Installment Loans for Short-Term – Supporters and Opponents 

Before the late 1990s, local businesses only offered short-term installment loans in certain geographic areas. Online lending has made it possible for borrowers to access a variety of short-term loan providers across the country. 



A short-term installment loan is a loan that allows borrowers to repay the loan over several months. It can be not easy to decide if this loan is right for you. There are so much data available that it can be confusing. There are both supporters and opponents of these types of loans. This article will explain why opposers and supporters feel the way that they do. 

Who and why support short-term installment loans? 

Consumers who require money fast can benefit from short-term installment loans. These loans allow consumers to access credit that they might not be able otherwise, allowing them to improve their financial stability. 

Short-term installment loans are also supported by those who believe that the interest rates associated with these loans tend to be lower as compared to other loans. This may encourage consumers to pay their loans on time. 

Short-term installment loans are encouraged by supporters who believe that borrowers can establish a payment history with lenders, which can help build their credit score over time and make it easier to borrow money in the future. 

Short-term installment loans are also supported by those who believe that it is beneficial for society in general because it discourages borrowers from engaging in risky behavior. If a borrower can borrow money quickly and easily, they may not resort to theft or other illegal income sources to solve their financial problems. 

Arguments that short-term installment loans can have negative effects on borrowers are supported by statistics about those who take out these loans. According to the National Conference of Bank Regulators data, over 60% of all borrowers are living paycheck to paycheck. 

Short-term installment loans are popular because they are easy to access and can be used when consumers face unexpected expenses, such as a medical bill or car repair. 

However, payday loan opponents believe that high-interest rates can cause borrowers to fall into a vicious cycle of debt they cannot escape. This creates a serious social problem. 

Why are those who oppose Short-Term Installment Loans? 

Short-term installment loans are opposed by Critics who believe that short-term installment loans can have negative consequences for consumers and society as a whole. 

Short-term installment loans are opposed by those who believe they exploit people in dire financial circumstances. They charge high-interest rates and prey on them. Those that oppose believe payday lenders exploit people who live paycheck-to-paycheck and will most likely end up paying higher fees than the loan amount. 

These types of loans have interest rates that are higher than average credit card rates, which is also argued by opponents. Exorbitant interest rates are considered immoral because many people won’t be able to pay back the loan even if they try. 

Opponents argue that even though these loans are supposed to be paid back within a set time, many borrowers simply roll over their loan into another because they don’t have the money to pay it off. 

These loans are often offered to people who can’t afford them, which causes them to get into debt that they can’t repay. 

Both supporters and opponents of short-term have a lot to offer online. Both of these people make excellent points about what can and cannot happen when people apply for loans. These types of loans are sought out by millions of Americans. They are often a better choice than traditional bank loans. 

It can be difficult to decide if a short-term installment loan is right for you. A company can assist you in making the right decision about the loan that is best for your financial situation. 

You can apply online at MyFundingChoices.comto find out if you are eligible and for how much. It is easy and there are minimal requisite requirements.

These are the three most important requirements: 

  1. You must prove you are at least 18 years old and a US citizen. 
  2. You will need to provide proof of income and employment.
  3. An active and open checking account must be in good standing. 

If you would have some questions that you would like answered before you apply you can reach out to us via phone at (866) 949-5040 or email at [email protected]

While this type of loan might not be the best for you, it is your decision.  If you decide it is what you need make sure you read and understand all the terms of the agreement you will be signing.