What Are Installment Loans?
Installment loans are loans that are repaid within a set amount of time such as two weeks or two months. They differ between payday loans because the loan amounts for an installment loan and payback time is greater. Payday loans are typically loans that need to be paid back within 30 days max. Installment loans can be for several thousands of dollars. You will pay principal, interest and other charges on the loan that is typically six months.
Installment loans have interest rates that are typically higher than conventional loans from the bank or other financial institution. Renewing your loan will cost you more money in interest charges. Conventional loans are typically secured with collateral that may include jewelry, firearms or vehicles. Installment loans are also called title loans. These loans are usually payable within three months. You sign your clear title over to the title loan company. If you make all your payments according to the terms, then you will receive your title back from the title loan company.
Payday loans are intended to be short-term loans. They are payable within 30 days instead of three months. Most payday loans offer quick cash within one to two business days. These types of loans are great for people who don’t want to put up their vehicle or any other possession for collateral. They can be used for anything including car payments, rent, utility bills or other expenses.
Once you pay your loan back according to their terms, you will be allowed to borrow more money the next time you fall short. Installment or payday loans are nice to have for emergency reasons. Many people would rather pay interest to a payday or installment loan company to avoid asking family members for a loan. If you use these loans responsibility, then they can become a source of security.
The Benefits Of Obtaining A Title Loan
There are a variety of reasons people can benefit from a title loan. Unexpected expenses such as vehicle repairs, sick children and other situations can happen at anytime. If you need fast cash but you don’t want to ask family members, then a title loan could be the answer to your situation. Title loans are fast and easy to get. All you need is a vehicle in your name that has a clear title. You will also need a state-issued ID.
Title loans don’t require a credit check since your vehicle is the collateral. Most title loan companies offer better interest rates on title loans than payday loans. Most car title loans give you approximately three months to pay back the loan. The amount of money you can borrow will depend on your vehicle. Approval for your title loan takes only a few minutes. Most companies do not penalize you for paying the loan back earlier than expected. Title loans can be used to pay your rent, mortgage, utility bills or household needs.
Choose a company that offers fast cash either online or in person. Keep in mind that the title loan company can take ownership of your vehicle if you don’t pay the loan according to the terms. Make sure you read the contract completely before you sign. If you have temporarily lost your job and need cash, then a title loan is an alternative to borrowing money from your family members or friends.
Title lenders will often work with you if you need more time to pay back the loan. If you want a hassle-free way to get fast cash, then find a title loan company in your area that offers this service. Use the money for any type of expenses and make regular payments according to your contract.