How Do Title Installment Loans Compare To Traditional Installment Loans?
Those who need more money than a payday loan can provide, but don't want a traditional title loan may find that title installment loans or signature installment loans could be better options.
These two alternative financing products are fairly new but are types of hybrids available to many who need fast emergency funding. They aren't available at every private lender and some may offer one without the other.
Title Installment Loans
Title installment loans function the same way traditional title loans do in that they are a loan secured with your title. They mix the idea of fixed-amount installment loans into the repayment. You pay the same amount on the same day every month with title installment loans and that includes money going toward both interest and principal so there's a fixed date of payoff.
The primary difference in this type of loan compared to a traditional title loan is it can offer you more borrowed money since it's repaid over several months in installments.
Signature Installment Loans
Signature installment loans are a hybrid of personal loans like what you would get at a bank and payday loans. They are unsecured loans that are typically higher borrowed amounts than a payday loan.
Unlike a payday loan, a signature loan is repaid in equal payments on the same date monthly until the loan is fully paid.
Comparison To Traditional Installment Loans
Both of these types of loan options have some variations when you compare them to traditional installment loans issued by a bank. The biggest difference is that the amounts allowed for borrowing under these alternative financing methods may be larger.
A bank looks at your creditworthiness, income, and debt-to-ratio to determine how much you are eligible to borrow. Those offering title installment loans look primarily at the value of your car and your ability to repay. That is usually done by looking at your income rather than your credit history. Your debt-to-ratio isn't a factor.
Signature loans are more like the traditional personal loan offered at banks but has some distinct differences. Private lenders will check your credit history for this loan but emphasize your income. The application is simpler and even those with less-than-perfect credit may get approved, depending on other factors.
Key Differences With Traditional Loans
Both of these types of alternative financing solutions have two key differences from traditional personal loans. The first is getting approved. Both offer opportunities for those with problem credit to get financing for emergencies while a bank has stricter criteria for approval.
The second is the speed at which you get your money. Alternative lending can get you money within 48 hours while banks may take a few days, a week, or even two weeks. When there's an emergency like a busted water heater, you can't wait for the bank to process the paperwork.
What's Available In Nevada?
Every state is different and each has its laws on how alternative financing works. Nevada Title and Payday Loans Inc. offers signature installment loans with a maximum amount of $1,500. This is an unsecured loan for those who are 18 years old and older.
This loan requires you to have a driver's license or state-issued Id, proof of income, and a blank check from an open and active checking account. Your name must be a primary member of the checking account.
This private lender accepts your most recent pay stub as proof of income.
The lender will check your credit history during the application process so you may want to discuss it with them if you have imperfect credit or are worried about dropping your credit score.
You will be required to have an active checking account to qualify for a signature installment loan with this lender.
About The Process
Nevada Title and Payday Loans Inc. has a simple application process that starts with you entering basic information on an online inquiry form on the website. This is not an application, but it lets the lender know you want more information.
A loan representative from a store closest to you will call and discuss your options. You will then take your required items to the store to meet with a loan representative. That representative will check your items and guide you through the application.
The simple paperwork can be filled out in as little as 30 minutes and you will receive a decision while you are in the store. Those approved will get access to money either the same day or the following business day.
Get More Information
The online inquiry form will help you get the information you need from Nevada Title and Payday Loans, Inc. A signature installment loan may serve you better than title installment loans if you are working. A signature loan is unsecured and could get you more cash than what you can get with a traditional personal loan. It's an option worth checking out.
Fill out the form and submit it today to see if this is a good fit for your needs!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.