Top 7 Reasons to Take Advantage of an Installment Loan

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A short-term installment loan is a great way to bridge the gap between a temporary need and expected finances. The following are the top seven reasons for you to consider using this convenient option.

1. You need flexibility

In a lot of ways, a short loan could be called a “your term” loan. For Great Plains Lending loans, for example, you can choose:

  • The amount of the original loan
  • Whether to have your funds directly deposited
  • The number of installments
  • The frequency of your payments
  • Whether to make payments via EFT
  • Whether you want to roll it over into another term

This provides a tremendous amount of flexibility that a traditional loan simply cannot.

2. You have an emergency

Life ebbs and flows, but you can severely limit the repercussions of temporary shortfalls by being proactive. According to Sarah Baker of WAHM.com, a short-term installment loan may be used to cover emergency situations, such as repairing a computer you need for work.

Other emergencies may include unexpected medical expenses or car repairs. Unless you have a healthy savings account, even a simple setback can cause big financial problems. While loans should be used carefully, there are some situations when you will need money quickly and without a number of hassles. In these cases an installment loan can be a good option.

3. You only need a little bit for a little while

If your payable is a month out of sync from your receivables, an installment loan is the perfect way to get you realigned. In life, there are often situations that may require a little bit of cash for a short duration. Paying back the loan in easy installments makes your life more manageable and may make the difference between merely surviving and thriving. Consider:

  • School
    • Paying that last quarter’s college tuition
    • Getting a laptop for your homework
    • Purchasing your books
    • Paying for tutoring services
  • Moving expenses, such as a truck or movers
  • Buying a used, economy car without having to hassle with a dealer
  • Unforeseen licenses, fees, or permits

When life hits you hard and you know you’ll have the money shortly but not at the moment, it can be a good idea to take out a loan to help you get through the tough spot. Remember, borrowing is an emergency measure and should not be looked at as a way to live, only to get past the bump in the road.

Photo Source: DigitalPhotos

4. You are busy

Have you ever applied for a traditional loan through your bank? The paperwork alone may take hours – even days. Often, you do not get an answer right away. Meanwhile, you are not meeting your needs.

You may apply for most short-term loans on the spot – some even online. You get an answer immediately and may have the money in your hands the same day or deposited into your account within 24 hours.

Your payments may be set up to automatically withdraw from your account, so you save time with no trips to your financial institution and no writing or mailing checks.

5. Your credit isn’t great, or not yet established

A lot rides on your credit history. A divorce, job separation, late payment, recent move, or bank error may make it difficult – if not impossible – for you to get a credit card or other type of loan.

An installment loan allows you to get and use your money without extensive credit checks. All you need is a steady income (i.e., the ability to pay it back in a timely manner) and a checking account in good standing.

6. You don’t have, or don’t want to use, collateral

A short-term installment loan takes away the need to risk your business or property by putting them up as collateral, as none is needed. You may take care of your immediate financial concerns without getting into a long-term relationship.

7. You appreciate consistency

Installment loans offer reliable payment structures with predetermined interest rates that do not fluctuate with the market. You know exactly how much you will be paying back before you even agree to take the loan. You also know when each payment is expected, how long it will take you to pay off the entire amount owed, and what your options are for paying it early.

All of these things combine into an easy-to-understand agreement that gives you the ability to plan and budget without fear. A short-term installment loan offers a quick and easy solution to your temporary financial issue. Having such a powerful tool in your toolbox offers you flexibility and peace of mind whether managing a family or running a business.