Types of Loans

 
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Types of Loans

Know Your Loans Before You Borrow

When money gets tight and you are unable to find the cash to get by, you may choose the option of borrowing. Millions of consumers benefit from the ability to borrow money and pay it back at a later date with several different types of loans. If you’re looking for a faster borrowing option to cover an emergency need, 800LoanMart offers Auto Title Loans to people that own an automobile.

With Car Title Loans, your automobile is used as collateral against the money you borrow. We’ll hold onto the title of your automobile until the loan is paid in full, at which point the title is returned to you. Car Title Loans allow you to access money you’ve invested in a automobile without being forced to sell it.

Because we want our customers to make the right borrowing choices, we’ve created a list of different types of loans and some of the benefits of each. We want customers to be educated and informed before they make such a significant financial decision.

Unsecured Loans

Unsecured loans may be higher in risk and often have higher interest rates. There is no requirement for collateral with unsecured loans. Credit cards are a common example of unsecured loans.

Secured Loans

When items you own are used as collateral, the lender has the option to take possession of the property if the loan is not paid back according to the repayment terms. This is called a secured loan. Lenders require you to have collateral to ensure that they can recover their losses if you stop paying on your loan.

Two common types of secured loans are installment loans and home equity loans.

  • Home equity loans are often used to consolidate higher interest debts or to finance home repairs. You can borrow money against the equity you have in your home, although you may lose your home if you default on your payments.
  • Installments loans are used to buy large purchases like a house or a automobile. When taking out an installment loan, it’s important to understand the details and read the fine print before signing any documents.

Car Title Loans

Car Title loans are short term loans that don’t have a minimum credit score requirement. At 800LoanMart, we offer a simple application process and may have you approved with just a few simple pieces of documentation. If you have the income to make monthly payments and equity in your automobile, you may be eligible for a car title loan.

Call us today at 1-800-LoanMart to discuss the benefits of Car Title Loans with a friendly customer service representative.

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