An online installment loan is one that is paid in fixed monthly payments. People often misunderstand terms personal loans and installment loans. It’s true that all personal loans are paid in installments, but these two are different things. An online personal loan by definition is one that is up to $100,000 and has an APR of 5.99% to 35.99%. An online installment loan is a loan that is paid in installments. Note that there are many installment payday loans these days, which we do not recommend. If you have bad credit, you can get a regular personal loan. In this case, you can read our article on installment loans for bad credit. Now, before we give valuable tips on how to actually choose your installment, let us show you some of the best installment loans online.
||36 – 72 months
||5.99% – 35.99%
||36 – 60 months
||6.95% – 35.99%
||12 – 60 months
||5.99 – 35.99%
||3 – 36 months
||5.99% – 35.99%
||36 – 60 months
||6.99% – 35.97%
PersonalLoans is a company that you can’t ignore while shopping around. If you meet their income criteria of minimum $1,000 a month and a minimum 580 credit score, you can apply. Many lenders will compete to give you a loan.
Another big site with very low credit score requirements that enables even people with bad credit to get a loan.
Prosper is one of the best peer-to-peer lending platforms. You have to have a slightly better credit score, but if you do, then offers from Prosper may be the best for you.
If you want to see a full list of offers, shop around.
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How to Pick Your Installments?
When you choose your installment, you have to consider these factors:
- The frequency of payment. Most loans come with monthly installment payments, but there are other options that you can discuss with your lender.
- The total amount that you will pay every month. Make sure that you set an amount that you will actually be able to pay.
- The payment date. Pick a date of the month that works best for you. This is typically the date of the salary or a few days after it.
- Check for flexibility. This is an important factor that many people skip. What if one day you can’t make a payment? Many companies offer great flexibility options, like no late fee for a period of time, options to skip a payment, refinancing options and so on. If the company is not so flexible, this can be a problem for you. Flexibility costs money. Loans with more flexibility come with a slightly higher APR, but we consider this to be an important factor. Make your decision based on your financial situation and the ability to pay the loan.
The most important tip regarding long-term extended installments that you have to understand is the fact that:
Longer payment plans increase the total interest amount on the loan. So, when you extend the payment period, this means that your monthly payment will be lower but you will pay more interest because of the longer period. Picking a long-term loan is good because you pay less money per month, which means more free cash and no risk of being unable to pay the amount. But the bad thing is that you pay more money in total.
How to Pick the Best Installment Loan?
Again, the term installment loan means nothing else than the fact it is repaid in installments. So, looking for the best installment loans is actually slightly wrong. Better search for best online personal loans and find what works best for you based on your credit score. We have great articles on personal loans according to credit score. We invite you to read them.
Best personal loans for really bad credit.
In this article, we do our best to help people with a bad credit score and those in a bad financial situation to avoid payday loans and get a regular online personal loan.
Best personal loans for fair credit
Best personal loans for fair credit come with an APR of 10% to 20%. We are constantly updating our list of the best companies that help people with fair credit, so you will definitely find the best option for you.
Best personal loans for no credit history
No credit is better than bad credit. Bust still, lenders perceive this differently. Actually, no credit can mean different things: that the person is young, that they didn’t get a loan or that they have had a credit card till now, which means they are in a great financial situation.
Best personal loans for bad credit
The best personal loans for bad credit are not payday loans. Personal loan lenders approve people with bad credit much more easily these days than in the past. Bad credit personal loans come with an APR of 20% to 35.99%, which is considered expensive, but it is still much less than payday loans, which come with an APR of 400%.
Best personal loans for good and excellent credit
If you have good or excellent credit, you can expect an APR of 5% – 10%. In this case, we have really great offers for you.
Types of Online Installment Loans
Unsecured online installment loans. These loans don’t require collateral or getting a co-signer. However, you need to show that you have a great credit score and the ability to pay the installment on time. If you apply for a big loan amount, some lenders won’t approve you until you secure your loan.
Secured online installment loans. These require collateral that will guarantee that you will pay the loan on time. The advantage of this is that you will be approved easily, the APR will be low, and the amount you can get is higher than with unsecured loans. However, you have to be really sure that you will pay the loan on time because the lender can get the collateral if you don’t. Pro tip: If you go with secured loans, always look for flexibility. That factor is much more important than the actual APR. If one day you can’t pay the amount, you have to be sure that you will have some options like skipping payment or no late fee for a long period of time, so as not to lose your collateral or get a mark on your credit report.
Installment loans for bad credit. These are definitely not payday loans. These days, lending market is much more flexible and people can get personal loans even with bad credit. Please see our guide on installment loans for bad credit:
What Types of Installment Loans to Avoid?
Payday installment loans. These are slightly improved payday loans, but we still consider them very risky and don’t recommend them. You will pay much more interest and you can get into a debt cycle.
Installment loans that won’t check your credit score. The fact that a lender won’t check your credit score means that they don’t care about it. In fact, they know very well that your credit score is not ok. What they do care about is getting you into a debt cycle. The fact that a lender won’t perform a credit check doesn’t always mean that the loan is predatory, but it is true in most cases.
Installment loans near me. Typically, people who are looking for loans near them will find payday loans.
Quick Guide on How to Find The Best Loan
Check your credit score.
Look for incorrect information. If you find any mistakes, report them to credit bureaus. This will lead to an instant credit increase. Also, look for other options to increase your credit score.
Shop around. Based on your score, find offers that are available to you. More offers to compare is always better.
Wait for a few days to receive a high number of offers.
It’s not only about the APR. Consider factors like loan flexibility and carefully read the contract for any hidden fees.
Apply for the best offer.