Dec 02, 2014 Sean Albert
In this post-Global Recession world, it's not uncommon for individuals from any background to have money troubles, especially during this time of the year. As the holidays approach, many people stretch themselves a bit too thin.
Just consider how easy that is - say you've saved enough money over time and finished your gift shopping early for your family and friends. If you then encounter a surprise expense, like a medical bill or a car repair charge, you might not have the money left in savings to cover it.
This is why many people turn to alternative credit for help. One option they have in their wheelhouse is an installment loan. This involves borrowing a sum and paying that money back in predetermined chunks. Aside from the obvious seasonal benefits, there are a lot of advantages that accompany seeking out these loans.
1. Fast service
If consumers need money quick, they're limited in their options. Sure, they can always ask friends and family, as well as check out traditional possibilities, like bank loans, but the chances of getting the amount they want immediately are slim.
As Green Touch reported, that's usually not the case with installment loans. Granted, people need to meet the criteria set by lenders and they must agree to pay the sums back in segments, but installments, whether they're granted by car dealerships or other companies, are known to be quick, flexible and reliable.
2. Helpful when chasing a perfect score
Obtaining a perfect consumer credit ranking is next to impossible, especially these days, when many Americans have gone through hardships over the last decade. However, it's not an unattainable goal.
According to The Motley Fool, one thing individuals need to attain a high score is an active installment loan. This shows a person's creditworthiness and ability to pay back a sum. That being said, this is certainly not the only thing people need to have lined up - first, they must have a clean history and a revolving credit account with a balance, the source noted.
3. Longer terms mean less burden
Another big advantage consumers may be interested in learning is the fact that because installment loans are usually long term solutions, the owed sum is lower on a monthly basis, Loan.com reported. Not only are the payments predictable - which can be good for both the lender and the borrower - but they tend to be low because they're stretched over time. This can ease the burden for the individual who had to borrow the money.