Instalment loans are widely appreciated among all short-term loans because they help build your credit score and they are easy to manage. The length of these loans may vary from three months to 36 months, which means you can fund larger expenses. Instalment loans, contrary to payday loans, aim at funding your planned expenses. Here are some situations when 12 month loans with no credit check are an ideal option.

Wedding

Do you need money to finance your wedding? Take out 12 month loans. You need neither collateral nor guarantor. If you have the repayment capacity, the lender will lend you money. Since the minimum repayment period is three months, make sure that you are borrowing a large amount of money.

Business

Are you planning to invest in your business? Getting a business loan is difficult if you do not have much experience. Further, these loans are very expensive and you need to have a good credit score. Instalment loans will help you borrow a significant amount of money at competitive interest rate despite poor credit rating. You can get funds without securing the loan.

Car

If you want to buy a car and you do not have enough savings, instalment loans can help you. Repayments over the period will not let you fall into a predatory cycle of debt. Your car will work as collateral and therefore you are likely to get the loan at lower interest rates. Since your lender retains the title of the car, make sure that you will pay off the debt on time. Otherwise, you will lose it.

Home refurbishment

If you want to improve your home whether to increase the sale value or you want to give it a designer touch, instalment loans will work best for you. Some people take out personal loans, but they can be a bit more expensive.

The bottom line

Whether you take out 12 month loans for your home improvement or wedding, make sure that you can pay it off on time. Some direct lenders provide these loans with amortisation feature. It means that your each instalment will go toward both the principle and the interest. Before you jump to any offer, you should do enough research so that you get the loan at a better interest rate. Never forget to ask about prepayment penalty and late payment fees. You can make payment in advance if your lender does not charge any fees.