A recent study by CNBC revealed that most Americans don’t have the safety net of cash, and just 40% of Americans are in a position to cover a $1000 unexpected expense. It means that most people would be in a spot if they were faced with an emergency like medical treatment of a loved one, a house repair, loss of a job, or any other.
In such situations, they usually resort to quick payday loans that give quick access to funds they need. However, not everyone can pay back the entire amount in a lump sum (i.e., principal plus interest). That’s where installment loans come in.
A responsible installment loan is a smart solution for responsible borrowers wherein you can pay back the loan in fixed installments over some time. Here are the significant benefits of installment loans.
Most payday loans become due in full on their due date. This can create pressure on a lot of borrowers putting their finances in jeopardy and push them further into debt. If the borrower is responsible, installment loans can provide an easy way out. Installment loans require you to repay the amount in equal monthly installments over a while.
The borrower knows the amount they have to pay every month so they can arrange funds accordingly. Moreover, the loan tenure ranges from months to years, so the amount is further divided into smaller payments every month. It is easier to manage from their monthly income and not put pressure on the borrower.
High Loan Amount
Because a responsible installment loan has longer loan terms, lenders are in a position to offer higher amounts than in case of payday loans. For a lot of borrowers, these higher loan amounts provide them enough funds to meet costlier expenditures like medical treatment, car or house repair, etc.
Quick Access to Funds
An additional benefit of installment loans is that it gives you quick access to funds. You can get funds as fast as the same day or 24 hours. That way, you can meet any emergency with ease and then pay back the loan in easy installments over some time without any financial strain or pressure.
Be Prepared for Emergencies
Emergencies seldom come with a warning. It often catches you off-guard, unaware, and can put you in a spot. Sudden emergencies like a major repair work at home, an unexpected medical illness, or any other, installment loans enable you to meet them all with ease. The quick approval and processing ensure you have the funds when you need it.
Hassle-free Application Process
Traditional loans can take weeks to get approved and processed. Moreover, the lending criteria are quite stringent with elaborate documentation. On the other hand, installment loans have a simple online application process that takes a few minutes, and money will be disbursed within 24 hours. It does not involve hard credit checks by the lenders, either. It really can’t get simpler than this.
So, when an emergency rears its ugly head, and you need funds urgently, responsible installment loans can be the go-to solution for you, which enables you to meet the crisis at hand without straining your budget.