What’s The Definition Of An Installment Loan?
When you need fast cash in an emergency, you might turn to direct lenders to help you out, but what borrowing options do you have? Here’s the definition of installment loan and a helpful installment loans glossary to help you stay in the know.
An installment loan is a borrowing opportunity that gives you access to a lump sum of money you can use at your discretion. These loans are paid off in regular monthly payments called installments.
When you’re looking at alternative lending options for your financial emergency, you might come across this resource, and how it can help you out in a pinch. The rest of this article will give you the definition of an installment loan and a useful guide to the common terms in the industry.
What Is An Installment Loan?
An installment loan is a way that you can borrow money from a direct lender. Installment loans are unsecured, meaning that you don’t have to put up any collateral in order to secure the loan.
Of course, that generally means that your credit score will have to be passable, although some direct lenders may be willing to work with you even with poor credit.
When you take out an installment loan, you can get up to $1,500 that you can use at your discretion. We’ll discuss later about how you can use this resource to save yourself a headache farther down the road.
Once you’ve taken out the loan, you’ll be obligated to start making return monthly payments on it as agreed in the terms with your lender.
Lending Terms You Should Know
Installment
An installment is simply the amount of money you’ll pay each month toward the loan. The amount you pay will depend on the individual arrangement determined by your loan company, but if you ever want to review the terms of your Idaho Title Loans, Inc. loan, feel free to reach out to a representative.
Identification
You’ll need to have a valid form of ID and be over 18 to get a signature installment loan with Idaho Title Loans, Inc. Most often, customers use their driver’s license to fulfill this requirement, but you can also use a non-driver’s license, military ID, passport, or student ID.
Proof Of Income
Your eligibility for getting an installment loan may depend on your ability to prove you can repay the loan. Put simply, you’ll need to show your most recent pay stub to prove that you’re capable of repaying the loan according to the terms provided.
Unsecured
Most direct loans are unsecured, meaning that you won’t have to put any of your assets at risk in order to take out an installment loan. Title loans, for example, require you to use your car’s title as collateral, so if you don’t own a car, then an installment loan is probably the right option for you.
Creditworthiness
One important topic in the field of installment loans is creditworthiness. Lenders will often want to assess based on your credit history whether you’re likely to repay the loan on time. This risk is weighed when considering your eligibility for the loan and factors into your chances of approval.
Of course, you may still get a loan even with poor credit, so don’t hesitate to apply if you think it’s right for you!
What To Use A Loan For
Now that you understand the definition of installment loan, let’s discuss what you can use this type of loan for. People often use installment loans for these reasons:
- Covering home or auto repairs – Repairs can be expensive, yet important. Installment loans can give you the cash you need to cover sudden breakdowns or important repairs.
- Paying for rent or utilities – Rent and utilities are essential, and there are a host of consequences that come with nonpayment. As such, it may be better to take out an installment loan and tackle those expenses head-on.
- Consolidating debt – Lumping all your debt under one umbrella can cut back on fees, charges, and a massive headache of logistics.
How To Apply With Idaho Title Loans, Inc.
Make sure you’ve got your ID, open checking account statement in your name, and proof of income, and you’re ready to apply with these steps:
- Fill out the online form.
- Get in touch with a representative and schedule a meeting.
- Head to the store with your items and fill out some forms.
- Receive your money the same day or the following business day if approved.
Apply Today!
Now that you’re familiar with the definition of installment loan and the associated installment loans glossary, you’re all set to use this resource when it’s most relevant. Installment loans can really help you out of a pinch, so if you need fast cash during an emergency, complete the online form to get started with Idaho Title Loans, Inc. 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.