There are several different types of loan options and short term installment loan lenders specialize in one of the types of loans. Understanding your options when you need money can help you in making the right choice for your needs. There are a few definitions that you should become familiar with before you start your search for cash so that you can make an informed choice. Each option has its benefits and of course a few cons.
Here are some terms you need to get familiar with if you are considering taking a loan:
* Short term installment- this type of loan is able to be repaid in a short period of time. Typically this is one of the easier loans to secure because it is based on your income and your ability to re-pay the loan quickly.
* Long term installment-this type of loan has a longer re-payment period that requires a great deal of commitment and typically relies heavily on your credit score to secure.
* Term- the term is the length of time that you have to pay the loan
* Interest- this is the amount of money that you will pay to take the loan
* Principal –this is the amount of the money you borrowed
* Lender- the company that is providing the loan
* Fees- any charges that are associated with the processing of the loan
* Processing- the amount of time it takes for you to get your loan money
Why Short Term Installment Loans May Be Best for You
Short term installment loans are a great source of quick income when you really need it. The terms are somewhat flexible and the ability to secure the loan is typically easier. If you have some credit issues but have the income to pay back the loan many lenders that specialize in this type of loan will overlook your credit issues. The processing time from application to deposit of the funds can happen in about 24 hours. This type of loan can be referred to as a “payday loan”. You get the money you need when you need it and the re-payment can be spread out over a payday or two. It is an easy solution that a lot of people choose when they need cash in a hurry. Long term installment loans can be spread out over years or months and they can become a real burden to pay back.