Can’t Afford to Pay? 4 Ways An Installment Loan Can Help

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Installment loans can be a great financial tool in many helpful circumstances. It’s vital, however, that the terms and conditions of its repayment make sense to you, and that your budget accommodates them so that you pay back the loan in time.

Benefits of Installment Loans

There are many benefits that come with taking out an installment loan, including:

You’ll have access to funds quickly, so you can get what you need without having to wait
You’ll know exactly how much you have to pay each month, which will help you budget for the loan repayments
Provide you with a greater degree of flexibility than other types of loans.
You can be sure that the loan’s parameters make sense for you and that you can afford to make the payments
You can use them for a variety of needs

Whether you’re looking to purchase a new home appliance, cover car expenses, fund an emergency, or take a vacation, an installment loan can be the perfect solution.

What Can You Use an Installment Loan For?

While you can technically use an installment loan for a huge variety of reasons, some paths are smarter than others.

1. What if I Can’t Afford New Home Appliances?

If you need to purchase a new home appliance, such as a washer, dryer, or dishwasher, an installment loan may come in handy. Always make sure you cover the loan’s parameters and installment plan thoroughly, and make sure you can budget to cover the installments.

Purchasing a home appliance this way keeps a large purchase off of your credit card and provides you with reasonable repayment options.

2. What if I Can’t Afford My Car Expenses?

Car expenses can be a real drag. Unexpected mechanic’s work and repair bills can paint you into a corner, along with your vehicle. Talk about being stuck between a rock and a hard place.

3. What if I Can’t Afford Emergency Expenses?

An installment loan is often the perfect loan to help cover emergency expenses, as emergency cases such as hospital bills or the devastating loss of a family member can destroy your finances and leave you feeling like you have no way out.

4. What if I Can’t Afford a Vacation or Trip Abroad?

Taking a vacation or a trip abroad always seems like a wonderful experience…until you do the math and determine that you can’t afford it, after all. Fortunately, installment loans are a great way to finance your travel plans. Take extra care to ensure the repayments fit into your budget when you’re back from vacation, though.

Do Installment Loans Hurt Your Credit?

Only if you don’t repay them on time. Submitting late payments or defaulting on payments may cause the lender to report negative information to the credit bureaus.

Additionally, the hard inquiry into your credit history when you get approved for the installment loan can also hurt your credit score initially.

Are Installment Loans Worth It?

Installment loans are often worth it, if the APR, payoff periods, and loan amounts are better than what you may receive with other lenders. The science of making it a healthy financial decision rests in the consideration of the repayment plan.

If you know you are going to have a hard time making the repayment schedule you iron out with your lender, it may not be the best time to apply for an installment loan. Being on shaky financial footing is no time to enter into an agreement where you’re required to make installment repayments.

Learn More With Koster’s Cash Loans

With an installment loan, there are a lot of perks: flexibility, competitive rates, and it can be used for various types of financial needs.

Ready to take the next step? Reach out to Koster’s Cash Loans to get more information about the types of loans they offer and see if one is suitable for you.