When you are in financial straits, it often seems like you have few options for dealing with emergencies or improving your situation. However, even if you have bad credit or low income, you likely still qualify for an installment loan. Here is what you should know before speaking with an installment lender in Mississippi.
What Is an Installment Loan?
An installment loan allows you to borrow a set amount of money that you repay (with interest) over several months or years. Unlike credit, you receive the money upfront in a lump sum. If this sounds like a mortgage, auto loan, or student loan, that is because they are all different types of installment loans. However, you can also work with an installment lender to borrow money for virtually any need, from home improvements to medical bills.
Note that installment loans can either be “secured” or “unsecured.” A secured loan requires you to put up an asset as collateral, such as a vehicle title, house title, or investment account, while an unsecured loan does not require collateral. For those with bad credit or low income, it is much easier to qualify for a secured loan (and they often have lower interest rates.) However, the trade-off is that if you fail to repay the loan in a timely manner, you will lose that asset.
How to Choose an Installment Loan?
There are many installment lenders out there, and some are better than others. If you are considering a loan, look for a lender who offers competitive APRs and fees, as well as a wide range of loan amounts and payoff periods. The lower the APRs and fees, the less money you will end up paying over time. Plus, flexibility with loan amounts and payoff periods will make it easier to get a loan that suits your particular situation.
If you have bad credit or low income, you may also want to find an installment lender who allows you to apply with a co-applicant. A co-applicant may help you qualify for lower rates than you could get on your own.