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.
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.
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.
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.
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.
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.
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:
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.