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Installment Loans

What Is an Installment Loan and How Does It Work?

By June 27, 2022August 1st, 2022No Comments
how installment loan works

What is an Installment Loan?

You may obtain the money you need now with an Installment Loan from OakParkFinancial, and you can pay it back over time. Installment Loans are longer-term personal loans that range from two to twenty-four months in length, depending on your state. Installment Loans are available in most states, both in-store and online.

What’s the difference between a Payday and an Installment Loan?

Understanding the distinctions between payday and installment loans will assist you in determining which is the best match for you. A payday loan, sometimes known as a cash advance, is a short-term personal loan for which you pay a one-time charge depending on the amount you borrow. Payday Loans are great for filling up the gaps between paychecks or dealing with unexpected bills.

In-store or online installation loans are usually bigger loans with a more extended repayment period. These loans enable you to borrow a more considerable sum of money and return it over a more extended period. Customers who choose to pay in installments over time will benefit from these.

Why choose OakParkFinancial?

Installment Loans from OakParkFinancial allow you to repay your loan in a method that best suits your circumstances, with extended payback terms available. This implies you’ll be able to repay the loan over time in several installments.

We’re a state-licensed business. Therefore we abide by all state and federal regulations.

There are no surprise charges or hidden expenses when taking out an Installment Loan since all rates, conditions, and fees are clearly stated in the contract.

OakParkFinancial provides what sorts of loans?

Traditional short-term installment loans are available via Credit Central, with amounts and periods varying depending on the stage of operation. An installment loan is repaid in a defined number of equal monthly installments over a given period.

Different Types of Installment Loans

Installment loans are typical for unsecured personal borrowing. These loans are available from various sources, including banks, credit unions, and internet lenders.

  • Auto loans: When you buy a car, your monthly payment is usually set for the duration of the loan.
  • Installment loans for home purchases include 30-year fixed-rate mortgages and 15-year mortgages.
  • Home equity loans: A second mortgage allows you to get cash in a lump sum and pay off the obligation over time.
  • Loans for students are often offered in the form of interest-only installment loans. If you borrow money more than once, you will most likely have many loans.
  • Other loan types: Installment loans come in a variety of forms. RV loans, fertility loans, dentistry loans, and landscaping loans all fall under the category of installment debt.

How can I apply from OakParkFinancial?

You’ll need a government-issued ID, proof of income, a bank account, and social security number verification evidence to apply for an Installment Loan. State regulations differ. Click here to go to your state’s website for detailed information.

What is the requirement to get approved?

The following items are required to apply for an Installment Loan:

  • Identification from the government
  • An open bank account,
  • evidence of recent earnings,
  • a valid SSN,
  • For Online Loans, you need an active email address.

How will the funds be deposited into my account?

Whether you completed your application in-store or online, you have a few different choices for receiving your funds. You may get cash or a check as soon as you’re accepted and sign your loan papers in person for an in-store Installment Loan. If you apply for an Installment Loan online, your funds may be sent immediately into your bank account the same day.

What are some advantages of taking out an Installment Loan from OakParkFinancial?

This loan gives you the funds you need right now, with the option to make monthly installments depending on your pay cycle. Furthermore, the application procedure is simple and fast, with the opportunity to apply in person and online (depending on your state).

What is the maximum amount of money I am eligible to receive?

Installment, The size of the loan varies depending on the state. We utilize your personal information to establish a loan amount suitable for you when you apply for an OakParkFinancial Loan.

Is collateral needed for an Installment Loan?

For OakParkFinancial Installment Loan, no collateral is needed. To complete your application, we need your government-issued identification, proof of income, a checking account, and social security number verification. Please go here to find the papers you’ll need to complete your application.

FAQ’s

How can I apply for an Installment Loan in-store or online?

Only a few states provide both in-store and online installment loans. View your choices by entering your zip code to check whether Installment Loans are available in your state

Do I need good credit for an Installment Loan?

OakParkFinancial considers customers of all credit categories. We’ll check third-party data sources to verify credit for Installment Loans.

What is the procedure for applying?

You may apply in one of three simple ways. Select one of the following three methods to use with your picture ID and social security number in hand:

Using the internet, Fill out OakParkFinancial short online application to begin your inquiry.

In-Person — Visit an OakParkFinancial branch near you and fill out an application with a friendly employee.

Call your local OakParkFinancial branch to talk with a helpful person who will walk you through the application process over the phone.

What’s the best way for me to pay back my Installment Loans?

Your Installment Loan will be repaid by automatic withdrawal from your bank account or cash payment at your location on each installment due date, which usually follows your pay dates. Depending on your state, repayment might take anywhere from 3 to 36 months and is generally scheduled around your pay date.

How often do I have to make repayments on a loan that I’ve taken out?

Loan installments from OakParkFinancial are usually made on the same days as your paychecks. We’ll review the particular due dates and amounts related to your loan during the application process to ensure you understand the conditions before signing.

Is it possible for me to pay off my loan sooner than expected?

Yes. Paying up your loan early incurs no penalty, which may lower your total loan cost.

Do they check my credit?

We’ll check third-party data sources to verify credit for Installment Loans and extended-term loans.

Taylor Day

Frequently Ask Questions

A payday loan (sometimes referred to as a cash advance or a payday advance) is a small loan borrowed for a brief period of time, often until the borrower's next payday. These short-term loans feature high interest rates and need no collateral (unsecured loans). It is not advised to use payday loans for an extended period of time. The rates and terms of payday loans vary by state.

A title loan (sometimes referred to as a title pawn or a car title loan) is a short-term loan where the vehicle title serves as collateral. Due to the fact that lenders of title loans do not verify borrowers' credit histories, these loans are popular among those with poor credit. Typically, title loans are taken out by borrowers who need cash quickly or have financial issues.

Unsecured loans, such as payday loans or installment loans, are supported solely by the borrower's creditworthiness, as opposed to secured loans, which need collateral. Secured personal loans include car title loans and pawn loans, for example.

State rules determine the maximum amount you can borrow as a short-term loan. In certain states, short-term loans (also known as payday loans) are prohibited, while in others they are permitted with a maximum loan amount. Visit our rates and terms page to get state-specific lending conditions. In addition to state legislation, additional factors may alter the conditions of your loan.

A personal loan that is repaid over time with a predetermined number of periodic payments or installments is known as an installment loan. Due to the lower APR, installment loans can be taken out over a longer term than payday loans. Installment loans are commonly seen as a preferable alternative to payday loans. Typically, installment loans are repaid in predetermined amounts that include both principal and interest.

The Annual Percentage Rate, or APR, is an annualized version of your interest rate. When picking between several types of loans, the APR assists in comparing the costs of each. The annual percentage rate (APR) for a loan may include costs, such as origination fees. Remember that while APR is essential, it is only one of several elements to consider when selecting a loan.

Yes. Your credit score is not the only criteria taken into account when analyzing your loan application. However, a low credit score can result in higher interest rates and fewer lending possibilities. A title loan is a popular option for consumers with poor credit because title loan lenders do not consider credit history.

Credit score ranges differ depending on the credit scoring algorithm employed and the credit bureau that generates the score. According to FICO, a credit score between 300 to 579 is poor or very poor. A satisfactory credit score ranges from 580 to 670. Credit scores are determined differently depending on the credit scoring model's parameters, such as payment history, amounts owing, length of credit history, etc.