As a general distinction payday loans tend to be lower value loans, usually not more than few hundred dollars up to a thousand, which are paid off typically within one pay period for the borrower. For larger amounts of several hundred to over a thousand, lenders may agree to provide online installment loans. The only difference is that the online installment loans may be paid out over longer terms, perhaps two or several more pay cycles, and there may be more flexibility in payment options.
Options For Repayment
Since online installment loans tend to more closely resemble a traditional loan, the lender and the borrower typically work together to determine a repayment schedule. This is not going to be a long as many bank loans, but this will depend on the total amount that is approved for the loan. You should have a good idea of how much you can repay per month and still meet all your current financial obligations.
While a longer repayment period for online installment loans may provide you with lower monthly payments than a shorter option, you will be paying more in interest. It is important to carefully consider this when choosing your repayment schedule. There is a limit as to how long the loan can be extended over but always try to budget for the shortest repayment period you can manage to limit the interest and fees you will pay.
The top lenders for online installment loans will always allow the borrower to make payments over and above the agreed upon schedule and amount. In this way you can cover yourself with a lower monthly payment over a long period of time but pay the loan off early without penalty.
This gives you that financial cushion yet also allows you to save on interest by speeding up the repayment schedule. Doubling your payment every other month or adding an extra 10% on each payment will make a big difference.
Always read all the information provided before considering online installment loans. They are a good option for larger cash needs without the need for a credit check. You will need to be employed, at least 18 years of age, and have a valid banking account as well as a minimum monthly income to apply. We have lenders available for all states that allow online installment loans. To see if you qualify visit our website at www.shorttermloans.com.
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