You are in a financial mess and need money immediately. What are your possible options? While you can always borrow from a friend, it eventually impacts your repute. Bank loans are specific and can take weeks before you get an approval. A better alternative is an online personal loan, also called installment loans. In this post, we are discussing the basics of such loans.

Applying for online personal loans

There are websites, such as Slick Cash Loan, where you can apply for an installment loan. These are matching services, and once you furnish the necessary information, they will use their network of lenders to get an approval. The biggest advantage of installment loan is quick approval. Sometimes, applicants apply and get money on the same day!

Are personal loans same as payday loans?

There is no denying that installment loans do have a few similarities with payday loans, but the differences are huge. Firstly, online personal loans allow you to borrow as much as $3,000, depending on the lender, your financial situation, and state laws. Payday loans, on the other hand, only allows $750 or a tad more. With installment loans, you can pay back in installments, and that’s a big advantage, because you have more time to manage your financial situation. Also, payday loans are to be repaid within 30 days or on your next payday, while online personal loans can have flexible terms up to 24 months.

Other things to know

Any form of lending should be used carefully, and online personal loans are no different. Do not use this as an option for not managing your finances well. This is a medium-term advance, which comes with a high interest rate, so ensure that you are capable of repaying the loan as per schedule. Renewal is an option for sure, but that too can be expensive, with an added interest. The bottom line is to use personal loans carefully and only when required for financial distress. The credit score of the applicant doesn’t always matter to lenders as long as they have a stable job and income, but some lenders may want to know about that, which is again something to be considered. Not paying personal loans can have an impact on the credit score.

Final word

If you need money without any delays, an online personal loan can be really useful. Just read the terms and conditions and check online for all other details before you apply.