Personal Installment Loans: What to Know Before Applying

Applying For Loans

December 10, 2020

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If you’re considering taking out a personal installment loan but don’t know all the details, you’ve come to the right place. World Finance offers personal installment loans from $450 to $10,000 to help you get back to focusing on all the good in life. But first, we’ve gathered a few key things to know before applying.

Why a personal installment loan?

A personal installment loan is a set of borrowed money that’s paid back in equal monthly amounts over the life of the loan with accumulating interest. If your credit score isn’t in great shape, a personal installment loan may be an opportunity to build it back up, since lenders report payment behavior to credit bureaus. If you’d like to see how a personal installment loan holds up against other options, this blog post goes into the pros and cons of three basic loan types available to borrowers with imperfect or zero credit.

You can borrow for many reasons.

If you need a loan to cover unexpected expenses, like medical bills or car repairs, then applying for a personal installment loan might be a good idea. If you’re using this loan to pay off another loan, you might want to think again. This will only put you on the path to accumulating a mountain of interest that could be more trouble than it’s worth.

Some common reasons you might take out a personal loan are:

  • You need money for an upcoming expense that you are planning for
  • You want to give holiday gifts without putting it on your credit card
  • You have an emergency car repair
  • Your dog has an unexpected vet bill
  • Unexpected school supplies or fees

The loan needs to be paid back monthly.

We know the thought of getting a loan to help you pay your expenses is a helpful option, but be sure not to bite off more than you can chew. Figure out if your budget can afford to make monthly payments for the entire life of the loan. At World Finance, we always work with our customers to make sure the monthly payment fits into their budgets after factoring in life expenses like rent, groceries and utilities.

It can take a while to pay back the loan.

Depending on the amount you’ve borrowed, your monthly payment amounts and your interest, a personal installment loan can take anywhere from 6 to 46 months to pay off. Be sure to ask about your particular timeline when you apply or speak with a loan professional about your options so you know what the next few months, or years, may look like for your finances.

We are always here to help.

We understand that applying for a loan can be confusing and a bit intimidating. But World Finance is here to help you every step of the way. Once you’ve researched enough to feel comfortable about applying for a loan, gather your documents together and start the application online, or head to your nearest World Finance branch. Our team members will guide you through the application process and answer any other loan-related questions you may have.