It’s never easy to find yourself in a financial conundrum where you need cash you don’t have. That is usually the time to think about some inheritance you have forgotten about, but if it does not magically appear, it’s best to consider getting an installment loan. There are many benefits of installment loans, and we will discuss the main ones today.
What are installment loans?
They are a type of loan in which you borrow a certain amount of money and agree to repay it (together with a set amount of interest) through a series of monthly payments. They can be either monthly or bi-monthly. In a nutshell, it’s a less risky loan when compared to payday loans that you have to repay usually at once, come paycheck time.
For what reason would you need an installment loan in the first place?
The short answer is anything. Examples include:
- Unexpected emergency auto repairs
- Tuition Fees
- Travel Expenses
- Damage Repair Costs
- Medical Expenses (your insurance doesn’t cover)
- Unexpected home repairs
What to look for in a direct lender In Wisconsin?
When you’re looking for installment loans in Wisconsin, the first thing you should check about your direct lender is whether they are licensed by the state or not. If they do not have a state license, you will be in a disadvantageous situation because you will have no assurance of your loan. If, for example, you get a loan from a non-licensed, non-accredited or overseas lender who does not abide by federal and state lending laws, the terms of your “financial agreement” are not set in stone. They can be changed, and the state will not be able to protect you. The state of Wisconsin has specific guidelines that affect the loan amount, terms, and rates that licensed lenders can provide. Do not take your chances with non-licensed borrowers!
Annual percentage rate & other conditions
Direct lenders always have example loans on their website (if they do not, that is a red flag), so be sure to check that. Pay attention to the annual percentage rate, the finance charge, amount financed, and the total sum of payments you will have paid by the maturity date. In Wisconsin, small cash, short-term loans should not exceed $1,500 plus fees or 35% of your gross monthly income. For payday and installment loans in Wisconsin, the lesser of those applies.
Even if a direct lender is state-licensed, it’s still important that you turn to a reputable company. Check what people are saying online about the lender you have chosen. If it’s an online borrower, check whether their website is secure, if it crashes frequently, and if their customer support is slow, etc.
Different loans have different advantages and are applicable in specific situations. Installment loans are a good option when you need money quickly, and the sum is above your paycheck. When easily repayable, smaller amounts are required, then you might want to consider payday loans. If you’re looking for lenders in the area, make sure they have a state license and abide by Wisconsin’s specific rules and conditions for online lenders.