How Are Signature Installment Loans Different From Title Loans?
There are many different methods of borrowing money that can be used to recover from a financial setback in the short term. Determining what type of loan is best for your situation is important. Take a look at how signature installment loans differ from title loans.
Learn About The Main Differences Of Installment Loans And Title Loans
An installment loan doesn’t require any form of collateral and usually involves less money borrowed; on the other hand, title loans require you to use your car’s title to secure the loan and generally allow borrowers access to larger sums of money.
Each loan type has its merit, but if you’re still a little confused, don’t worry! We’ll give you a detailed breakdown of each borrowing option, demystified, to let you choose the option that’s right for you.
What Are Signature Installment Loans?
An installment loan is a borrowing option that can get you up to $1500 to use at your discretion. Generally, your lender will issue the terms of the loan, to which you agree; afterward, you receive the money and start paying it back monthly.
These payments are referred to as installments. The ‘signature’ part of the loan refers to the fact that there’s no collateral on these loan types—it’s just your signature that serves as assurance you will repay it accordingly.
Naturally, because there’s no collateral to incentivize borrowers to repay their debt, we will request some additional information from you:
- Driver’s license or government-issued photo ID – To rule out fraud or unauthorized borrowing, our associates will kindly ask that you provide your DL or a government-issued form of identification with your photo on it. The alternatives to a driver’s license include a non-driver’s license, military ID, passport, or student ID.
- Proof of your income – Since there’s no security, lenders will often ask you to prove your income via the pay stub you've gotten most recently. This lets us know that you’re bringing in a regular income to ensure the loan will be repaid as promised.
- Open checking account statement listed under your name – Similarly, a simple statement coming from your checking account serves as a snapshot of your financial activity, showing that the money you earn goes into your account.
What Are Title Loans?
Utah Title Loans, Inc. also issues title loans, which work differently from signature installment loans. These loans require collateral, which is something you as the borrower put up as a promise to repay the loan. In other words, because there is something at stake, lenders feel more comfortable issuing loans, and borrowers are incentivized to repay the loan back.
The main difference between the two is the security; if you own your car outright, then you may be eligible for a car title loan. With this loan option, you generally have longer to repay the loan, and you can get up to $15,000 if you qualify for the maximum amount.
Of course, what you receive is subject to the loan associate’s discretion based on the condition, age, make, model, and maintenance of your vehicle. Here’s what you’ll need to apply with us:
- Your driver’s license or government-issued ID – Same story here: confirming your identity is important to us for legal and verifying purposes.
- Your lien-free vehicle title – It’s important that your car title doesn’t have any liens, if it does, that means there’s no incentive for the borrower to repay the loan and not much value for the lender to recover the loan if left unpaid. It is important to clear any liens and have them removed from your title before you apply.
- A brief inspection of your car – As mentioned above, you’ll need to visit the store or choose a location to meet with your representative to obtain a title loan. This is so that the associate can check your car’s VIN and review its condition.
How To Apply For Either Loan
Now that you know the difference between the two, you’re all set. Utah Title Loans, Inc. offers both signature installment loans and title loans that you might consider during a financial emergency. To apply for either loan, follow these easy steps:
- Submit your inquiry online.
- Expect an associate to phone you back and schedule a meeting.
- Attend the meeting with your required items.
- Go through the closing paperwork, and, if you are approved, receive your money later that same day or on the following business day.
Inquire Online Today!
When a life emergency happens, borrowing money might not be your first go-to, but it’s an option that’s there for you when you urgently need it. Utah Title Loans, Inc. offers both installment loans and title loans that you can consider for any unexpected medical bills, emergency car repairs, or business travel costs.
Whatever the case may be, you’re fully informed of how each loan type works and what you’ll need to do to get started. If you think taking out a loan is an option for you right now, consider completing the online form so that you're able to speak with a loan associate 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.