Have an unexpected bill to pay? Are you dealing with an unforeseen financial situation? If you are a federal employee, you can go for an installment loan. As the name indicates, an installment loan is paid is installments over a period of time, unlike payday loans, which are to be repaid in weeks. In other words, installment loans for federal employees offer more flexibility, and you can also borrow more and at a lower interest rate, when compared to payday loans. That said, should you consider the idea of an installment loan? What are the options? In this post, we are discussing some of the basics.
Types of installment loans
You can consider different kinds of installment loans. The first one is an allotment loan, which can be either discretionary or non-discretionary. In this case of discretionary loans, the amount repaid in installments can be decided by the borrower, while lender typically dictates the terms of non-discretionary loans. There are also other kinds of installment loans – Federal Credit Union Loans, Private Military Loans, Personal Installment Loans, Online Installment Loans, and Personal Loans for Poor or Bad Credit.
Pros and cons of installment loans
The biggest advantage of installment loans for government employees is the ease in getting the loan. There are simple requirements, and even if you don’t have a great salary or big credit score, you will still get approved by all possibilities. This is because the lender is assured that your job is secure and stable, and the money will be eventually recovered. The interest rate can be a tad higher for installment loans, but you still save money when compared to payday loans. The money you get through the loan can be more than payday loans and can be used for any purpose. To be precise, you don’t need to state a reason to take an installment loan.
On the flip side, any form of lending requires you to pay an interest, and the lender will recover the money, so having a plan for repayment is critical. The idea is to borrow rationally and responsibly.
Final word
There is no denying that installment loans are great for federal employees, especially those who don’t have a great credit score, or cannot get a traditional loan for other reasons. Also, the process is discreet, and if you go for an online loan, the whole process can be completed online.
