An installment loan is simple and convenient to pay back, given the flexibility of repayment. It provides borrowers, an access to bigger loan amount over a lengthy repayment period. With a personalized repayment schedule, the overall payments can be paid in a chain of installments. This is advantageous for borrowers who cannot afford to pay in lump sum. Thus, it allows for added flexibility.
Some direct lenders of installment loans offer multiple repayment plans. They can also be broken into semi-annual payments. However, the payments are usually paid off in monthly increments with interest over a time of approximately six months. It is necessary to be punctual with the payments to avoid late fees or other additional fees that lenders can enforce. Understand that the rates and fees for online installment loans vary from lender to lender.
Scheduled automatic payment is the convenient routine to repay the instant approval installment loans. With this set-up, the loan money along with the interest is directly debited from your authorized checking account on the scheduled due date, every month. Besides, such a repayment design saves you from defaulting on your installment loan. Under any situation, if you are unable to make your regular payments, it is best to contact the lender immediately.
Whatever be your installment repayment option, you should be consistent with your payments since both late payments and early payments have their respective impact on your credit score and add interest. Thus, if improving your credit score is not your goal, then pay off your loan early. This way, the fee is aligned as a result depending on the cut short payment schedule. Most of the online loan lenders do not charge any prepayment penalty and this gives additional control over the fees paid.
Installment loan lenders offer loans on flexible payment terms, as the loan is fashioned for a longer repayment term. This allows the borrowers to opt for a customized and budget-friendly repayment schedule that is easily manageable by the borrower.
Terms of Repayment
Depending on the respective lender policies, repayment terms vary. Nevertheless, the loan terms are agreed upon prior to the deposit of funds into the borrower’s authorized checking account. The standard installment loan terms are 12 bi- weekly payments, which should not be exceeding 180 days.