What Good will Installment Loans do you?
What are Installment Loans?
Loans are something that people from all walks of life are aware of. Even if someone has never had to take a loan, which is a highly improbable situation, they would know the basics of loans through different forms of media. The information about diverse types of loans, such as home loans, education loans, or auto loans are fed to us through TV, radio, social media, and newspaper advertisements. So now, when we get calls wherein the person on the other end is offering us a loan, we don’t get surprised.
All loans inevitably fall into two categories. They are either installment loans or line of credit. An installment loan
is a loan in which there are a fixed number of scheduled payments for a set duration.How Do Installment Loans Work?
How installment loans work can be explained with an example. For instance, if someone wants to borrow $1,000 for an emergency and they take out an installment loan that requires them to pay the amount back in 24 months at a 25% interest rate. In an installment loan, they would get a $1,000 loan and then pay regular monthly payments of $53.37 for 24 months. A borrower can choose to repay the loan amount through many smaller payments or a few bigger payments.
Analysis of Installment Loans
Installment Loans are unsecured loans wherein you can borrow up to a maximum amount that is decided according to which state you reside in. The repayments are made via a series of fixed amounts that last till a pre-decided length of time. Installment Loan repayment terms are fixed in and have to end at a certain time.
Flex Loan over Installment Loans
Installment loans are a good option for people who need a small amount of money as a loan. Certainly, better than payday loans, installments loans still do have a better alternative in the form of Advance Financial’s Flex Loan
. With Flex loans, you get a credit limit and you can withdraw any amount of money you need, within your credit limit, of course. Flex Loans always come with flexible repayments. Unlike an Installment loan which is a one-time cash advance, you can continuously draw on your line of credit and only pay interest on the amount of money borrowed for the time borrowed. Don’t need the cash anymore? Pay it back with no prepayment penalties like some Installment Loans need, and always have your line of credit available.
Summarizing, Advance Financial offers Flex loan up to $4000 as a line of credit, more than the installment loan limit in many states. Flex Loan allows you to borrow the amount you need and the extra money remains in your line of credit that can be availed whenever you need it. Flex Loans operate with flexible terms and a borrower is allowed to pay back the loan on their own terms. Unlike Installment Loans, Flex Loans keep you line of credit open, thus allowing you to withdraw extra cash whenever you need.