How Do Installment Loans Work?

Everyone faces a hard time, financially, at some point or another in their lives. The roof starts leaking, a medical emergency drains your savings, or the car breaks down on the way to work. No matter what the inconvenience looks like, it’s just that. An inconvenience. It can be hard to know what to do next or where to turn when the only way to resolve the matter is with cash that is not readily available. The ideal way to handle an emergency that requires access to funds quickly is to borrow from a family member or a friend or perhaps to dip into the reserves of your savings account. However, not everyone has this option. Personal loans are often used to cover expenses that cannot wait and Cash Central offers loans that can help if you find yourself in such a pinch. Personal loans should be considered only when necessary because there are interest payments and fees associated with borrowing. Understanding the way an unsecured installment loan works, the application process, and best practices for borrowing can help ensure a smooth and successful lending experience.

What is a Personal Installment Loan?

Borrowing money by utilizing an installment loan means that you are able to pay back the amount borrowed in monthly payments⁴ or installments verses in a lump sum repayment. Installment loans are available in many forms and from various lenders. Examples of installment loans include a mortgage, an auto loan, student loans and personal loans all of which are installment loan types² that require scheduled installment payments. Cash Central Installment Loans are personal loans where the approved funds are delivered to the recipient within a few days of approval (many times as soon as the next business day depending on the customer’s bank policies for funds availability). It is paid back over time in either monthly, semi-monthly, or bi-weekly payments called installments, not all states offer all repayment options. Cash Central Installment Loan amounts and availability vary by state, so make sure you check with a representative or our availability map prior to applying. Reviewing the Rates & Terms of any personal loan you choose to apply for is an important part of the process. You will want to make sure you understand the terms, the fees, and any interest charges that you will be responsible for prior to taking out a loan.

So how do installment loans work at Cash Central? Simply put, after approval, a Cash Central Installment Loan is funded, and you receive the funds via electronic bank deposit to your account of choice. You are free to spend the funds as you wish. You will make installment payments to repay the loan over time in either monthly, semi-monthly, or bi-weekly payments. The exact terms and length of your loan repayment plan will be determined during your application process as each situation is unique.

What can a Cash Central Installment Loan be used for?

Installment Loans from Cash Central can be used in any way you see fit. There are no stipulations in place that limit the way you can use the funds received after approval. However, similar to Payday Loans, we suggest using Installment Loans only when necessary. Borrowing money can be expensive, and it’s important to assess your financial goals when considering a loan to see how repayment will fit into your budget and your plans. Installment loan interest rates will vary which can affect your installment amount during repayment, so be sure to carefully read your agreement prior to finalizing your loan. With that said, the freedom and flexibility offered through Installment Loans from Cash Central is an excellent perk to working with us to apply for the funds you need when in a pinch.

Installment Loan Application Process

We pride ourselves on offering fantastic customer service, transparency when it comes to our rates and terms, and a secure online experience with quick funding. The application process for a personal, unsecured installment loan is typically fairly easy,³ and loans at Cash Central are no different. Applying for an Installment Loan through our online application is simple, secure, and can be completed quickly. Even if you do not have stellar credit,¹ a personal Installment Loan approval is possible. We offer a application online that can be completed in three easy steps. Decisions are granted quickly, typically within just a few minutes. Once you’ve received your approval you can receive funds as soon as the next business day depending on your banking institution. To keep the process moving quickly, we suggest having the following handy prior to starting your application:

• A verifiable source of income.
• Valid checking account in your name.
• A current (and valid) telephone number
• Your social security number.

Keep in mind, you must be at least 18 years of age to apply. In Alabama, you must be at least 19 years of age. Once you’ve completed your application and a lending decision has been made granting you approval, you’ll have funds in your bank account quickly so you can start getting back on track.

Smart Borrowing Practices

An Installment Loan from Cash Central can provide needed funds quickly and conveniently even for customers with less-than-ideal credit scores, and we understand that sometimes financial situations can arise that are difficult. Ultimately, we want our customers to succeed! That’s why we suggest considering your repayment plan prior to applying. A great option for creating your plan is to utilize our Budget Planning Tool to create a workable budget that includes your potential Installment Loan payments prior to applying. When an unexpected financial situation arises, it is possible for the event to cause long-term changes to a budget which is less than ideal. Focusing on debt repayment and knowing that concessions will need to be made to accelerate payments and lessen the burden of the financial hiccup that was just overcome is key. When you’re short on funds, it’s hard to see brighter days ahead. With a plan in place, however, you can get back to sunnier days sooner rather than later.

*In California, deferred deposit loans are provided in accordance with the Department of Financial Protection and Innovation pursuant to California Deferred Deposit Transaction Law, Cal. Fin. Code §23000 et seq.

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Sources:

¹Millerbernd, Annie (2022, Feb 10). What Is an Installment Loan? Retrieved from: https://www.nerdwallet.com/article/loans/personal-loans/what-is-an-installment-loan

²Maverick, J.B. (2023, Feb 27). How Installment Loans Work—and Are They Right for You? Retrieved from: https://www.investopedia.com/articles/personal-finance/072316/how-installment-loans-work.asp#:~:text=The%20advantages%20of%20installment%20loans,default%20and%20loss%20of%20collateral.

³Medine, Taylor (2023, Jan 23). Installment Loan Vs Revolving Credit Retrieved from: https://www.forbes.com/advisor/personal-loans/installment-loans-vs-revolving-credit/

⁴Taylor, Mia (2023, Apr 26). What is an installment loan? Retrieved from: https://www.bankrate.com/loans/personal-loans/what-is-an-installment-loan/#:~:text=Installment%20loans%20allow%20individuals%20to,require%20regular%20equal%20monthly%20payments.