Installment loans are the other type of short-term loan and some people usually muss them up with payday loans. Installment loans contain fix regular payments that include principal, interest and other charges such as fees and credit insurance premiums.
The amount of installment payday loans is bigger and sometimes makes up to several thousand dollars. The repayment period starts with six months and ends with several years.
Payday loans with installment payments offer very high APRs – from 25% up to 100% (depending on the company and borrower’s financial circumstances). Sometimes the real APR turns to be higher than the one mentioned in the contract due to different credit insurance plans that usually aren’t required.
Installment loans for bad credit exist but every borrower has to be ready for the unpleasant loan terms. If you have bad credit but still need money, payday installment loans shouldn’t be the only variant to consider. They might help but there is more affordable and reasonable financial aid. Some of the loans can contain APR as high as 150%.
Payday installment loans are usually loans secured with collateral. Unsecured loans will cost more.
Before making a deal, you should read the contract carefully and find out about all of the fees and other additional payments.