Long-term installment loans are the same as traditional short-term installment loans but the repayment period is longer – up to several years. Most of the loans carry interest but it’s possible to find interest-free long-term installment loans. Of course, if you are looking for no credit check or bad credit installment loans, you will face high interest and less profitable loan terms.
The main use of these loans lies in consolidating credit card debt for a lower interest rate. Installment loans have another benefit over credit cards. Even when you make a little payment, you are gradually paying off the principle. When you do so with credit cards, the contribution is very small, almost invisible.
Long-term installment loans online and from the local lending institutions usually offer lower interest rates but the loan terms are stricter. Therefore, not every bank or credit union will approve loan request from the borrower with weak creditworthiness.
In such cases, borrowers often apply to long-term installment loans no credit check direct lenders. These entities deal with borrowers without mediators and don’t charge additional fees for extra work. This is a sort of economy but if you are looking for no credit check long-term installment loans, you should be ready to lose some money.