If you’re thinking about getting a personal installment loan to bridge some unexpected expenses, chances are you have a few questions (hey, we can’t all be loan experts). By doing a little research, you can start to picture what kind of loan is right for you. And even though our experts are here to help you every step of the way, it can’t hurt to get a head start. We’ve compiled 5 key loan-related questions below to help you save a little time in your search, so you can get back to showing those finances who’s boss.
1. What exactly is a personal installment loan?
A personal installment loan is a set of borrowed money (typically between $500-$5,000) that’s paid back in equal monthly amounts over the life of the loan with accumulating interest. The consistency of payments is one benefit of personal installment loans because it allows you to plan the payments into your monthly budget. No surprise payments here!
Taking out a personal loan can also help you build your credit score. Because World Finance reports payment behavior to the credit bureaus, making on-time payments and fully paying off your loan can boost your credit score, making it easier to qualify for lower interest rates on larger loans. If you’re considering an auto loan or a home mortgage loan in the future, using a personal installment loan to build your credit score could be a great place to start.
2. What would I use the loan for?
Let’s be honest, life tends to throw a few curve balls our way. A personal installment loan is great for covering those unexpected expenses like car repairs and surprise medical bills. Spreading those expenses out over small, easier-to-pay installments can be easier on your budget and help you plan for the future.
One thing you should never do is use a personal installment loan to pay off another loan. This can lead to a debt cycle that’s difficult to get out of. Instead, there are tons of reputable debt counselors who are happy to help you get back on track. Universities, Military Bases and Credit Unions usually offer resources to help you tackle your debt. Check out the Federal Trade Commission site to learn more.
3. How do I pay my loan back?
It’s important to remember that everyone’s financial situation is different. At World Finance, we know one loan doesn’t fit all, so we’ll work with you to create monthly repayments that work with your budget. We’ll also factor in all of life’s other expenses – like groceries, rent, utilities and car payments. You can pay your bill online, visit us at your nearest branch, or call us at (844) WORLD-15.
4. When will my loan be fully paid off?
Because we tailor each loan to our customers, payments change based on the amount borrowed, the monthly payment amount, and the interest rate — although repayment timelines typically fall between 4 to 46 months. When you’re approved, one of our team members will work with you to create a personalized repayment timeline.
Plus, when you get a loan from World Finance you don’t have to worry about early repayment fees or “balloon payments” at the end of the loan. A loan from us is a consistent monthly payment for the entire life of the loan.
5. Where should I start?
Researching a lender is always the first step. When you take out a personal installment loan, you should always choose a lender you feel comfortable with. Do research, read the terms, and don’t be afraid to ask questions. At World Finance, our team members will guide you through the application process and answer any other loan-related questions you may have. We’re here to help however we can, and trust us, we’ve heard it all!
Here’s to the good ahead.