No matter how financially stable you are, you can find yourself in a crisis. When emergencies hit, getting a loan may be your only option. As far as choices go, it’s not necessarily a bad thing.
Sure, being in debt is no one’s preference, but if you choose carefully, your loan doesn’t have to be a financial nightmare. Monthly installment loans are a safe way to borrow money when something comes up because you know what you’ll be paying and when it will be paid off.
These types of loans have other benefits, too. Here are 4 advantages to monthly installment loans that you may not have known.
4 Reasons to Choose Monthly Installment Payments as Your Next Loan
1. Your interest rates are fixed, not variable.
Variable interest rates may sound appealing at first when the initial annual percentage rate is a low number, but when it spikes, your monthly rates do, too. Fixed interest rates ensure that you know what your monthly payment will be and how to budget accordingly for it. These are safer loans than lower payments for a while, higher payments for a while, and then lower again. The uncertainty is difficult to plan for.
2. Installment loans offer longer payoff terms.
Monthly installment loans have flexible initial terms. If you need a lower monthly payment, you may be able to qualify for a longer amortization, or payoff period. If you want to hurry and get the loan paid off quickly, you can opt for a shorter payoff period.
3. These types of loans usually mean you get your money quickly.
If you need money fast, an installment loan is a way to go. In many cases, you can even apply online for your loan and find out within minutes if you are approved. Depending on the lender and your requested loan amount, you may be able to receive your funds in as little as 48 hours.
4. The approval process is less stringent.
If your credit is less than perfect, you can still likely qualify for a monthly installment loan. You may have to do your research to find one that will accept your credit, give you the amount of a loan that you need, and still offer reasonable rates. Check the fine print, too. You don’t want to be stuck paying extra fees that were not explained to you up front just because your credit is suboptimal.
Financial Crises Can Happen to Anyone
If you are in the market for a loan, whether it is for renovations, a doctor’s bill, college admissions, or any other important or unexpected reason, it doesn’t have to be a stressful time. With a bit of research, a little work on your part, and the right lender, you can have your money quickly and know what to expect to pay monthly and for how long.
Choosing a monthly installment loan can be a smart financial way to make lemonade when life hands you lemons. Let the recipe for lemonade be in your hands by going with a reputable lender and monthly installment payments.
