Installment Loans

Throughout the history of humankind, lending and borrowing have been practiced for many thousands of years. In 2,900BC, cuneiform scripts were used to record business, loan agreements, and the sale of slaves. Indeed, when you think about Alexander the Great or Rome’s Caesar, credit or loans do not come into mind. 

The concept of credit, mentioning of installments, and regular intervals were approximately established between Mesopotamia and Egypt with Rome and Athens for trading. Back then, there was no financial security and bank agreement, but the interest rate with at least 20% for the installment payment already existed. 

Until the early 19th century, the difference between “installment plans” and “installment loans” was not clearly stated publicly. The first successful, well-known example in the United States of using installment loans was Singer Company. 

They used the financing to purchase their sewing machines. It brought unbelievable success to Mr. Singer, and other companies started to use these kinds of loans. 

Installment loans became a financial wave in radios, phonographs, washing machines, clothing, jewelry, and many types of household equipment. 

If you like movies made in the ’90s, you will notice that most purchased cars were financed using the installment loan agreement. Without a doubt, at the beginning of the 20th century, the slogan “buy now, pay later” in the car market was at the top.

Installment loans are one of the most common financial instruments. Even if you are not familiar with the definition, you have most probably faced auto and student loans, mortgages, or even personal loans. Without your personal knowledge, you or your relatives have experienced this term at least once. 

An “installment loan” is a broad, general term that represents the dominant part of both individual and business credits given to borrowers. “Installment loan” incorporates any loan that is paid back with a scheduled payment or installment (that is why it is called an “installment loan“). Every installment on a portion of the obligation incorporates reimbursement of a segment of the principal sum obtained and the payment of interest of the debt.

To simplifying the definition, let’s consider the main takeaways:

• It is a personal or commercial loan, where borrowers have to pay back a certain amount of money on a scheduled basis (as mentioned in the agreement).
• The borrower pays back the initial size of the loan, including the interest rate.
• A real example of installment loans are student loans, personal loans (for example, funds for discretion), mortgage (a loan for a house), and auto loans.
• It provides a lower interest rate and flexible terms, which are one of the most significant advantages to the borrower.
• As with any credit or loan, it can be collateralized (secured) and non-collateralized (unsecured). The difference is: if you apply for the loan, which considered collateralized, you have to provide assets or property in the form of security pertaining to this loan—non-collateralized means you do not have to provide any assets information to get approval.

Step to Reality: Statistics About Installment Loans

In comparison with credit cards, the installment loans’ interest rate is dropping by an average of four percent per year. Meaning, using a credit card is getting more expensive than using an installment loan for the same purpose. 

In a survey of 32 states in the U.S.A., the average interest rate is verified from 17% to 36% percent. If you have a good credit history, you can lower your interest rate. According to the Economic Research, the auto installment loans dropped up to 5.50%, which is an extremely low-interest rate for your dream car. 

Currently, the U.S.A. holds $13,86 in consumer debt. Most critics agree that consumer debt is good for economic growth: when the economy grows, you can also pay back your debts. Loans give you a chance to pay for your house, dream car, and education today, without waiting for 30 years, saving for a piece. 

College, B.B.A., and M.B.A. students are getting a higher salary, as commonly thought, a better education leads to better income. It also boosts the economy and allows individuals to pay back their loans faster. 

Without it, the majority would have to work for at least ten years before going to school; your dream car might also be out of production in 15 years, and, most probably, living in a house and paying for rent another 30 years is not an option for some.

The Boom of the Online Installment Loans

The era of agents is declining from year to year. More people prefer to use financial instruments online as it is fast, quality, and straightforward. Rather than using lunchtime for going to the bank, the majority of people prefer to use financial tools online. 

Nowadays, you can transfer and receive money by just tapping once a screen, as well as apply for installment loans. Online installment loans have gone from a small niche to a red-hot industry in just five years. Online users collectively owe around 50 billion in installment products, and it is almost half the amount of all consumer debts in America. 

In 2014, 25 million loans were accepted online, while in 2018, the number grew to almost 800 million credits. Now, just imagine the actual amount that was applied! It could even triple the number. 

According to M. Saunders, from the National Consumer Law Center, installment loans online are considered as a cash cow for creditors but a devastating cost to borrowers. 

Ranging from $100 to a $10,000 deposit, it quickly made online installment loans popular, as it provided fast money and almost 100% chance of approval to any family. Besides, consumers are allowed to use the funds according to their own needs, rather than a prescription of the banks. 

