Are you thinking about taking out payday installment loans? Don’t start calling around to providers before you read this article.
If you’re currently facing a financial emergency, you may be interested in taking out a payday installment loan. This kind of loan gives you the quick cash that you can expect from a standard payday loan, but you get more time to pay the loan back in installments.
With a traditional payday loan, you have to pay the loan back by your next payday. With payday installment loans, you repay them over a longer period of time, in installments, with interest.
Knowing how payday installment loans work makes you better decide if it’s the right loan option for you.
What Is a Payday Installment Loan?
A payday loan is a loan that can get you quick cash but comes with terms that let you pay back the loan in installments. These installments can vary from just longer than a single-payment payday loan to several years.
As with other installment loans, these loans are paid back in multiple installments over a period of time. While there’s the benefit of getting more time to pay the loan back, you can also expect higher interest rates.
Fees
Some lenders will charge you an origination fee. This can end up adding to the cost of your loan.
You also might be charged late fees if you don’t make your payments on time. If you don’t have enough money in your account to cover the installment, then you might get hit with a returned check fee.
Certain lenders make it easier for you to avoid late fees by offering flexible schedules. Take a look at reputable lenders to find the best terms for your loan.
Loan Amounts
You can usually expect relatively small loan amounts when it comes to payday installment loans. These amounts tend to range from a few hundred dollars to a few thousand dollars.
The amount that you’re able to borrow can depend on a variety of factors. Those factors can include your income and the maximum loan amount that’s legally allowed in your area.
Unlike standard payday loans, some lenders might check your credit scores or credit history. However, others won’t do that.
Application Process
To find out if you’re eligible for a payday installment loan, you must first fill out a loan application. The lender might run a credit check, confirm your identity, and verify that you have a source of income.
You will usually need a savings or checking account to apply.
The Importance of Knowing How Payday Installment Loans Work
Hopefully, after reading the above article, you now have a better idea of how payday installment loans work. These days, individuals need whatever financial resources they can find. And payday installment loans might be just what you need to get out of a financial emergency.
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