In Columbus, Wisconsin, installment loans are a popular lending option that many people choose when they require extra cash to handle unexpected expenses or cover an urgent financial need. Installment loans allow borrowers to receive a lump sum of cash upfront that can be repaid over an extended period in pre-determined installment payments that fit their budget and financial situation.
How do Installment Loans Work?
Installment loans are different from payday loans because the borrower can choose the repayment terms that suit them best. Instead of paying the entire loan and interest in one lump sum payment like a payday loan, installment loans are repaid in regularly scheduled installments for the agreed-upon term.
The amount of an installment loan can vary based on the borrower’s creditworthiness, income, and the lender’s qualification standards. The loan can typically range from a few hundred dollars to ten thousand dollars or more, depending on the lender and the borrower’s current financial situation.
The Benefits of Installment Loans
There are many advantages to taking out an installment loan in Columbus, Wisconsin. These benefits include:
- Flexible Repayment Terms: Installment loans offer flexible repayment terms that allow borrowers to make consistent, scheduled payments over the life of the loan.
- Budget Planning: Since installment loans have fixed repayment amounts and schedules, borrowers can budget and plan their finances accordingly. This can help reduce financial stresses and alleviate any financial worries.
- Quick Access to Cash: Installment loans can be obtained relatively quickly compared to other types of loans, which can be crucial during a financial emergency.
Installment Loans vs. Other Types of Loans
When comparing installment loans to other types of loans, borrowers should understand what makes each type of loan unique. Here is a list of other common types of loans:
Payday Loans
Payday loans are short-term loans that are typically due on the borrower’s next payday. Payday loans are often granted without a credit check, making them easy to access. However, payday loans have high interest rates and fees, which can make repayment difficult for many borrowers. For this reason, payday loans are generally only recommended as a last resort and for urgent financial needs.
Personal Loans
Personal loans are a type of loan where the entire loan amount is usually disbursed upfront and repaid in regular installments over a set period, usually between two and seven years. Personal loans typically have lower interest rates than payday loans and offer far greater flexibility in the repayment terms. In addition, personal loans often offer larger borrowing limits that can be used for anything from home renovations to debt consolidation.
Interesting Facts and Statistics about Installment Loans in Columbus, Wisconsin
- In Wisconsin, the legal borrowing limit for installment loans is $10,000, with no more than 33% interest charging over the loan’s life, which must be less than two years.
- Installment loans are the second most popular type of loan for people in Wisconsin, after mortgages.
- Wisconsin borrowers paid 583,482 installment loans in Wisconsin, resulting in $162,986,865 in interest payments in 2015.
‘Apply Now’ Section
If you are considering an installment loan, TheGuaranteedLoans can help you find a lender that fits your needs. We are a third-party connector service that partners with direct lenders who offer installment loans with competitive interest rates, flexible repayment schedules, and low fees. Apply now to receive multiple offers tailored to your specific requirements.
Please note that TheGuaranteedLoans is not a direct lender. We act only as an intermediary between you and the lender you choose. We also encourage you to read and understand the terms and conditions of any loan agreement before signing.