installment loans explained

What Are Installment Loans? A Simple Installment Loans Definition

When it comes to borrowing money, you always want to be certain you know exactly what you’re getting into. Loans come with their own risks and rewards, after all; to that effect, here’s a simple installment loans definition you can rely on.

Installment loans are short-term loan that gives you access to a lump sum of money you pay back in regular payments called installments.

And that’s it. Now you know exactly what installment loans are should you ever choose to take one out. If you need further clarification, then this article will explore the definition of an installment loan in more depth so that you can make a sensible, informed financial decision in an emergency.

What Are Installment Loans?

Before diving into the details of installment loans, it’s important to address the simple question: “What are installment loans?”

Put simply, these loans are borrowing opportunities that you can take advantage of when you need urgent cash. As you begin to recuperate, you pay off the loan in regular monthly payments referred to as installments.

simple installment loans definition

Why Consider Installment Loans?

Now that we’ve gone over an installment loans definition, your next question might be why people choose to rely on this resource. Loans should be used for important expenses that you can’t cover with your own savings. Generally, our customers use them for the following:

  • Important home or car repairs – These are likely to be your two most valuable assets, so tackling an expensive repair before it escalates into a crisis is important. If you don’t have the money on hand, an installment loan can save you time (and potentially greater expense), restoring your home and car back to normal.
  • Rent or utilities – Missing a rent or utility payment can leave a mark on your credit record, which often sticks with you for a long time. Consider an installment loan to cover rent or utilities if your ability to pay is temporarily impaired.
  • Taxes – Yes, even the IRS themselves suggest taking out a loan if you can’t pay your taxes. The reason? They’re obligated to levy heavy fines and punishments for nonpayment. As such, needing to pay your tax bill is a good reason to consider one of our loans.
  • Business travel – When it comes to the growth of your business, expenses shouldn’t stand in the way. If you need to travel for business purposes, you might consider taking out one of our installment loans to cover the costs.

Installment loans are an investment in your financial future, but just like any other investment, they do come with a degree of risk. With that in mind, you should think carefully about when you take out a loan and consider it only during a financial emergency.

What You’ll Need

After understanding the installment loans definition, you should also know what you’ll need to get one. Utah Title Loans, Inc. asks that you bring the following when you meet with an associate:

  • Your ID – Normally, this will be your driver’s license, but you can use anything issued by the government that has your name and photo.
  • Proof of income – Your eligibility is based on credit and income. Generally, we ask you to bring your most recent pay stub so that we can verify your earnings and assess how much you can get with your installment loan.
  • Checking account statement open in your name – We also need to verify that you have a bank account and money going into your checking account.

installment loan written on paper

How To Get A Loan With Utah Title Loans, Inc.

Now that you know all the details, let’s discuss the specific steps you’ll need to take to apply for one of our loans:

  1. First, fill out the form provided online. Doing so lets us get in touch with you more easily and also gives us an idea of what type of loan works best for you.
  2. Our representative will call you to explain the approval process, during which you can schedule a meeting at one of our convenient store locations. You can use our store locator tool to find an office near you.
  3. When you head to the meeting, bring along your identification (driver’s license), proof of income, and open checking account statement.
  4. The associate will sit down with you to review these items for approval.
  5. Once they assess whether you qualify, you’ll get your money that day or on the next business day.

Submit Your Inquiry Today!

Now that you’re familiar with our comprehensive installment loans definition, you can seek an installment loan through Utah Title Loans, Inc. Installment loans can be very useful under the right circumstances to help you get back on your feet after an emergency. If you’re interested in what we offer, fill out the form online or call us directly 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.

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.