Slick Cash Loan, the ultimate solution for quick and reliable loans, provides a detailed explanation of the difference between a personal loan and an installment loan. Slick Cash Loan provides online loan services across the USA. People rely on them as they work with legit partners only and stringently follow the industry’s best practices.
“There are many types of loans available to help you deal with unexpected events,” says the spokesperson for Slick Cash Loan. “However, locating the difference between different loans can present a significant challenge. Most people get confused between personal loans and installment loans and that’s why we want you to understand the difference.”
Slick Cash Loan defines a personal loan as a type of unsecured loan granted to qualifying borrowers. The loan is granted without any security or collateral. Also, the user is free to spend the loan for any of their needs, such as unpredicted medical bills, urgent car repair, home renovation, or even for debt consolidation.
A personal loan is a great option for those who need money urgently to pay off debt with interest over a reasonable period of around 24 months. However, it may put the borrower under a heavy debt if repayments are not made on time.
According to Slick Cash Loan, an installment is a loan amount paid back in equal increments over a fixed period agreed to mutually. The loan amount in this type of borrowing is significantly higher. The borrower repays a set amount every month for a specific duration.
Installment loans are the loan associated with long-term financial commitments such as mortgages, car loans, and students’ loans. The interest on installment loans depends on the type of loan availed, the principal balance, and the term for which the loan is availed.
In many ways, a personal loan can be viewed as a type of installment loan. The key difference is that while personal loans can fund anything, installment loans can fund a specific cause. Also, installment loans are secured, which means the borrower must provide security or collateral before getting the loan. A high FICO credit score may be needed to qualify.
Non-payment or delayed payment of both types of loans can affect the credit score of the borrower adversely.
Slick Cash Loan explains borrowers must show proof of a steady income source to avail loans failing which financiers may not lend.
Slick Cash Loan states that every type of loan can help, depending on the borrower’s situation. Personal loans and installment loans can help build credit for those who have a low credit score. Small amounts of loans on which they can make timely installment payments is a smart way of building a good credit score.
“Both installment and personal loans can be beneficial in building your credit,” the spokesperson adds. “However, this can help only if you are a responsible borrower and know better about your loans. To manage your loans better, make sure to pay attention to loan options and terms offered by different lenders.”
Slick Cash Loan draw attention to the four common types of installment loans generally availed. These are personal loans, mortgages, auto loans, and student loans. Personal loan differs from other types of loans despite it being a type of installment loan.
In all other types of loans, the principle will vary and depends on the value of what the borrower wants to purchase. The rate of interest and repayment time will also vary from one lender to another.
To know more about the difference between a personal loan and an installment loan, visit: https://slickcashloan.com/blog/difference-between-installment-and-personal-loans/
For details about Slick Cash Loan, click on slickcashloan.com.
About Slick Cash Loan:
Slick Cash Loan is the best resource for finding the right solution for quick and reliable loans. The loan experts can help borrowers find the best lenders and ensure fast and easy access to money when needed. Slick Cash Loan has a wide network of partners across the USA. The company stands apart with its easy approval and quick funding of loans of all types.
Company Name: Slick Cash Loan
Contact Person: Mark Snow
Email: Send Email
Phone: (888) 200-7445
Address:1125 E Broadway #545
Country: United States