What are installment loans?

Installment loans are the type of loans normally repaid with a fixed number of regular and equal payments done over a period of time that may be from as short as a few months to several years. The payments are usually amortized in order to include certain amounts of interest and principal that are calculated over a given number of months.

What are installment loans used for?

Installment loans normally come in handy whenever you are looking to purchase a very costly service or item. They are convenient for big purchases that include items like cars, houses, and even college tuition since they can be repaid in periodic installments that are usually manageable according to your financial status.

These loans are also structured in a way that the lender is always assured that the loan will be repaid comfortably.  Once your loan has been approved and the money sent to you, your interest obligations will begin to accrue periodically at a specific rate. In cases where you fail to repay an installment loan, then your interest will simply accrue; meaning that you will be required to repay more than you had applied for.

Are installment loans easy to apply for?

Nowadays with the presence of the internet, installment loans have become very easy to apply as the applications can be completed online at the comfort of your home. By using a specialized lender like Oak Park Financial, you can be sure of getting your installment loan quickly and easily as compared to the traditional lending methods like credit unions and banks.

With traditional methods of applying for installment loans, you will need to complete an application form where you will be required to provide proof of your active checking account. Once all your information has been reviewed, you will then be notified through writing whether your application has been approved or declined. This can be quite a long process if you are looking to secure the installment loan in a short time so as to start funding your intended project.

Why Oak Park Financial Installment Loans Are Different From Other Lenders

Borrowing an installment loan from Oak Park Financial is a great way to start planning for a better tomorrow. Keep reading to find out why Oak Park Financial installment loans are different as compared to other lenders.

  •   Quick Approval Process – As soon as we receive your installment loan application at Oak Park Financial, rest assured that it will be processed and approved within the shortest time possible and the funds electronically sent to you the next business day.
  •   Choose Your Repayment Terms – Once we have approved your loan for a certain amount and you have agreed on the amount to borrow, then you can use our feature that is designed to let you choose the appropriate repayment dates that will be ideal for you. The loan amounts offered will depend on your current state of residence.
  •   Get A Chance To Build Your Credit – At Oak Park Financial, we may report your loan repayment to credit bureaus; hence help you in building your credit history.

Difference between Payday Loans and Installment Loans

The difference between payday loans and installment loans is primarily on how they are repaid. Payday loans are usually repaid in one lump sum that is equal to the amount you borrowed with the additional fees on top of it. Installment loans, on the other hand, are supposed to be paid back over a period of time in equal payments, usually done on a monthly basis.

Are installment loans cheaper than payday loans?

Payday loans are also considered to be more costly as compared to installment loans. Typical APRs tend to reach into the 100th percentile for payday loans, but what you will be required to pay depends on your state of residence. Likewise, installment loans do vary in cost since the amount you will be required to repay depends on how good your credit score is.

When Can I Consider Taking An Installment Loan?

If you are looking to take an installment loan in order to perhaps repair your car or consolidate your existing debts, you should ensure that you choose one that is right for you. The following are some of the things an installment loan can assist you in taking care of:

  •   Car Down payment – When you are looking to buy a car, you will be required to provide a down payment in most cases. Instead of opting for other expensive means of funding for the down payment, you can take an installment loan in order to cover for the car’s down payment.
  •   Taking Care Of A Medical Bill – In case you have a huge medical bill that needs to be repaid, then an installment loan can come in handy and help you clear the bill in a lump sum.
  •   When faced with an Emergency – When faced with an emergency that needs your immediate financial attention like a car repair, then an installment loan will be your best bet since it can be repaid in small and manageable units.
  •   Consolidating Your Debts – If you happen to have unsecured debts, then an installment loan is the best way of ensuring these debts are paid in full with a regular payment scheme that is easier to manage.

Benefits of Online Installment Loans

  •   Higher loan amounts – Unlike other types of loans, installment loans are characterized by higher loan amounts that can go a long way in assisting you to cover unexpected and costly expenses. The loans are also paid in manageable installments that prevent you from the risk of taking multiple loans in order to take care of unforeseen expenses.
  •   Speed – Online installment loans can be applied in the comfort of your home and their approval process is relatively faster as compared to the traditional methods. Approval can be done in just a matter of minutes; hence giving you a chance to take care of any emergencies that need your immediate financial attention.
  •   Always accessible – Most traditional lenders tend to work only during business hours. This means that they might not always be there whenever you have an emergency that needs your immediate financial attention. With an online installment loan, you do not have to wait until the next morning for the bank to open, all you will need is just a computer and the internet and you can apply for the loan at any given time.
  •   They are convenient – unlike the traditional lending methods, you have the luxury of comparing your options for online installment loans at the comfort of your home in order to ensure that you have settled with a lender that will take care of all your interests.

Conclusion

Installment loans can offer you a solution whenever you are in need of immediate cash because of their flexible terms of repayment. However, it is advisable not to think of refinancing them in order to extend the repayment period since this will only contribute to growing your debt burden.

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