Introduction
When it comes to borrowing money in Kansas, installment loans are a popular choice for many people. These loans allow borrowers to pay back the money they borrow over a longer time, with smaller payments spread out over time. If you live in Aurora, Kansas, and are considering taking out an installment loan, it is important to understand the facts.
What Are Installment Loans?
Installment loans, as mentioned earlier, are loans that are repaid over time with fixed payments at regular intervals. They are typically larger than payday loans, which require full repayment on the borrower’s next payday, and often have lower interest rates.
Unlike payday loans, installment loans also have longer terms, meaning that borrowers can pay back the money they borrow over a longer period. These terms can range from a few months to several years, depending on the lender and the amount borrowed.
How Do Installment Loans Work?
When someone takes out an installment loan, they borrow a fixed sum of money from a lender, which they agree to pay back over time with set payments. These payments are typically made monthly, but can also be bi-weekly or even weekly, depending on the terms of the loan.
Installment loans can be secured or unsecured. Secured loans require collateral, such as a car or house, to back the loan. Unsecured loans do not require collateral, but typically have higher interest rates due to the greater risk for the lender.
How Are Installment Loans In Aurora Regulated?
In Kansas, installment loans are legal and regulated by the Kansas Office of the State Bank Commissioner, which ensures that lenders comply with state laws regarding lending and consumer protection.
State regulations specify that installment loans in Kansas cannot have an interest rate greater than 36% and that the full amount borrowed plus fees must be repaid within a set term.
Pros And Cons Of Installment Loans
Pros:
- Flexible Repayment Terms: Borrowers can choose the length of time they need to pay back the loan, which is typically longer than payday loans.
- Low Interest Rates: Installment loans can have lower interest rates than payday loans, making them a more affordable borrowing option.
- Suitable For Larger Borrowing Needs: Because installment loans allow borrowers to borrow more than payday loans, they can be a better choice for people who need to borrow a larger sum of money.
Cons:
- Longer Repayment Period: While the flexibility of installment loans can be a pro, a longer repayment period also means that borrowers will be paying interest for a longer period of time, potentially costing more in total.
- Complicated Fees: Some installment loans have complicated fees that can make it difficult for borrowers to understand exactly what they are paying for.
Interesting Facts About Installment Loans In Aurora, Kansas:
- Aurora, Kansas has a population of approximately 60,000 people, making it a smaller city in comparison to nearby larger cities like Wichita and Kansas City.
- The average credit score in Aurora is 685, which is considered “fair” but can still make it difficult for some borrowers to obtain a loan from traditional lenders.
- In 2020, the Office of the State Bank Commissioner received a total of 25 complaints regarding installment loans in Kansas, down from 79 in 2019.
Apply Now
If you are considering an installment loan in Aurora, Kansas, we encourage you to fill out an online application on our website. Please note that we operate as a loan connector service, meaning we do not directly lend money, but can connect you with potential lenders.
When using our service, you can rest assured that we work with only trusted and verified lenders who comply with all state and federal regulations. We strive to provide a safe, easy, and transparent experience for all borrowers.
Conclusion
Installment loans are a popular borrowing option for many people in Aurora, Kansas. By understanding the pros and cons of these loans, as well as the regulations in place to protect borrowers, you can make an informed decision about whether an installment loan is the right choice for your financial needs.