Not every American is lucky enough to have a safety net of cash. Unexpected expenses, like car repairs, can leave you short on funds and struggling to manage bills and monthly expenses. In these situations, many people will turn to online payday loans and other cash advances, but there may be other options such as an online installment loan. Online installment loans are an excellent option for those who need quick access to cash but cannot afford to repay the whole loan in one lump sum. Installment loans are usually repaid over an extended loan term through smaller, scheduled payments and offer three major benefits.
Most payday loans are due in full on your next pay date without exception. This type of repayment structure can sometimes increase financial strain on a borrower. The main reason someone might get an online installment loan is the smaller, more manageable payments. Instead of the total loan amount (plus fees and interest) being due on your next pay date, installment loans are paid back over time through smaller scheduled payments.
The longer-term payment schedule often works better for people because it makes repayment more manageable and convenient. Smaller payment amounts can allow you to repay your loan and still have enough money left over to cover your other monthly expenses. Paying through installments, with the flexibility to repay early without penalties, allows you to manage loan repayment and monthly bills in a way that suits your needs.
As installment loans have longer loan terms, lenders are usually able to offer a higher loan amount. For some people, these higher loan amounts can be enough to cover costlier emergency or unexpected expenses or help provide cash flow between pay dates. Larger loan amounts, coupled with manageable payments, can also reduce your risk of needing to take out multiple loans to acquire enough funds to cover an unforeseen expense.
An additional benefit to an online installment loan is speed. Online cash advances such as installment loan products are generally deposited into your bank account as soon as the next business day. This fast access to funds allows you to cover a necessary, immediate expense quickly and then gradually repay the installment loan over time in smaller, more budget-friendly amounts.
Many direct lenders offer online installment loans so you can have quick access to cash with repayment flexibility. Before you apply for an online installment loan, do some research and look for a state licensed lender like MoneyKey. Be sure to read and understand the rates and terms of your loan product fully to ensure you’re making an educated financial decision. To find out more about MoneyKey’s installment loan products, visit our Rates & Terms page.