What is an Installment Loan?

Installment loans are loans that are repaid, with interest, over a set amount of time. In the case of mortgages the term could be as much as 15 to 30 years, while other types of installment loans could be higher interest and shorter term. These are better types of loans than the payday loans, credit card loans, or title loans.

The downside to these types of loans is the fact that most of them come with higher than average interest rates, and often the interest rate will increase with the longer duration of the term.

Conditions are often disastrous to borrowers who already have bad credit, as some of the fine print may make additional requirements that could lead to a loss of personal property. Beware of those offering these types of loans without a credit check as they are some of the chief culprits in providing hidden fees and charges in the fine print.

So what can you do if an installment loan is the only loan you qualify for? Read the fine print, or if that isn’t doable, receive the installment loan from the bank or a reputable institution, not online. Online offers are rife with unscrupulous predators that can not only slap you with horrible interest rates, but may very well compromise your identity.

Check with the Better Business Bureau before proceeding with any type of installment loan and read reviews online about the company.