A Highlight On Installment Loans
Installment Loans is a type of loan that must be paid over a scheduled period. For e.g. Mortgage is an installment loan. These are considered safer than payday loans, title loans, and credit cards. A person from Tomball or Washington D.C. can apply for installments loans with the right documents.
- Benefits: Installment Loans are relatively quicker in availability especially during the times of need. In installment loans, the documentation requirements are minimal like proof of income, checking account with the statement along with a valid proof of ID.
The qualification of the loan is based on your income and no traditional credit checks. You can get emergency cash within 15 minutes and in some states like Arizona and Nevada, you can use your car as collateral. The installments depend on your payday, with weekly, bi-weekly or monthly payments. There is no prepayment penalty attached. In addition, there is no restriction on spending the money. Disadvantages: Firstly, Lenders charge you an interest rate. There is a fixed rate or a variable rate. The fixed rate will be higher and will not change due to market conditions even if the rate becomes lower. This might make you pay you more even when the rates are lower. In terms of variable rates, the interest will be at market rate and will change according to the market conditions. However, the rates will increase if there is a change. Secondly, the terms of the loan are to be agreed before the loan is sanctioned and cannot be changed. The main problem in installment loans arises during non-payment. There is a threat of the forfeiture of the asset and companies can use aggressive tactics for payment. Some states like Missouri(MO) have limitations on debt collection. Warnings: Loans might have high upfront application fees. Beware of companies asking to transfer money via wire transfer/prepaid cards. When applying online, one needs to cautious about the information divulged. Most important of all, keep the documentation after payment safely, as scamster might call to recollect debt that has already been paid.
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