Thursday, July 15, 2019 / 1:30 p.m. / Content by Sarah Williams / Header image credit: The Tech Mesh
With the advent of the Internet age, the financial industry has undergone many changes. Easy access to financial aid, such as loans, has become easier than ever. What’s more, with the competitive nature of the many online market entrants, banks and other microcredit institutions are making peace with the reality that they need to come up with more creative products to keep the market happy.
The online lenders have managed to do this fairly well with the varied products which seem to pay attention to the immediate needs of the common man. One of these products is the installment loan. It is common knowledge that unforeseen expenses are difficult to meet, especially given the usual monthly bills. In such cases, short term solutions become necessary to help save the day. This is where online installment loans come in.
Installment loans with direct lenders become really essential when looking to take out a loan with a long repayment plan. Let’s try to understand what these loans really look like.
What is an installment loan?
Two things define a installment loan, and these are its ability to access them quickly and the long durations that you can have to pay them off. A more refined definition for a loan that can be repaid via multiple payment schedules, with due dates falling on the borrowers’ payment dates. Direct lenders are among the most trusted and popular options for accessing these loans.
While installment loans are generally characterized by the possibility of having long-term repayment options, there are also short-term installment loans. These loans can be repaid in a matter of months or even years. These loans are mainly used to cover expenses such as medical bills, as well as house maintenance, among others,
When it comes to long term installment loans, these are common with mortgages and are mostly paid over terms of 20-30 years as dictated by the repayment terms. Unlike many short-term loans, the
long term ones are guaranteed by pledges.
To better understand installment loans, we could contrast them with payday loans. While they all help you get the cash you need fast, they differ in their repayment terms. For a personal loan, it must be fully repaid on the next pay date. Whereas for an installment loan, the amount to be repaid is divided and paid over the following pay dates, allowing only a small portion of the amount owed to be repaid during a given date range.
Obtain installment loans from direct lenders
Get installment loans with direct lenders is the most reliable option. It is no wonder that it is popular among the many options. Direct lenders are simply loan providers who bind directly to the borrower to issue the loans. This means that the borrower does not need to go through a broker for such a service.
Knowing who to contact can be a daunting task if you are doing it for the first time. However, with the information available on the internet, it is possible to engage him and use your best judgment to arrive at an appropriate option. For example, reviews are a good place to start. As with all industries, there are direct lenders that will appear on different lists among the major providers of these services. It is wise to go a step further and browse through the reviews that have been given regarding these services.
It is important to ensure that they are authorized by the state to make direct installment loans. While some lenders may have licenses for certain states, they may not necessarily be licensed for the state you are in, so make sure you can get proof of this before proceeding any further.
Go ahead and even call them to make sure their terms are working for you. More often than not, with the right dose of due diligence, you should be able to get to the right provider without risking falling into the hands of the wrong options. If you are unsure of where to stay, MoneyKey is a good option to consider, given that they are licensed in many states.
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