Installation loans are the newest type of loan. With more flexibility in loan amounts and payment terms, this type of loan is one of the best yet. An installment loan is a loan that is set up over a specific amount of time, and they are usually paid back with specific monthly payments instead of bi-weekly payments like short term loans. Installment loans are useful because the amount borrowed can be higher in some cases, than your typical pay day loan. This means you can receive a higher amount of emergency funding, while getting a longer time to pay it back. Other advantages of installment loans are:
- Decide how much you can pay back monthly, before deciding on your loan amount.
- Larger loan amounts
- Borrow money over a longer period of time, instead of the typical two week increments.
- Get your loan funded just as quickly as a short term loan.
- Could positively affect your credit score, as long as you make your payments on time.
Here at Preferred Loans, we try to find as many options as possible for our customers. So when setting up your installment loan, you can choose from the following options:
- Pay your loan back in weekly payments.
- Pay your loan back in bi-weekly payment.
- Pay your loan back in bi-monthly payments.
- Pay your loan back in monthly payments.
Allowing you to choose your payment schedule based upon your own situation gives you the freedom to choose your timeline for repayment. Want smaller more frequent payments, that’s a possibility. Want slightly larger, monthly payments, we will make that work. It’s all up to you. We will help you make the best decision for YOU.
Here is a breakdown of the difference between Short Term Loans, and Installment Loans. Find the one that best suits your needs:
| Short Term Loans | Installment Loans | |
|---|---|---|
| Re-payment Terms | Usually 2 weeks. | Up to 6 months, depending on the lender. |
| Security | Secure | Secure |
| Loan Amounts | Typically less than installment loans, ranging from $100-$1200. | Loans can be higher with installment loans, $100+ |
| Benefits | Perfect for emergencies, but should not be used for prolonged periods. | Better for longer term loans, with more flexibility on payment terms. |
| Re-payment Frequency | Occurs on your next pay day. | Can be repaid weekly, bi-weekly, bi-monthly, or monthly. |
| Online availability | Available Online | Available Online |
| Flexibility | Not as flexible as other options | Very Flexible |