When sudden and unexpected expenses arise, installment loans offer a quick and easy way to get the money you need, when you need it. But before you apply for one, there are a few things you should know about them.
Generally, installment loans are easier to secure than a traditional loan from a bank — When you apply for an installment loan at Security Finance, branch personnel will typically just need:
- your current (and possibly previous) residence
- your employment status and history (or other info on how you’ll get the money to repay the loan)
- your Social Security number
- your monthly expenses
- your authorization for a credit-bureau report to be run
They are not payday loans — Installment loans typically allow for more money to be borrowed, longer terms for repayment, a lower cost of borrowing and more flexibility than payday loans.
They do carry an interest charge, but the corresponding APR can give a distorted perception — Because the term on an installment loan is typically much shorter in duration than that of a long-term loan, when the APR is calculated, it can sound much more costly than the actual interest owed. For example, let’s say you borrow $100 and agree to pay $1 in interest on the loan. Seems fair, right? But when the APR that the $1 in interest represents is calculated, it will vary greatly depending on the loan’s term.
- If the $101 is paid back in one year, the APR is just 1%.
- If it is repaid in a month, the APR jumps to 12%.
- If the loan is repaid in a week, the APR is 52%.
- And if the loan is repaid in a single day, the APR is a whopping 365%.
… So, while the loan costs just $1, the APR fluctuates greatly depending on how quickly it is repaid — making it a poor way to measure the true cost of a short-term loan.
Minimum and maximum loan amounts vary by state — At Security Finance, minimum installment loan amounts vary by state. Visit our loans page to see the loan amount that you could be eligible to receive.
Installment loans are fast — Once an application is approved and all the information supplied is verified, a lending decision can typically be made within an hour.
Installment loans are versatile — The reasons people take out personal installment loans are wide-ranging. Some of the most common reasons borrowers take out personal installment loans include:
- unexpected expenses
- multiple unanticipated bills landing at once (for medical emergencies, auto repairs, etc.)
- irregular and unpredictable workloads/income (Sometimes you’re busy with work, other times you’re just not.)
- a need for an advance on a fixed income
- unforeseen opportunities (Maybe you need a little extra cash to buy a rare find or fund a spur-of-the-moment adventure … and you know you’ll have the money soon, but you need it right now.)
At Security Finance, we offer a range of personal installment loans that can be secured quickly (usually within a single day) and with more flexible options than those typically found at a bank — all without the need for a bank account or a high credit score. Further, our installment loans follow set terms and offer affordable monthly payment plans, with no balloon payments or prepayment penalties.
Visit securityfinance.com today to learn more about all of our loan options — and to find the one that’s right for you.