To be able to make larger purchases or, for example, take a nice holiday, you can use your savings, a profit distribution or your holiday allowance, among other things. But sometimes it can happen that your expenses do not occur at the same times as your income. Think of situations in which you have to pre-finance a large expense or in which you know that you will only receive money later. The July tax refund is a good example of this. That is why in some cases you need some financial scope. An installment loan is very suitable to provide you with extra financial support.
Where can you find the best installment loans?
There are many lenders where you can take out an installment loan. You can start comparing them all yourself, but there are easier ways to find the best lender. With the online loan simulator from Across Lender you can see exactly which lender offers the best loan for you. So if you want to know where you can best take out an installment loan, click here:
What is an installment loan?
With an installment loan you borrow a fixed (maximum) amount, which you then pay off periodically. There are various forms of installment loan, of which the revolving credit and the personal loan are the best known.
Characteristics of a revolving credit
With a revolving credit, you do not immediately borrow a certain amount, but you agree a credit limit with the provider of the loan. You can then borrow up to that amount. You can choose to withdraw that amount in parts or use it in one go. You start paying off when you have used (part of) the revolving credit. With a revolving credit, you pay off a certain pre-agreed percentage of the loan amount every month. Often you pay a fixed amount, which consists of an interest part and an amortization part. A revolving credit is especially useful if you periodically have extra expenses, the amount of which you cannot estimate exactly in advance.
Features of a personal loan
If you take out a personal loan, you immediately have access to a certain amount agreed in advance. You know exactly under what conditions you borrow this amount and therefore also in how much time and against which monthly amounts you have to pay it off. This type of loan is therefore especially useful if you have to make a one-off large (unexpected) expense.
What do you use an installment loan for?
You use an installment loan if you (unexpectedly) have to make large expenses, for which you do not have enough own money at that time. You can borrow more money with this type of loan than with a current account and the interest is also more favorable than being overdrawn at your bank. For example, you can use a revolving credit or personal loan for, among other things:
- Important moments in life, such as a wedding, birth or funeral
- The purchase of a new or used car, caravan, boat or motorcycle
- Refurbishing or replacing (parts of) the home, such as the bathroom or kitchen
- Financing a sabbatical year
- A long and distant vacation, or a beautiful honeymoon
- Paying off debts to, for example, the tax authorities or the energy supplier
- Unexpectedly high medical expenses after an accident, surgery or hospitalization
But you can also take an installment loan to finance smaller expenses. Consider, for example, a new laptop, washing machine, electric bicycle, or paying school or tuition fees.