If you’re wondering what an installment loan is, you’ve come to the right place. Installment loans can help you meet your financial goals. Once you take one out, you’ll get a lump sum of money upfront and repay it via fixed payments or installments over an agreed upon term.

Whether you need some cash to cover medical bills, home improvement, emergency expenses, or various things in between, an installment loan can make your life a lot easier.

Installment loans are a great way to gain access to cash quickly and can help improve your credit over time through timely monthly payments. As you research lenders and options, be sure to look for the following when doing your homework.

Flexibility

Most installment loans are flexible. However, some impose restrictions on what you can do with the proceeds. If possible, find an installment loan that lets you spend the money the way you’d like. You don’t want to commit to a loan and later learn that you can only use the funds on debt consolidation when your goal is to pay for a car repair, for example.

Fast funding

It can be frustrating to have to wait weeks or months for funds when you need them right away. That’s why it’s important to choose an installment loan that offers fast funding via direct deposit, a prepaid card, or check. Depending on the lender, you may receive the money the same day you apply, within 24 hours, or in a few business days.

Convenient terms

The term you choose will help determine your monthly payments. If your goal is to keep your payments as low as possible and you don’t mind paying more in interest, go with an installment loan that lets you repay over the course of several years. On the flip side, if you’d like to pay back your loan as quickly as possible and save on interest, an installment loan with a shorter repayment term is your best bet.

Prequalification option

When you prequalify for a loan, you fill out a short form and receive potential loan offers without any impact to your credit score. Prequalifying can give you a good idea of what types of rates and terms you might qualify for and whether or not you’d like to move forward with a specific installment loan.

Good customer service

If you opt for an installment loan with good customer service, you can save yourself time and headaches in the future. Ask your friends and family about lenders they’ve worked with and liked. You can also read reviews and ratings on third-party websites like the Better Business Bureau (BBB) and Trustpilot.

Perks

Some installment loans offer perks like free access to your credit score, autopay, financial education, and hardship assistance. These extras can make your investment in an installment loan even better. If you come across two loan options with similar rates, terms, and service, you might want to go with the one that offers the most perks.

Do your research

While it may be tempting to choose the first installment loan you find, doing so can be a mistake. If you do your research and compare options, you’re far more likely to find the best installment loan for your unique budget and needs.

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