The Ultimate Installment Loan Glossary Of Terms
There are some installment loan terms that can be intimidating for people, especially those who’ve never borrowed before.
There are many ways that installment loans can help you thrive in your financial life but understanding all the essential terms can help you know what to expect before you apply.
This article will cover the definition of "installment loan," installment loan terms, and how you can use them to work in your favor. With this knowledge, you can decide if an installment loan is right for you.
The Ultimate Installment Loan Glossary Of Terminology
What Is The Definition Of an Installment Loan?
An installment loan is a type of unsecured loan that can get you small amounts of fast cash, generally up to $1,500, after a short application process.
Installment loans are a way to borrow money differently than revolving credit. They’re called installment loans because you’ll pay back the loan in regular, predictable monthly payments called installments.
If you’re on a budget, an installment loan is a good option since it offers you the certainty of what you’ll be paying out each month.
Unsecured vs. Secured Loans
One important thing to understand is that a signature installment loan is an unsecured loan, which means that you’ll see wildly varying amounts that you can borrow depending on who your lender is.
Generally, secured loans that use some form of collateral (such as title loans) offer larger borrowing amounts since a car title secures the loan.
Another important term to understand with installment loans is "repayment period." Once you’ve submitted all the relevant documents for approval and received your money, the repayment period starts. You’ll be obligated to stick to the monthly repayment schedule for the time you’ve agreed upon with your lender.
Make sure to pay attention to the terms of your contract to ascertain how long you’ll be making those payments and how much you’re expected to pay.
Online Installment Loans
One of the most essential installment loan terms is “online installment loans.” Compared to traditional lending options, online installment loans are generally faster, with a quick application process that can be completed through an online form.`
Online installment loans usually take much less time than a traditional loan, which saves you time and stress. At Utah Title Loans, Inc., our process can take as little as 30 minutes. Once we receive your form, a representative will call you to walk you through the process and answer any questions you may have. All that's left is to visit one of our nearest locations to complete the process.
Another one of the most important installment loan terms is "verification." Your lender will need to verify your identity and ability to pay back the loan.
As such, you’ll need to provide the following:
- Your driver’s license or state-issued ID
- Proof of income (your most recent pay stub)
- Checking account statement open in your name
With these items, the lender will verify your eligibility for an installment loan.
When you visit the loan office, a representative will verify your required items and go through the final stages of the approval process, including some straightforward paperwork. If approved, you’ll get the money you need on the same day or the next business day.
A credit score measures how well you pay off your debts and may affect your eligibility for a signature installment loan.
While it may not disqualify you, a lender will run your credit before you are approved for a signature title loan. You’ll want to check with your lender regarding their specific terms before you apply.
How Utah Title Loans, Inc. Can Help You
Utah Title Loans, Inc. offers signature installment loans up to $1,500 to get you the cash you need for serious situations. It is important to remember that installment loans should only be used for emergencies.
For example, a sudden medical emergency, important home or auto repairs, or late utility bills are all excellent times to use an installment loan to cover expenses you can’t handle outright.
There's great news: Utah Title Loans, Inc. walks you through the entire process and will explain any installment loan terms you don’t understand.
Submit An Application Today!
Sometimes, sudden expenses can arise, leaving you staggering without the money to handle dire situations. Now that you understand all the important installment loan terms you need to receive one, you can decide when it’s right for you.
In these cases, use your understanding of signature loans to apply with Utah Title Loans, Inc., and get approved today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.