Thursday, July 15, 2019 /
01:30PM / Content By Sarah Williams / Header Image Credit: The Tech Mesh
With the advent of the internet age, the financial industry has taken quite some changes. Easy access to financial aid, such as loans has been made easier than ever. What more, with the competitive nature of the many online entrants into the market, banks and other micro-lending institutions are making peace with the reality that they need to come up with more creative products to keep the market happy.
Online lenders have managed to do this quite well with the varied products that seem to pay attention to the immediate needs of the common man. One such product is installment loans. It is common knowledge that unexpected expenses are hard to meet, especially given the usual monthly bills. In such cases, short term solutions become necessary to help salvage the situation. This is where online installment loans come in.
Installment loans with direct lenders become really essential when one is looking to take up a loan that has a long repayment plan. Let try understanding what these loans actually look like.
What is an installment loan?
Two things define an installment loan, and these are its ability to access it quickly and the long durations you can have to repay them. A more refined definition for its a loan that can be repaid through multiple payment schedules, with due dates that fall on the borrowers pay dates. Direct lenders are among the most reliable and popular options when it comes to accessing these loans.
While installment loans are generally characterized by having the ability to have long repayment options, there also exist short-term installment loans. Such loans can be repaid within a few months or even years. These loans mostly go into catering for expenses such as medical bills, as well as home maintenance, among others,
When it comes to long term installment loans, these are common with mortgages and are mostly paid within durations of 20 to 30 years, as is dictated by the repayment terms. Unlike many short-term loans, the long-term ones are secured by pledging collateral.
To understand installment loans better, we could contrast them with payday loans. While they all help you to access the money you need quickly, they are differentiated by their repayment terms. For a payday loan, it has to be fully paid off on the next pay date. Whereas for an installment loan, the amount to be repaid is divided and paid off in subsequent scheduled pay dates, allowing for just a small amount of the due amount to be paid off through a given series of dates.
Getting installment loans from direct lenders
Getting installment loans with direct lenders is the most reliable option. It is no wonder itâ€™s popular among the many options. Direct lenders are simply loan providers that directly link up with the borrower to issue the loans. This means that the borrower does not need to go through a broker for such a service.
Knowing who to go for can be an uphill task if doing this for the first time. However, with the available information on the internet, it is possible to engage it and use your best judgment to arrive at an appropriate option. For instance, reviews are a good place to start. As with all industries, there are direct lenders that will feature in different lists as being among the top providers of such services. It is wise to go further and look through the reviews that have been given regarding such services.
It is important to ensure that they are licensed by the state to carry out direct lending of installment loans. While some lenders may have licenses for some states, they may not necessarily have the license for the state youâ€™re in, therefore ensure that you can get evidence of this before proceeding further.
Go ahead and even call them to ascertain that their terms work for you. Most often, with the right amount of due diligence, you should be able to arrive at the right provider without risking to fall into the hands of the wrong options. If youâ€™re stuck at where to stay, MoneyKey is a good option to consider, given they are licensed in many states.