When deciding which online loan is right for you, it’s important to consider repayment terms. An ideal repayment term for an easy online loan is based on your preferences and needs. Different types of online loans that are easy to get include cash advances, installment loans, and a line of credit. Here’s what you need to know about these loans and their repayment terms:
A cash advance is a short-term, small-dollar loan. The amount of money you can receive is usually a few hundred dollars, and you can use the funds to cover unexpected or essential expenses. In many cases, you’ll repay the loan in a single payment when you receive your next paycheck, in two to four weeks.
Oftentimes, you can give the lender authorization to electronically debit the funds from your credit union, prepaid card account, or bank. The lender will only withdraw from your account if you don’t repay the loan on or before the due date. If permitted by state law, some cash advance lenders might offer a renewal or rollover feature. This allows the old loan balance to roll over into a new loan or renew the existing loan. If you choose to go this route, you’ll only pay the fees, and the larger loan balance is extended to a future due date.
An installment loan involves borrowing a lump sum of money from a lender, then repaying it with interest over a series of fixed payments called installments. A few scenarios where this loan option may be ideal is if you have a large amount of debt on your credit card, or need to pay off an unexpected medical bill.
Installment loan amounts can range from a few hundred to a few thousand dollars. The timeline for paying off these loans can range from a few months to a few years, depending on the lender and loan terms. Borrowers often make monthly payments, but can sometimes pay off the loan bi-weekly or weekly.
Lines of credit
A line of credit is a flexible loan that lets you access money whenever you need it, up to your set credit limit. With these loans, you can repay what you owe all at once or over time. Lines of credit can be useful as an emergency fund or for large expenses. They can also be a great option if you have to fund something with an unpredictable cost, such as a home improvement project.
The bottom line
Easy online loans like cash advances, installment loans, and lines of credit all come with different repayment terms. There is no one-size-fits-all, so the right option for you may differ from someone else. Be sure to carefully review your financial situation to help you determine which loan and repayment term works for your needs and budget.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.