3 Best Online Loans That Offer Monthly Payments with No Cosigner
What Are Online Loans with Monthly Payments?
An installment loan is a loan with monthly payments scheduled for a specific time each month. There are many options for monthly installment loans from various companies and online lenders. It can get confusing as to what this loan is officially called, so keep in mind that lenders refer to these loans as installment loans, personal installment loans, or simply as loans with monthly payments.
If you’re short on money for an emergency or important life event, there are online lenders who offer great online loans with monthly payments schedules. Some lenders even provide instant loans with monthly repayments!
How Do Online Loans Installment Payments Work?
Repayment amounts are usually tailored according to what you can afford to pay back each month and the repayment term is adjusted accordingly.
Two Great Benefits of Loans with Monthly Payments
There are several excellent benefits to take an online loan with monthly payments. Below we look at two of the best!
Personalized amounts and repayments
Personal installment loans allow you to choose a larger loan amount if you need more money. Keep in mind though, the state you live in, as well as your net income, will influence how large this amount can be. Along with a larger loan amount available to you, you have the option of choosing your repayment period and the amount that you repay every month.
The monthly payments will be determined by the repayment period you choose, the size of your loan, as well as the interest rate of your loan. But, all in all, it still offers you a personalized and flexible method of paying back your loan.
Improve your credit score
A great thing about loans with monthly payments is the opportunity it gives you to build or improve your credit score. By paying off a personal installment loan, you are demonstrating great credit behavior!
When lenders consider a candidate interested in anything ranging from personal installment loans to instant personal loans (for bad credit), they like seeing someone that can handle various types of credit. Loans with monthly payments show a consistent payment history on your credit report when it comes to handling debt.
As long as you pay what you agreed to when you need to, you can secure your ability to get future financing for a home or a car.
Can I get an online installment loan with no cosigner?
What is a cosigner?
When you want to take out a loan, some companies may require a cosigner. A cosigner is someone who signs for the debt responsibilities with you. This means they agree to stand in for your debt obligations if you fail to pay.
Lenders sometimes require a cosigner for unsecured loans, to provide additional security and lower their risk. The cosigner will thus be the person who needs to settle the debt if you default on your total outstanding loan.
Do I always need a cosigner?
Usually, companies shy away from providing unsecured loans without a cosigner. The reason is that these companies believe the risk of non-payment is too big if they don’t have the additional security to fall back on.
Fortunately, there are options available from various companies and online lenders to get an online installment loan without a cosigner. Some companies even offer instant online loans with a monthly repayment option.
When considering which company to get your online installment loan from, you can compare the following important information from each company:
- interest rates
- loan amounts
- repayment terms.
3 Best Online Loans with Monthly Payments
There are many online monthly installment loan options available. Below are our top 4:
|Stilt.com||$1,000 – $35,000||7.99%-15.99%||Up to 24 months||No||Yes|
|FreedomPlus||$10,000-$35,000||4.99% – 29.99%||24-60 months||No||Yes|
|BadCreditLoans.com||$500-$5,000||5.99% – 35.99%||3-60 months||No||Yes|
Higher Payments and Lower Payments, Explained
Before we dive into the difference between paying your monthly installment repayments over a short term or long term, it’s important to remember it will be based on affordability.
The monthly repayment of your personal installment loan needs to be an amount you can afford to pay back consistently. When you miss monthly repayments because you cannot pay a certain amount or pay for a certain length of time, your chances of getting a loan in the future (even short-term loans) will decrease.
Higher Payments over a Shorter Term
This means you choose to settle your personal installment loan debt by paying high monthly amounts over a short term. Even though you won’t feel the devastating effects of long-term interest with this option, the huge breaks in your budget could cripple your cash flow.
Remember, defaulting on these monthly loan repayments will damage your credit score.
Lower Payments over a Longer Term
In this case, you choose to pay back the online installment loan over a longer period so you can pay a lower monthly amount. This is a great option if your budget only allows for a smaller repayment amount. Be aware though, even though the repayment amount is lower, you will pay more total interest over the longer term than the option above.
This higher amount of interest paid over time especially becomes a burden if you borrowed more money than you actually needed. When you borrow the exact amounts you need instead of excess, you’re applying the affordability mindset mentioned above.
Online Loans Monthly Payments: Final Thoughts
In the end, you will have to weigh the total amount of interest you pay against what you can afford to do. Whichever option you choose, make sure you can keep up consistent monthly repayments!