If you want to take out the best installment loan, you need to know what to look for.
Reasonable Interest Rates
First, look for a loan with a reasonable interest rate. Since installment loans vary significantly in terms of APRs, this will have a huge impact on the costs of your loan.
This influences your monthly payment and how much interest you’ll pay over the life of your loan. You can potentially save thousands of dollars depending on the term length and amount of your loan so this is especially important.
A Term Length Option That Fits Your Budget
Next, look for a lender that provides you with several term length options. If you only want to borrow money for one year and a loan will only let you borrow it for four years, then that’s probably not a good match for you. The more term options that a lender has, the better you can customize the loan to your needs.
No or Low Fees
Finally, the last thing that you should look at are the fees that the lender is charging on the loan. If you can find an installment loan with no fees that is the best bet. Most reputable lenders won’t charge you prepayment fees, although many do still charge origination fees. Make sure to read the fine print on your loan before borrowing so you’re aware of all fees.