Do’s and Don’ts of Installment loans
An installment loan is just another name for personal loan. There are many high quality lenders as well as small-dollar lenders offering installment loans. It is the prerogative of the borrower to chose the loan best suited to his/her needs and at the same time not get scammed by the unscrupulous techniques used by many lenders.
Installment loans are for everyone and not only for those with bad credit. As a borrower, be aware of:
Sub prime lenders aggressively marketing installment loans as low risk loans. Always gather complete details before borrowing.
So called lower APRs
Piggybacking credit insurance along with the loan
Lucrative’ offers to renew the loan
As a borrower, to stay smart:
- Use the term personal loans while gathering data. The term installment loans has been given a negative connotation by predatory lenders.
- Choose the most friendly interest rate. Most installment loans have fixed rates, if the market changes and the interest falls, you are stuck paying a higher rate.
- Avoid unforgivable conditions. Especially if it is a secure installment loan, be aware on the repayment status, as defaulting the loan might lead you to loose the collateral.
- Lenders might sneak in fees and different forms of credit insurance that increases your repayment amount. To avoid this high rate, review many options and choose the one most comfortable for you.
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