The world runs through money. Try to remember the time when you were born, that involves money as well. If your birth involved money, how can you imagine any other thing that can work without it? Initiating with all the necessary requirements, an individual goes through, in order to take his/her care, moving forward to the education, taking steps toward adulthood, each one revolves around the colourful and fresh fragrance of the ravishing pound note. Just how relaxed they make you feel while in your pocket equally tensed they can make you feel when you have lack of money to meet your requirements.
On the other hand, time keeps fluctuating making you realise the worth and importance of the same. For such moments, it is important for a person to ‘SAVE’. But, what about the times when you have no savings and you have already broken the bank? Well, that can be the time when you badly need to borrow. And, installment loans UK can be the helping hand to ensure the same.
What are Installment Loans?
Unlike the regular loans or regular modes of borrowing the money, these loans ensure the repayment of the total sum being borrowed through easy payable installments. These installments are usually scheduled prior the approval of the loan. This type of loan can be a short term loan or a long term loan, depending upon the lender’s policies.
Example: you have an urgency for money, as you require money to complete your education in the desired field where you cannot afford to fund it on your own. In that case, getting an installment loan can be the auspicious choice. Now, you can finish your studies and pay the amount in future through easy installments.
Some of the frequently used installment loans
An ample number of situations might occur in one’s life when they suffer from crashing financial tumbles. Here are some of the times when installment loans help you get up and fight back –
- Auto loans – It is hard to save the huge amount in order to buy the automobile in one go. Rather, most people opt to follow the path of getting installment loans online or offline and then paying the clustered amount in equal installments. These installments can range up to 12 months or even more depending upon the amount.
- Mortgage – Buying your own house involves hitch. The amount is undoubtedly triple the amount of your income. In that case, it is impossible to give the whole amount as a payment. A down payment for a certain amount like 15% of the total amount is paid initially and the resting amount is being borrowed which can be later paid through installments.
- Student loans – The need for education always grows. But, getting education from the right source is crucial. This is exactly what these loans let you do through the simple and hurdle free repayment facilities being provided through them.
Now that you are familiar with installments loans, let us move forward to the questions that must be popping in your head constantly. One of these includes, why should you be choosing them? Stop giving a strain to your head by thinking so hard, here is the answer to your confusion.
Why to Choose Installment Loans?
The first and foremost reason why one must choose these loans is because a specific contract is signed between the lender and the borrower telling about the terms of the loan. This contract, in addition, tells the borrower about a specific date when the loan would be paid off completely and the amount of installments.
These loans are comparatively more flexible than any other types of loans. So, if a borrower finds it difficult to make repayments, he/she can reduce the amount. This helps the borrower to make regular payments rather than not paying at all.
When talking about these loans, one of the most important reasons to opt for them is the easy availability of cash. No excessive documentation is required when one chooses to apply for these long term loans.
Did looking at these reasons made you have a thought to apply for loans with installments? Do you think you know them well? If not, here are some questions you need to ask if you are looking forward to a better loan deal.
What is the term of the loan?
Increasing the loan term does not reduce the loan installment rather it increases the actual loan amount. Before getting the loan, take notice of the term of the loan to ensure a better experience.
Are the interest rates suitable?
A good buyer thinks about the repayment of the loan in the first place. For the same, it is crucial to ask yourself whether your lender is offering you suitable interest rates or not. Higher rates of interest just make the process of repayment a burden.
Do I need collateral?
It can be difficult to find a guarantor when you are thinking about getting a loan with bad credit. In such a situation, lenders might not find you a trustable option to lend and require collateral. To ensure smooth borrowing, make this clear before borrowing. If you do not have access to both, collateral and guarantor, you can then apply for installment loan for bad credit through direct lenders.
Following the path of applying and getting approved on loans can involve hurdles and hardships. These can be overcome by having complete and proper knowledge of the kind of loans you are interested in and what major options you have to confirm the best experience in addition to bag full of pounds.
Are you ready to click on the “APPLY” button in affirmation? Wait once more, and give it a thought again because maybe you still do not know all that you need to know in order to make a confirmed application.
Let us now discuss the pros and cons of the installment loans that you might face before or after the loan application and approval.
Pros of installment loans
Here are some of the pros that make you opt for these loans –
- Small installments – The repayments through these loans do not create any sort of pressure over the borrowers, as they are meant to be made in installments. This breaks the big borrowed amount into smaller ones and eases the process of repayment.
- Fixed installments – Another advantage that adds to the pros of these loans is the fixed installment basis return. This helps in making timely repayments and avoids any sort of confusions at the time of returning the amount.
- More savings and more investments – The repayment of installment loans involve a fixed and specified interest rate. This interest rate is usually small. That means that the saved rate of interest can be used for making saving or some small investments.
- Lower interest rates – As the repayment process takes months or years to be settled depending upon the loan deal, the interest rate is relatively lower than any other kind of loan.
Cons of installment loans
Just how every coin has 2 different sides, these loans also have some cons or disadvantages attached to it. Some of them are –
- There are some lenders who conduct strict checks to the credit history, calculate the debt-to-income ratios, and follow some strict rules to approve the loan amount finally. This can, at times, lead to delayed funds.
- Pre payment of the loan might not be possible. Say, if you want to get rid of the repayment pressure by paying higher amounts earlier, which might not be allowed through these. You have to make the payments as scheduled.
These are the few disadvantages involved with installment loans that can make them burdensome at moments. Though most people consider the cons as negligible and still opt for them over any other kind of loans.
Now, you are familiar with both advantages and the disadvantages of these loans. When it comes over to finally making a decision, the advantages of the loans make the answer incline towards “YES”.
But, what happens when you find out that you have a bad credit score to worsen the situation? The struggle is real at the time of an urgent requirement, but installment loans with no credit checks flip the situation and let you enjoy the benefits of simple money credit and simpler money repayment. Not just this, they also help in improving the credit score of a borrower.
How it contributes to the credit score?
Borrowing loans with a bad credit score sounds and appears difficult. It certainly is. But on the same time, it proves to be advantageous at another end. Punctual repayments of the installments help in improving the credit score to a great extent. Resulting into more and better opportunities for loans in the near future.
That is how the instalment loans help you in managing the funds for your times full of misery due to financial requirements. If you are a person, that has faced enough because of the lack of money, this is your time to think no more and find the best deals at instalment loans now. You simply have to take a few minutes out of your busy schedule and make an easy online application with all the necessary personal information including the loan amount.