When sudden and unexpected expenses arise, installment loans offer a quick and easy way to get the money you need, when you need it. But before you apply for one, there are a few things you should know about them.
Generally, installment loans are easier to secure than a traditional loan from a bank — When you apply for an installment loan at Bell and Diamond Finance, you will typically just need:
- your current (and possibly previous) residence
- your employment status and history (or other info on how you’ll get the money to repay the loan)
- your Social Security number
- your monthly expenses
- your authorization for a credit-bureau report to be run
They are not payday loans — Installment loans typically allow for more money to be borrowed, longer terms for repayment, a lower cost of borrowing and more flexibility than payday loans.
They do carry an interest charge, but the corresponding APR can give a distorted perception — Because the term on an installment loan is typically much shorter in duration than that of a long-term loan, when the APR is calculated, it can sound much more costly than the actual interest owed. For example, let’s say you borrow $100 and agree to pay $1 in interest on the loan. Seems fair, right? But when the APR that the $1 in interest represents is calculated, it will vary greatly depending on the loan’s term.
Consider that:
- If the $101 is paid back in one year, the APR is just 1%.
- If it is repaid in a month, the APR jumps to 12%.
- If the loan is repaid in a week, the APR is 52%.
- And if the loan is repaid in a single day, the APR is a whopping 365%.
… So, while the loan costs just $1, the APR fluctuates greatly depending on how quickly it is repaid — making it a poor way to measure the true cost of a short-term loan.
Minimum and maximum loan amounts: Bell and Diamond Finance make loans from $200 to $1700.00
Installment loans are fast — Once an application is approved and all the information supplied is verified, a lending decision can typically be made within 30 minutes.
Installment loans are versatile — The reasons people take out personal installment loans are wide-ranging. Some of the most common reasons borrowers take out personal installment loans include:
- unexpected expenses
- multiple unanticipated bills landing at once (for medical emergencies, auto repairs, etc.)
- irregular and unpredictable workloads/income (Sometimes you’re busy with work, other times you’re just not.)
- a need for an advance on a fixed income
- unforeseen opportunities (Maybe you need a little extra cash to buy a rare find or fund a spur-of-the-moment adventure … and you know you’ll have the money soon, but you need it right now.)
