Personal Installment Loans – Get Cash Fast with LoanNow!
Unlike commercial loans that are primarily used to purchase equipment and pay for services related to running a business, personal installment loans are intended for purchases by individuals and households. However, there is nothing preventing someone from using a personal loan to bootstrap an entrepreneurial enterprise. In fact, one of the most distinctive features about personal installment loans is that there are few, if any restrictions on how they are used. Another distinctive feature is that there are several potential sources for obtaining personal installment loans.
Installment loans get their names from the fact that the repayment schedule is divided into segments paid over time. Other types of personal loans include car loans and mortgages. While these types of loans are secured loans, installment personal loans are signature loans that are guaranteed only by a signed contract between the lender and the borrower. While unsecured loans have many desirable aspects, getting the wrong type of personal loan, such as payday loans disguised as installment personal loans, could have detrimental consequences. LoanNow provides the advantages of unsecured loans, minus the hazards of payday loans.
The Pros and Cons of Personal Installment Loans
The flexibility associated with using personal loans is both an advantage and a disadvantage. On the one hand, many people prefer maintaining a sense of privacy about how they spend their money. Personal installment loans make it possible to maintain that kind of privacy. On the other hand, the relative absence of oversight associated with personal installment loans makes it possible to use the money for frivolous purposes that accomplish little more than putting borrowers into debt.
Good and Bad Lenders
There are also several potential sources for personal installment loans, including banks, credit unions and finance companies. The main drawback associated with these loans is that the applications process can be long and involved, and borrowers must have acceptable credit to qualify for a bank loan. If you’re facing a situation where you need money quickly, a bank loan might not be the best alternative, even if your credit is good.
Many payday lenders claim to offer personal installment loans. But that’s usually a misleading label at best. Installment loans provided by payday loan companies look and perform almost exactly like regular payday loans, with all the same advantages and disadvantages of regular payday loans.
How Do Payday Loans Fit In?
Conventional payday loans fall into the category of short-term loans. They are usually limited to small dollar amounts and have repayment periods that are matched to the next anticipated pay period of the borrower. Many borrowers receive payment every week or two weeks, which means that they could be expected to make payment in full within just a few days after receiving their loans!
According to the Consumer Finance Protection Bureau, for four out of five payday loan borrowers, this is impossible to manage. Instead, they are drawn into a cycle of partial payments and rollovers – with each rollover including new interest charges and administrative fees. Ironically, borrowers often find after several cycles of rollovers that they owe more than they originally borrowed, even though they have consistently paid on time.
The CFPB, along with several states, have stepped in to attempt to curb the predatory lending practices of many payday lenders. One type of legislation requires payday lenders to restructure their loans to lengthen their repayment periods and include multiple payments. But some unscrupulous lenders have attempted to circumvent this type of legislation. For instance, if a regulation requires installment personal loans to have repayment periods of more than 30 days, payday lenders often respond by offering 31 day loans with two installment payments.
LoanNow provides personal installment loans that are processed with the speed of payday loans, but have repayment periods like bank loans. We understand that when you’re faced with a financial emergency, you can’t always afford to wait weeks to receive a response from a bank. Our online-only application** procedure processes nearly all applications within 24 hours†. Once you’re approved, you could potentially receive your funds within minutes*, thanks to our innovative Instant Funding‡ technology.
But unlike payday loans, our loans feature with reasonable repayment periods similar to those of bank loans. LoanNow does not require collateral – not even your car title, like some car title loans do. LoanNow also says no to rollovers, so your payments actually decrease your remaining balance.
And while we don’t monitor how you spend the money you borrow from us, we do provide education and incentives to help you learn how to handle your money better and ultimately improve your overall financial education. In many ways, personal installment loans from LoanNow represent the best of all possible worlds!
Why not let LoanNow help solve your financial challenges?