What Is an Installment Loan: It’s a kind of loan when a borrower gets a sum of money and pays back that adding interest in fixed installments for a limited time. It is generally called individual loan. This kind of loan can be used in some unfixed fields according to one’s need. This loan can be secured or unsecured.
At the term of secured installment loan, you have to guarantee a car or house for paying it off. If you fail to pay it off with interest, the lender can seize the car or your house to get the payment. Only for this, this is a less risky loan and the lender allows loan to a borrower easily even in lower interest.
In the term of unsecured loan, generally the interest goes to a higher point. You don’t lose your asset but sure to lose your credit in default of paying the payable money.
Installment Loan: A Bad Credit
It is generally known as the bad credit loan but only for some avoidable reasons. They have not reached to the installment borrowers with clear concept and often the borrowers are compelled to accept the terms of predatory lenders and the result has come out as the failure of the borrowers. Unfortunately, the borrowers can’t cope with the harder system of installment loan for their personal burden.
Tips on Shopping Installment Loan
Let me share my key knowledge on the way to avoid rapacious lenders and also some additional tips to get the best installment loan from trustworthy resources:
- Shop Around You
Actually, installment loans are not so tight to get it; you can get offer from banks, credit unions or from online lenders. So, places are available including short terms or no credit check lenders that may offer even auto title loans. It must be a work of good decision to ask the lender party what installment loan they can manage for you. You may ask for more options from them to take a final decision.
- The Issue of Credit Card
If you like to consider your expenses, you will be clear that using credit card you are going to expense less money than taking an ‘installment loan’. But, the wise thing to consider is the two options with a hair-splitting explanation.
- Target the Shortest Term
There are some terms of repayment the money. In some institution, you will get only two terms but you may need more options. So, you will be able to get up to five options to your convenience. But, I would suggest you to take the shortest term of repayment not to lose more money.
How to Avoid Predatory Lenders
Lenders are same in behavior to the borrowers to loan their money. Their eyes like to see the amassed money; they like confirmation of pay back the money with interest in the fixed given day; they are interested to lend their money for a squat time. Here I would like to add some tips to avoid these kinds of risky installment loan:
· Avoid those lenders who like to push you for renewal the loan. They just like to get more interest from people and entangle them with loans. They don’t like you but like your money to go into their pocket.
· Avoid any insurance add-on. This is a policy that can’t protect you in fact but ensure the lender to get their payment right way.
· Learn clearly the conditions- some gluttonous lenders may claim you some advance money to make you confirm for the loan but the right lenders who are actually take it a profession-would not want any advance to qualify the loan without checking your credit history or financial information.
· Avoid all high pressure lender- they won’t be a good man in the long run. You may feel pressure to borrow more money than you need, you must take it an omen of bad loan because the lender will make you obliged to renew the loan.
If you are badly in loan for such kind of loan, you may take it for serving your purpose. But, you should know that people are ready to make their interest only from you around your surroundings. Let you be wise enough to step down not to make another harm at your crucial point of life.