An installment loan might be the perfect solution for your financial conundrum. However, before you sign up, you might want to know what you can expect to pay in total. In addition to paying back the loan amount, of course, you’ll be expected to pay interest for the service, and you may have to pay a few additional fees as well (depending on the lender). To help you decide whether this loan makes sense for you financially, let’s discuss the cost of an installment loan.
The Cost of an Installment Loan
To figure out how much you’ll pay when all is said and done, there are a few different factors you’ll need to take into consideration:
THE LOAN AMOUNT
Obviously, the amount that you choose to borrow will need to be paid back with interest. This amount will vary from person to person, and different lenders will allow you to borrow different amounts. For example, if you choose to borrow from Advance Paycheck Online, you can borrow anything from $200 to $1,500 (the amounts vary by state). The amount that you can borrow is based on your repayment ability as well.
YOUR INTEREST RATE
Your installment loan will come with interest, also known as an annual percentage rate (APR). Again, different lenders will offer different rates. The interest will likely be compounded, which means that it will accrue on your principal and the interest it accumulates. And the amount of interest you owe in the end will depend on your payments . . .
YOUR PAYMENTS
How you pay off your installment loan will have a huge impact on the total cost of the loan. Look for a lender that offers a flexible payment schedule to give yourself options. For example, Advance Paycheck Online allows borrowers to make regular bi-weekly payments or pay off the entire loan at any time. In addition, we prorate the fees so that if you pay off the loan early, you will only pay the fees that accrued while you had the loan. So if you received a $100 loan and then paid it off in 14 days, you would only pay $15 for the service!
ADDITIONAL FEES
Additional fees on installment loans vary by lender. For example, some lenders will charge origination fees and setup fees when you first receive the loan. You might be charged a fee if you make a partial payment as well. To reduce these irritating charges, look for a lender that refuses to charge hidden and extraneous fees. We wouldn’t want to toot our own horn, but if you’re sick of paying hidden fees, be sure to check out Advance Paycheck Online. We won’t charge origination fees or setup fees, and you can pay off your loan whenever you like without any additional penalties or charges!
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So what is the cost of an installment loan? That depends on two things: your actions and your lender’s terms and conditions. If you choose the right lender and pay off your loan quickly, you will pay very little for the service. It’s all up to you!
Are you looking for an installment loan from a direct lender? Be sure to check out Advance Paycheck Online. We offer short-term advances and installment loans online to the residents of three states: Illinois, Utah and Wisconsin. Our flexible payment schedules will help you pay off your loan as soon as possible, and we prorate the fees involved so that if you pay off the loan early, you will have very few fees to pay. To get started, please contact us online or give us a call at 1-815-436-4242. We would be happy to help!
