Installment Loans FAQ
Installment Loan Basics
? What is an installment loan?
An installment loan is a loan that is paid off over a set number of scheduled payments. The loan can be repaid over a few months or a number of years. Installment loans make personal budgeting easy because the amount to be repaid each month is the same.
? Why are installment loans known as “installment” loans?
Installment loans are so-named because you must pay the principal and interest due in regular installments. These installments are all equal in size. In many ways, an installment loan is similar to a payday loan, except you get more time to pay back the loan, and you can borrow a larger amount.
? What is the maximum loan amount for Installment loans?
PayDayAllDay offers installment loans up to $5,000.
? How much will I owe over what time period?
This varies. It depends on the lender, the total amount borrowed as well as the terms of the loan. Payments are usually due monthly, but some lenders may offer loans with bi-weekly payments or use some other installment period. Always review loan terms carefully before accepting any offer.
? When is an installment loan the most suitable choice for financing?
An installment loan is a good option for borrowers who require more money than a payday loan can provide, or need more time to pay back a loan. For smaller amounts and shorter terms, a payday loan may make more sense. For larger amounts and longer terms, consider a personal loan.
? What are the advantages of paying in installments?
Paying in installments is easy and predictable. It is hard to miss a payment when they are due at the same time every month and are always the same amount. Installment loans provide simplicity and peace of mind.
? How do I calculate if I can afford an installment loan?
This is another benefit of installment loans – it is easy to calculate their cost. Based on the amount borrowed and the term of the loan, the interest can be calculated. Once you know the total amount (principal plus interest) you will be paying in each installment, you can check your budget to see if you can pay back the loan without straining your monthly finances.
? Is it harder to qualify for an installment loan than a payday loan?
Not on PayDayAllDay. Our lenders are willing to offer installment loans to borrowers who have a low credit rating or no credit.
? What is the approval time for an installment loan?
Many borrowers who apply for installment loans on PayDayAllDay are approved within minutes, and may even receive their cash on the same day.