How Instalment Loans Work

How Instalment Loans Work

If you have been looking for a loan, you will realise just how many different types there are out there. But the easiest way to think about loans is by breaking them down into two types; you have revolving line of credit and you also have instalment loans. In particular, instalment loans offer a way to deal with short-term loans, as well as long term ones. They are definitely worth considering if you need some financial help.

So, let’s find out more about what instalment loans are and the benefits that they can offer you.

What are Instalment Loans?

An instalment loan is money that you borrow and you choose to pay back in monthly instalments. They are usually a set amount of money, which made is made up off the repayment and interest from the lender you have borrowed from. This is different from payday loans, which you can pay back in one payment after you get paid from work. For example, having a mortgage for your home is a form of an instalment loan. You pay money towards your mortgage every month.

There are some requirements you must have before you will be able to enjoy instalment loans. While every lender will be different, you generally need a good credit score and employment.

What are the benefits of choosing an Instalment Loan?

The biggest advantage of instalment loans is their flexibility. Instead of struggling to repay a loan in one lump sum, you can stretch out the payments over several months or even years. This makes it a lot easier to pay and make sure that you do not miss any of your repayments. You know what day of the month that your payment will be taken so that you can prepare. It is a lot easier to budget.

Often with instalment loans, you are able to choose the amount of time you take the loan out for. This means that the longer the term, the lower the monthly payments are. Of course, you may pay more in interest over this time, but it should be a constant rate rather than changing all of the time. You always know how much you should pay with instalment loans.

Where Can I Find Instalment Loans?

If you think that instalment loans could be the best option for your financial situation, you can search for the best ones at As an FCA and ICO approved and regulated credit brokers, we can find you exactly what you need.

How do we do this? Well, it all starts with you filling out an application form. This will not take long and we can connect you with up to 60 lenders in around 100 seconds. You will not have to fill out more than one application, which is going to save you a lot of time and effort. You can take a look at the lenders and see if you can find the right match for you. All of our partners are FCA and ICO regulated, which means you will never be at risk from scams.

The great thing is that using will not affect your credit score. Some lenders use a soft pull of your credit information, which does not leave a mark. This means that if you change your mind, your credit score will not be affected. What’s more, we never spam you or call you after you have used our services. You will not have anything to worry about.

So, if you want to find an instalment loan that suits your financial situation, fill out an application form today. It is free and you will receive a no-obligation quote.