What is an installment loan?
An installment loan is a type of loan where a consumer borrows a set amount of money at one time. This loan is repaid in monthly installments and the monthly installments are usually a fixed amount over that time period. These types of loans are beneficial because the APR and interest rate are fixed over that repayment period opposed to revolving debt like credit cards that can change over time. Tower Loan offers repayment period options based on the size of the loan that can fit your lifestyle the best. This helps you budget for your payment each month to avoid missing payments due to monthly interest changes like revolving debit. A few types of installment loans are mortgages, auto loans, & personal loans.
Why choose Tower Loan?
Tower Loan has been helping our customers since 1936. Since all of our loans have equal installment payments, there’s no worry with getting lost in revolving debt. Tower Loan has over 230 locations to serve you locally. We take pride in servicing our customers with the best customer service around. We listen carefully to your needs to make sure we take the worry out of obtaining credit. You can count on Tower Loan to continue our customer services just as the date we first met. We specialize in taking care of all of your financial needs.
See what you qualify for today
If you’re interested in applying for a personal installment loan from Tower Loan to see what you qualify for, you can do this a variety of ways. We take pride in offering top notch customer service in our physical branches near you. We have over 230+ locations in Mississippi, Louisiana, Alabama, Missouri, & Illinois. You can use our branch locator to find the address or phone number and apply in person or over the phone. We’re also proud to offer the ability to apply for an online installment loan online by clicking here to complete your credit application 100% online. For those that qualify, you may be able to even sign your documents electronically & have the funds deposited into your checking or savings account without ever having to step foot in an office!
There’s a reason why installment loans are so popular – they provide numerous benefits to the person taking out the loan and thus are used in various industries and settings.
But what are the benefits of monthly installment loans to the user? And how do they differ from other loans?
Let’s explore below.
Well, first off, installment loans will be very predictable compared to some of the other types of debt such as payday loans which can fluctuate depending on a range of personal circumstances.
Having an installment loan which you can repay in fixed payments month after month can provide much more stability to the person taking out the loan, allowing for greater budget control and the avoidance of unpleasant surprises.
Another huge benefit of long-term installment loans is that they aren’t designed to entrap the borrowers – some other loans are based on fluctuating interest rates that can make it seem like there’s no way to escape the debt.
The transparency and predictability of the online installment loans offered by Tower Loan means that there’s a set deadline for every loan that you take out.
Whether it’s six months, a year, or another timeframe, the clear deadline and payment structure mean that borrowers always know precisely what they’re getting into and can make an educated decision about what kind of loan will work best for them.
With installment loans, the lender is taking on the bigger risk, sometimes accepting borrowers without any collateral, which can mean that the interest rates are a bit higher than at the local bank. But these types of loans serve as an excellent option for those that need an affordable and transparent loan and don’t meet the strict requirements of certain lenders.
Finally, the convenience of installment loans online can’t be denied.
When you apply for online installment loans with instant approval, you can get evaluated in a matter of hours, and receive an offer for the best rates available.
Then, you can decide the size of the online loan that you want, set up your payment schedule according to your needs, and have the funds in your account soon after.
Using online loans with monthly payments, you don’t have to go through a lengthy process of filling out the application in person. You can instead complete all of the steps from the comfort of your own home.
Common Types of Installment Loans
Now that we’ve explored some of the most significant benefits of short-term and long-term installment loans, we can go over the most common types of installment loans and why they make sense.
The truth is, most of the conventional loans that people take out can be considered installment loans – basically, any loan that has monthly installments falls under the same umbrella.
Let’s explore some of the most common types:
A personal loan is one of the most popular installment loan options because it can apply to a wide range of situations.
Basically, anytime you need money for paying off sudden expenses such as medical bills, a personal loan can be the right solution for you. They are also a popular option for people looking to consolidate their debt.
One of the best installment loan use cases is to go on your personal dream vacation. Life often forces us to delay plans for years because of various circumstances, but with vacation loans, you can enjoy your vacation now and pay off the loan in consistent monthly installments.
When you use an installment loan to fund your vacation instead of your credit card, you can be sure that you will pay back the amount that you agree upon when taking out the loan and don’t find your debt skyrocketing because of revolving debt.
Sometimes, you may find yourself in need of a loan to fix up your house. Whether it’s the renovation project you’ve always dreamed of or sudden issues with your home that need to be dealt with immediately, home improvement loans can be a great option allowing you to get started right away.
Just as with travel loans, you can get much more stable and reliable rates than with your credit card, maintaining control of how much and when you pay back the loan.
Down Payment for a Big Purchase
When you’re planning a big purchase like a house or a car, you usually need to put down payment when taking out a loan.
And luckily, in some instances, you can use installment loans to finance the down payments for a big purchase and not wait months or even years until you save up the amount on your own.
What to Expect With Tower Loan?
Our interest rates & APR vary from a variety of factors. Once approved, your loan specialist will go over this along with term options that fit your lifestyle the best. Here is what you can expect for the process:
1) Complete an application. This can be done online by clicking here or you can call or visit one of our local branches near you. We’ll request some of your personal, financial, and employment information to provide an immediate decision on your loan application.
2) Verify your information. If you completed your application online, you may be able to answer a few identity questions to do this. Otherwise, you’ll be visiting the closest office near you to have a loan specialist verify your identity, income, and collateral (if applicable) as well as discuss your loan options.
3) Sign and receive your funds. For the online loans, after choosing your term options, you can sign your documents electronically, then expect the funds to be deposited into the account you’ve provided. If in the office, you’ll review and sign your loan documents there, then will be provided a check with the proceeds from your loan. Then, you’ll be all set!