If you are looking for a repayment plan which has flexible options to offer to you, then one of the best options that you can consider is instalment loans for bad credit. Instalment loans are helpful because you can get access to cash easily and quickly, and you can repay the amounts in smaller portions depending on your comfort.
Especially for those who are struggling with the economic recession, it may be complicated to secure credit easily. This is even more so the case with those who have a bad credit history. However, with access to instalment loans such as the reputed loans from slickcashloan, you can make your life easy and obtain financing with minimum effort.
What exactly are instalment loans?
Before jumping into the advantages of instalment loans, it is helpful to first examine and understand what these loans are. As the name suggests, instalment loans are those loans which you can repay on an instalment basis. This includes both the principal amount to be repaid as well as the interest that you need to pay.
While the pay-out of instalment loans is on a lump sum basis, repayment happens on an instalment basis. Typically, the instalment payment schedules are either monthly or fortnightly, depending on the lender and the terms of the borrowing.
Are instalment loans unsecured or secured?
An instalment loan can either be secured or unsecured depending on which lender you are choosing to borrow the money from. Further, your credit history can also play a role in determining whether you are eligible for an unsecured instalment loan. A secured loan typically is provided against an asset or a property, such as your vehicle or your house, as a form of collateral. In a secured instalment loan, a lender usually tries to verify whether the property that you are pledging as collateral to borrow funds belongs to you.
On the other hand, a lot of people today, especially those with bad credit histories, prefer to take an unsecured instalment loan, because you do not need to pledge any asset or property as collateral to secure funding. While the interest rates for such loans may be marginally higher than secured loans, they are a ready and safe source of financing for someone who is looking for financial assistance.
Another advantage of an unsecured instalment loan is that your asset will not be seized in case you are not able to meet the repayment schedule. Therefore, it offers a security net and allows people to renegotiate the terms of their loan if they are faced with any contingency that does not allow them to repay the loan on time.
Some advantages of instalment loans for bad credit
If you are considering taking an instalment loan, here are some of the main advantages:
- You can fund a big purchase even with lower liquidity.
- You can factor the loan into your monthly budget and plan accordingly.
- The process is quick and easy.
- It is available to those who do not have assets to pledge as collateral.
- You can pay off the loan early with minimal pressure.