Whether you’re in need of some money to help cover your new car, home, or something else, a loan can help you pay for costly expenses without plunging you into a cycle of never-ending debt. With so many different types of loans out there, you’ll have to do your research and learn which type of loan best suits your personal needs. When you’re applying for a loan, you need to be sure you’re working with a legitimate lender who’s working with your best interests in mind. Personal loans and installment loans both provide immediate funding, but have many differences that you ought to consider before applying. Let’s take a look at personal loans versus installment loans to help you decide which type is the best for you.
What is a Personal Loan?
A solid source of quick cash, personal loans can be taken out for any number of reasons. From paying for a wedding to covering the costs of a car repair, a personal loan provides you with quick and legitimate money. Your personal circumstances will influence the type of personal loan you eventually qualify for, so you need to be familiar with the varying types of personal loans and how they differ from one another and their pay-back periods. Most importantly, you’ll only want to apply for a personal loan that will lighten your financial load without creating money problems down the road.
What is an Installment Loan?
An installment loan is simply a larger personal loan paid back over a pre-defined period of time. Personal loans vary in repayment terms, interest rates, charges or fees and are categorized into secured personal loans or unsecured loans. Installment loans can be both secured and unsecured. They are normally paid off over an extended period of time with a lower monthly payment vs a short-term loan that helps balance finances without exposing you to high degree of financial risk. Online installment loans are normally based on the individual’s personal needs and credit history.
If you’d like to learn more about personal loans or installment loans, contact the experts at GetMoney.com to be connected with a trusted lender.