Not many people realize that when borrowing money online, they can apply for installment loans. This is convenient in that the borrower doesn’t have to repay the loan in a lump sum. It may turn out very difficult to repay a $1500 loan in a single payment or even impossible in certain situation. After all, people have to have money for their daily needs, their livelihood. If a person needs a large loan, such as the aforementioned $1500, he or she may have no money left after the loan is paid back, and what’s then? The person would have to take out another loan and another. This would start a vicious circle of borrowing that is certainly no good for anyone. Even the lenders, although they make money off borrowers, don’t approve such a situation, because sooner or later the borrower would lose his/her ability to pay back a loan. Defaults are very expensive for the lenders and for this reason alone they don’t want anyone to default on their financial obligations.

Installment loan

If you need a short-term loan but feel that you can’t afford to pay it back in a single payment, you can request an installment loan. Most online lenders provide payday loans and cash advances with monthly payments. There is however a downside to taking out a short-term loan with an installment option, namely, the borrower will have to pay a fee for each month the loan is extended. This usually makes the loan more expensive. The borrower has an option to negotiate better terms and conditions of such a loan. Online lenders, especially those offering bad credit loans with monthly payments, are willing to lower their fees to make the loan more affordable. A good thing about taking out online loans is the fact that some lenders accept customers with bad credit. This can help people to receive a loan, which they would otherwise be unable to get from conventional lenders.

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