Installment Loan vs. Title Loan
Sudden expenses such as property repairs may put you in a position where you need some extra cash. Two main options for getting the money are installment loans and title loans. But what's the difference, and which one is right for you? Before you apply online for any kind of loan, it pays to do some extra research.
Installment Loans Defined
Installment loans are loans that are paid back through a series of payments over time. This type of loan has three major key advantages:
- No credit check: You don't need to have an excellent credit rating to be eligible for a loan because your credit score is never required.
- Flexibility: It's possible to tailor the loan to your requirements, fixing the amount to borrow and the length of the repayment schedule. You can set your payments to be paid over a long period of time, involving many payments or a relatively short duration with at least two payments.
- No collateral: You don’t have to risk losing your personal assets to secure this loan.
Title Loans Defined
Title loans require collateral, which is often your car. For example, if you own your car outright it's possible to sign the title over to a loan company for a sum of cash up to 25 percent of the car's value. As you are using an asset as security on the loan, the loans are very short term and you may have to settle in as little as 30 days. If you fail to make the repayments, your car may be at risk. This type of loan has two key advantages:
- Fast repayment: The repayment of this loan typically requires to be paid back in 30 days or less, making it easier to track your repayment schedule.
- Keep your assets during the loan period: You are able to keep the asset you put up for collateral. For example, if your car is put on the title you can continue to drive the vehicle. You will lose the use of the vehicle only if you fail to make your payments.
Which Option Is Right for You?
If you want to pay back your loan fast, you may want to go with a title loan. However, you'll need to have something to offer as collateral, such as a car, and you may find that interest charges are particularly high. If your credit rating is not in good standing, installment loans are generally a better option as they offer no credit check, more flexibility, and longer time to repay.
Installment Loans With CreditBox
If you've decided an installment loan is the right option for you, it's time to get in contact with CreditBox. CreditBox installment loans make it quick and easy to get the cash you need. Simply apply online for instant pre-approval, and you could have funds in your account within 24 hours. It's a simple and effective way to fund your lifestyle without the need for collateral. Apply online today!