Money can be one of the greatest assets in life or it can be one of the biggest stressors in life. Therefore, taking out a loan can be a great option for the individual who needs extra time to come up with funds. Perhaps you just found out that your vehicle needs new brakes, or your roof has a leak.
There are now options to help you prevent from feeling more stress than you need in your life. The primary way to avoid stress, and to get what you need fixed right now is to take out a loan. There are various options for loans, but let’s talk about why taking out a loan that you can pay back in installments can improve your life.
1. A Loan Paid Back in Installments Has a Fixed Interest Rate
Anything can happen at any time. When a major car repair pops up, or you face unexpected home repairs, you can feel pressured to get the money fast. Taking care of your family is one of the most important tasks you have daily.
Health issues are also unexpected. A borrower could apply for a credit card, or even a home equity loan, but those often take awhile to go through the approval process. Therefore, it is wise to consider applying for any installment loans. These loans have numerous benefits, but the first one is a better approval time. They are often approved faster than a traditional bank.
It’s all about determining what loan type is right for each individual and taking the steps to apply so it’s easier to get the money as soon as possible. You can have peace of mind knowing that this option is available to you, and it’s a simple way of taking care of the loved ones that depend on you.
2. An Easier Application Process Makes a Difference
Everyone wants things done faster, but what about completing your application? Loan applications can take forever to fill out, but those that are labeled as installment have an easier application that is much shorter to fill out. They are not attached to collateral, meaning there is less involved, and less information is needed.
No information about your home is required, and no information is needed regarding your will or assets. This type of application keeps it simple, and there is also no need to include information regarding retirement or investment accounts. This application should take no more than 15 to 20 minutes to complete.
3. Installments Means Fixed Interest Rate
Money borrowed on installments means that it’s going to have a fixed rate. There are many different types of loans that offer variable rates, or they increase interest the longer the loan is open. It can be confusing and frustrating to deal with a loan that has a changing interest rate.
There is no mystery when it comes to installments. There is one set loan amount and one fixed rate. Therefore, these types of loans are straightforward. Many who opt for this type of loan find that they are easier to work with.
4. A Positive Benefit is Dealing with One Lender
Traditional banks have their own application process as well as their own approval process. One of the most positive benefits of installment type loans is they are typically issued by one lender. When one lender is involved, it means less dings on the applicant’s credit report, as well as all paperwork issued with the name of lender only.
Having less hits to credit is a positive and dealing with one lender will have a positive impact on a borrower’s life as well. The ability to call and speak to the same individuals in the same building can be a comforting thought as well. It enhances the lending experience for everyone.
5. You Can Deal with a Brick and Mortar Establishment
Dealing with a bank is a common task today, but those who can go in and deal with a brick and mortar establishment can feel better meeting with someone face-to-face. Applying online for loans that are short-term and charge exorbitant fees can start to feel uncomfortable when a borrower can’t talk to the same person.
It also removes the guesswork when borrowers have questions. Dealing with an online company produces a lot of unknown factors. The guesswork can be removed when a borrower can deal with individuals they can see and talk to directly.
6. You Can Use the Money for Unexpected Emergencies
Borrowers can always use the money how they see fit when they apply for a loan, but it’s best to only apply for what is needed and use it wisely. Facing an unexpected health problem and medical bill can be resolved easily when a borrower has access to the money without a fluctuating rate. The unused portion can be used to make a payment towards the principal.
7. There Are a Wide Range of Loan Amounts
Every lender will have their own loan amounts to work with, but it can have a positive impact on the borrower’s life when they are able to access funds in a wide range of amounts. Some borrowers may only feel the need to borrow just a few thousand dollars up to $10,000. Having more options offers peace of mind.
8. Taking Out a Loan Can Help You Build Credit
Everyone must start somewhere to get somewhere, and this is true when it comes to building a credit history. Taking out a loan can have a positive impact on the borrower’s life by helping them build a credit profile. Starting with small loan of just a few thousand dollars is a great place to start. It is essential that payments are made on time in order to get an approval for borrowing more in the future.
It is also essential that on time payments are made so that approvals can be given for loans for other items in the future. Home loans and other loans may not be approved if a small loan with fixed payments has not been paid as agreed. Following the guidelines of borrowing money from any lender is important.
9. Paying a Loan as Agreed Can Improve Your Chances for Better Insurance Rates.
Those desiring the best rates for car insurance and private health insurance policies should know that how they handle smaller loan amounts is critical. Paying these loans on time can have a positive impact on credit profiles, and this means that those who pay as agreed are most likely going to qualify for better rates on car insurance and health insurance as well.
10. On Time Payments Can Positively Impact a Job Application
Paying a loan back on time may grant borrowers better insurance rates, but it will also grant a better chance of getting a job. Starting in 2007 when the economy crashed, lenders began looking more closely at the criteria for which borrower’s were getting approved for loans. When credit guidelines were being tightened, it also meant that credit would be utilized to determine whether someone gets hired.
Credit profiles have been shown to exhibit certain patterns about those borrowing money. Those at greater credit risk were linked to those who didn’t perform as well on the job. This is another reason that insurance companies offering auto insurance gave higher rates to those at risk than those who pay loans back on time.
11. These Loans Can Help You Get an Education
One of the most popular reasons to get a loan today is to pay for a college education. Those students who want to go onto a career in the medical field, business, become a teacher, or even a business analyst will need to attend college. Getting a degree is tough work but getting the money to pay for a college education takes some work also.
Some students may be able to get a scholarship that pays for part of their tuition. Those who get a partial scholarship will need to seek funding to help cover the additional cost of college. Some families may not be able to cover the rest, and when this happens, it’s wise to research the ability to get just what is needed to make up the rest of the tuition.
When other types of loans may not meet a student’s needs, alternative loans are available to assist with this. Getting an education can help secure a good job in order to pay back the loan and even purchase a home.
Emergencies often arise for different reasons, and they are called emergencies because they are unexpected. There are many reasons to choose specific types of loans. Loans that are awarded for a set amount of money at a fixed interest rate are the best type of loan to apply for. Those who need a few thousand dollars or more may benefit from a loan they can pay back in installments.