With an installment loan, you borrow a specific dollar amount from a lender and you agree to pay the loan back, plus interest, in a series of payments.
Qualifying for an installment loan is a great way to pay for your car, home, higher education expenses or other personal costs. Home equity loans, which come in handy for home repairs and maintenance, are an example of installment loans.
Other examples of installment loans include mortgages, car loans, student loans, neighborhood loans and any other form of loan that involves paying back the original principal over a series of monthly, weekly, or other regularly scheduled payments.
Not everyone qualifies for installment loans, because it’s risky for lenders to give money away that they aren’t sure they’ll get back, so oftentimes credit scores, debt-to-income ratios and financial history are used to determine whether or not a borrower will qualify for the loan.
When getting a traditional installment loan from a bank or credit union, interest rates typically fluctuate based on credit scores, with lower interest rates only being offered to those borrowers with great credit, and those with poor credit either being disqualified from the process entirely, or being forced to pay high interest rates.
For newer installment loans, like car title loans, neighborhood loans and other similar types of secured personal loans, credit scores are typically ignored, and interest rates won’t fluctuate depending on financial history.
When you apply for an installment loan from a traditional financial institution, your potential lender is likely to want a great deal of information from you, including the name, address and phone number of your current employer, the number of years you’ve worked at your current job, your income level, and a variety of other related information.
However, when you apply for one of the newer types of installment loans (like car title loans), you typically won’t have to provide nearly as much information about yourself, since your credit score and other details won’t have any impact on the terms of your loan.
Before You Apply for an Installment Loan
Due to the fact that your credit score is such an important part of the loan application process for traditional loans, it is important to keep close tabs on your credit score in the months before you apply for an installment loan.
You also will want to make sure your credit reports are accurate and error-free before applying for an installment loan. You can (and should) request a free credit report once per year from each of the three major credit reporting agencies – Equifax, Experian and TransUnion – and should immediately address any errors that you find within them.
For traditional installment loans, good places to begin shopping include your local bank or credit union, or some other lender where you’ve already established a financial relationship. For the more modern types of loans, you can get the loan from anyone who offers them, and don’t need any previous relationship with the lender.
Car Capital Financial
If you are in need of immediate cash and you own your own car in full, or have nearly paid it off, then it’s likely that you would qualify for an affordable car title loan from Car Capital Financial.
With our loans, you trade temporary ownership of your vehicle’s title for instant cash, which can be delivered in as little as 30 minutes.
During the course of your loan, you’ll continue to enjoy complete access to and use of your vehicle, without any restrictions, and once you’ve paid back the loan in full, we’ll return the title to your name.
Our auto title loans are similar to auto pawn loans, but with us, you can keep driving your car!
Our title loans let you raise money fast, without forcing you to sell or stop using any of your valuable possessions, but better yet, they’re generally much safer than other forms of fast cash, like neighborhood loans, being a human guinea pig, or taking out a credit card cash advance. Title loans are issued based on the borrower’s ability to repay the loan.
To get the money you want right away, give us a call at 1-888-500-9887.