Online installment loans gave fresh air to people who struggled to overcome their financial costs and debts. Moreover, it cut the necessity of going to the bank and getting judged “approved or not” by a bank officer. 

Continually updating the banking system turns the process of getting a loan into begging, while online services provide more freedom and less strict applications. Online installment loans are also turning into securities used for sale to bond investors, which gives them an even lower cost of capital and a broader investor base.

There are a couple of reasons why installment loans online are so popular amount citizens and used in various industries:

Predictability 

When you apply for the loans, conditions are discussed in detail. Meaning, the fixed amount you have to pay on scheduled days. Anyone can have a higher budget control, which is opposite to a credit card. 

While using the credit card, you are getting access to money, but at the same time, you can quickly jump over your limit. Installment loans provide you a schedule where you can choose the best days for you to pay back the loan. Speaking of your status, it can differ: you can pay once a month or a couple of times. 

No Catches or Traps

Another potential benefit of using online installment loans is that they are not designed to entrap and create a situation where there is no way to get out of debt. It is a 100% transparent way. Whether it is a year or six months, the conditions are not changeable if only you use licensed professional service. 

The great example was in 1981, when because of inflation, the Fed raised interest rates by 19%. Increasing the interest rate may have a dramatic influence on your budget. Moreover, no one wants to pay back more than supposed to. 

The stock market is an unstable mechanism in our world; it can be influenced by thousands of factors and get anyone into more trouble. That is why it is vital to get clear and transparent conditions, and online installment loans support that. 

Convenience and Speed 

When you apply for online installment loans, you can get approval within some hours. The rules are not as strict as in the bank. You can complete all the steps sitting in your chair at home, working, or even during shopping, or traveling. 

Who Is Qualified for Applying to Online Installment Loans?

Although the rules are not so strict as in the bank, there are still some requirements a borrower has to follow:

• Have proof of income. It might sound scary for some, but as mentioned, the installment loan is available almost for everyone. You do not have to work full-time, even part-time job holder is qualified to apply. A borrower should show any sort of income: disability allowance, pension, or welfare.
• Have an active bank account: a borrower needs to have a bank account, so after an online application is made and approved, he can get the borrowed amount transferred to his account. In some cases, a borrower can go to the local bank and receive cash, but the office can be far away from one’s house and less convenient.
• Valid ID – A valid I.D. is needed to confirm that you are older than 18 years old. You can show your driver’s license, as long as it shows your real age.
• Citizenship or permanent residency. The online installment loans in the U.S.A. are not provided to a person with a tourist visa.

There are many doubts if an individual can get money even with a bad credit rating. The answer is yes. If you have all the mentioned qualifications, you can apply for installment loans even with bad credit rating. A person with a better credit rating might get better conditions for a loan.  

How to Get Through the Process Without Stress

We are a professional service and have helped thousands of customers around the states. We strive to systematize and make the service easy for every person at any age.

Our A.P.R. and interest rate depends on a variety of factors. Once your application is complete, our specialist will contact you, providing a couple of options for the loan that fits your needs and lifestyle the best. 

Then, following a simple verification process, you confirm your identity. After you decide the best match conditions with our specialist, you would have to sign the electronic agreement (online document) and just wait for your funds to come into your account. 

As a result, you are set in only three main steps. If you need a more flexible structure for your payment, fast turnaround, apply now, or contact our specialist for help. 

As getting installment loans online went viral, we highly suggest using only a registered service. If someone asked you to pay before getting the loan, it is a red flag to step back.

If you are interested in an installment loan, make sure you understand the conditions on the loan you are agreeing on. Our professional team can help you to clarify all terms and help you to get the best installment loan on your particular case. Stop dreaming for tomorrow if you can get it today! Contact us for more information.

FAQ

What Are Installment Loans Online?

The loan that is managed online. Many borrowers find it quicker than going to the local bank. Besides, online managers reply to all your questions fast without you spending an hour waiting in the queue.

How Do Installment Loans Online Work?

You can apply anytime from your P.C., phone, or tablet, and get the approval within 24 hours, pass verification and sign the agreement online. A simple and easy way to get a loan in just three steps. 

How to Get out of Installment Loans Online?

A borrower can sign a faster pay off day or round the payment up. Also, you can apply for unexpected money for your loan.

Who Offers Installment Loans Online?

Online lenders provide loans. If you are new, exploring lender perks can be a hassle. Check our inquiry form for more information.

How Many Installment Loans Online Can I Get?

This depends on the state you live in, as in some states, you are allowed to take up to eight installment loans online.