You will not need to worry about your credit. Many of the people who come to us have lagging credit scores. However, they have also come to find that their credit scores improve once they are done paying off their installment loans.
We get that sometimes your credit gets a beating when those little (or even big), unexpected financial problems start to stack up. It is also difficult to live in America without credit. However, if you need to rebuild your credit, but you can’t get approved for credit, it becomes a vicious cycle. We want to give you an opportunity to rebuild your credit, one credit point at a time if necessary.
You might be familiar with other loan types like payday loans or title loans. Many times, those kinds of loans can also help out those who are experiencing financial distress. However, the repayment plans for those type of loans are different from installment loans.
Typically, you pay those loans off in a lump sum. Usually, but not always, your repayment period is 30 or 60 days. Once your loan is paid off with that lender, you are free to borrow again. (You create a new loan and loan contract.)
Installment loans are loans that have a longer repayment plan, ranging from six months to five years or more. Unlike a line of credit, the end date isn’t flexible. You make payments on an installment loan until the amount you owe is paid off. Your home’s mortgage or your car payment is an example of an installment loan.
A line of credit, on the other hand, allows you to keep borrowing money on the same line of credit, without an end date. Credit cards are a good example of this type of arrangement. As long as you don’t cancel your credit cards and your payments are up to date, you have an open line of credit you can borrow from.
Our installment loans have a beginning and an ending date plus a repayment schedule in the middle as per the rules and regulations set down by the financial industry. These rules and regulations were put together by lawmakers here in Illinois as well as by lawmakers in Washington, D.C.
As with other types of loans or lines of credit, your installment loan comes with a contract. This tells you the terms of loan plus the dates when each payment is due. You can also read about the interest rate on your loan and any other important information regarding your loan in that paperwork.