An installment loan is when you borrow a set amount of money and agree to pay the total back in the series of monthly payments, You’ve probably heard of some of the common types of installment loans, such as student loans, auto loans and mortgages.
How Does It Work?
So how does it work? Let’s say you borrow $1000 at an interest rate of 15% over 24 months. Divided over the dictated time period, your payment would be $48 per month. This total would come out to $1164, meaning you’ve paid $164 an interest for access to the $1000 you did not have up front before getting a loan. Installment loans are an excellent option for many situations. Some good examples are buying a home, going to college, or buying a car.
Factors to Consider
Before you jump into alone, be sure to consider some things, such as offered interest rates, frequency of payments, how soon you’ll get the loan, and the penalties, fees, restrictions and any other relevant details. Don’t be afraid to ask your installment lender Mississippi a lot of questions before getting a loan.
Eligibility
So, how do you know if you’re eligible for an installment loan? Every lender is a little different, but there’s some generally accepted requirements. You must be 18 or older, have a steady source of income, live in the state in which you’re applying for a loan, provide your Social Security number and other identification. Also, you must have a checking or savings account.
An installment loan is a loan that you pay back in monthly installments. Lenders usually offer loan amounts from $100, with terms from three months. Now that you know a little bit more about installment loans, take some time to think about. If you’re ready for one, start applying for an installment loan today.