What Installment Loan Terms Should I Know Before Applying?

It is always a great idea to familiarize yourself with the main installment loan terms before applying for one. This will, ultimately, help you find the right lender for your specific situation and receive the cash that you urgently need.

Below you will find a few most commonly used terms explained in simple words and a couple of tips on obtaining an installment loan in the shortest timeframe.

What Is An Installment Loan?

The first thing that we should do when it comes to explaining installment loan terms is to define an installment loan.

Installment loans are the ones that provide you with a sum of money upfront that has to be repaid in regular fixed amounts over an agreed-on term.

There are different types of installment loans and the amount that you’ll be able to receive would mainly depend on the type that you’re going for, and, of course, your creditworthiness.

Installment loans can be used for a wide range of different purposes. For example, there are mortgage loans, student loans, auto loans, etc.

Such loans are very common mainly because they have a simple structure. The terms of the loan are easy-to-understand for both the lender and the borrower, and that’s exactly why installment loans become the loan of choice for a lot of clients.

Important Installment Loan Terms to Know

Here are the main installment loan terms that you will, most likely, come across if you’re considering applying for one.

Personal Loan

Basically, any type of loan that has been issued for personal use can be considered a ‘personal loan’. Commercial loans, for example, that are given to businesses are not personal loans.

Not every installment loan is a personal loan and vice versa.

Short-Term Loan

A term is the period of time during which the borrower has to repay the loan fully. If this period is short (only a few months long), then the loan can be considered a ‘short-term’ one.

Even though there are short-term installment loans, the majority of them are actually long-term. Generally, the larger the amount you have qualified for, the longer it would take to pay it off (there can be exceptions, however).

Installment

In simple words, the sum you need to give back to the lender will be divided into several scheduled periodic payments or ‘installments. These payments usually remain equal throughout the whole paying-off period.

Online Installment Loans

Online loans are usually offered by online lenders. They are quite convenient as you’ll be able to complete an application form from the comfort of your own home.

Online loans are also popular among clients who need to receive funds as fast as possible and those who might experience difficulties getting approved by traditional banks.

Secured and Unsecured Loans

Also known as ‘collateralized’ and ‘non-collateralized’ loans. Secured and collateralized loans are the ones that are secured with a valuable asset (this can be a vehicle, a house, etc.).

Unsecured and non-collateralized loans do not require any form of collateral.

Some installment loans can be secured (like mortgage loans), while others are unsecured. The majority of personal loans are non-collateralized.

Why Consider An Installment Loan?

There are quite a few reasons why you might want to consider getting started with an installment loan offered by Missouri Title Loans, Inc.

• You’ll be able to receive same-day cash
• It’s okay if you don’t own a vehicle, the lender offers signature installments that do not require any form of collateral
• You can apply for the loan online
• It sometimes only takes 30 minutes to get the money you need, starting from the moment you step foot into one of the stores that are conveniently located throughout Missouri
• Your credit does not need to be perfect or even good in order to apply

How To Obtain An Installment Loan?

Our company representatives know that you are willing to get the emergency cash as soon as possible. That’s why the process of obtaining a loan does not include any unnecessary steps.

Basically, all you would have to do is make sure that you have all the required items (photo identification, proof of your income, and a valid bank account in your name) and complete a request form online. The company representative from the nearest store location will contact you and will help you with the rest of the process.

Get The Money You Need!

Now that you have familiarized yourself with all the necessary installment loan terms and know exactly how to define installment loans, you can start looking for a suitable lender. Missouri Title Loans, Inc. can become an option for those who want to avoid any hassle and get the much-needed sum in the shortest timeframe.

The best part is that with us, you might be able to receive the money the same day. Take care of your emergency expense today! Complete the online form now, and you’ll be one step closer to taking the burden off your shoulders.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.