Many people buy goods on credit and installment loans, without thinking what the difference is. However, despite the fact that both instalment loans and credit are aimed at solving financial problems at the expense of borrowed funds, there is a significant difference between these products.
Online installment loans and credit:
what is the difference and how can I find installment loans near me?
The main difference between online installment loans (instant approval is mandatory) and credit is the simplicity and speed of processing.Terms of registration. The parties to the contract of payday installment loans are the Seller and the Buyer, in the case of a loan agreement – the bank and the borrower.
Best installment loans are issued only for goods and services, a loan can be obtained in cash. The contract of monthly installment payday loans is drawn up without preliminary applications and bank approvals, but until the full calculation, the goods are pledged to the seller and in the event of non-payment of obligations, the seller reserves the right to take the goods in repayment of the debt.
During first personal installment loans percentage can vary from 0 to 30% regardless of the type of contract.
Interest rate. Long term installment loans are provided for a minimum percentage or no interest at all, for a loan interest can be up to 25% per annum.
Contract time. Installment loans for poor credit are issued for a period of six months to a year, while a loan agreement can be for up to five years.
The contract of purchase of goods by easy installment loans often implies a fee for additional services. For example, when buying a mobile phone, the store can impose a mandatory installation of software, when purchasing household appliances, the buyer may be offered to pay for the service of equipment for a year ahead and necessarily insure the goods. Small installment loans agreement can only provide insurance, which, if desired, can be avoided.
Early repayment. Early repayment under monthly installment loans agreement does not entail any sanctions, while at the same time, some banks provide fines for early repayment of the loan.
What to choose a loan or installments:
installment loans company.It is impossible to say unequivocally what same day installment loans product is more profitable. For people who have a bad credit history, instant installment loans can become the only possible option. For those who do not have the opportunity to repay a large amount for a short period, payday installment loans online are better to make out a loan. In any case, before receiving a loan or short term installment loans, you need to carefully study the terms of the contract in order to avoid unplanned overpayments and fines in the future to find best online installment loans.
A cursory study of top advertising proposals, a loan for any goods, shows that absolutely all such “advertisers” (even large federal networks selling household appliances and electronics), under the term “guaranteed installment loans”, in fact, find a proposal to issue a contract through a partner bank. As for the financial benefit, you should not think that in the case of instant approval installment loans, even with the prefix “without overpayment,” you will save on bank interest.
By no means! As a rule, in this case, all prices in the store are indicated with the reservation “when paying in full for cash, a 40% discount”. Accordingly, for other cases, a discount is not provided. Here you have hidden interest: get flex pay installment loans and pay immediately in cash – buy goods cheaper, with a deferred payment, you will pay more. Use only checked services that provide guaranteed installment loans direct lenders only.