What are Short-Term Installment Loans?

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Installments loans are so often compared to simple short-term loans but every borrower has to know the real difference, as it influences the outcome of the repayment process and the cost of the loan.

So, installment loans are short-term loans that, though, have larger repayment terms than traditional short-term loans (from 6 to 60 months (5 years)). The possible sum to borrow is still bigger and makes up from $1,000 to $100,000. The main feature of short-term installment loans is the opportunity to pay in installments. Lender settles the size of every installment. Still, every borrower can negotiate with the lender and convince him to make a decision in his favor.

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The cost of the short-term installment loan can be very different. Firstly, it depends on the requirements of the certain lender. Secondly, it depends on the borrower: his creditworthiness and, of course, credit. That’s why short term installment loans no credit check and short term installment loans bad credit are in a high demand. Such loans exist and this is a great benefit for people, who can’t qualify for traditional loans due to the low credit.

Still, it’s crucial not to be attracted with the affordable loan terms. Sometimes these “attractive terms” are affordable on the surface only. In the result, the cost of the loan is much bigger than a borrower expects.

You can find the available option in banks and credit unions, among bad credit personal lenders, peer-to-peer lenders (marketplace lenders), auto loan lenders. A good idea would be to apply for short term installment loans online as the wide choice can hide tempting offers for borrowers.