It’s a type of loan that you pay back in equal parts, called installments, over a defined period of time. For example, if you borrowed $1,000 with a four-month repayment schedule, each month you would pay $250 + interest. As with other loans, you have to pay interest that accrues during each installment over the life of the loan, often monthly. You can learn more here.
How is an installment loan different from a credit card?
As with credit cards, you must make a regular payment, usually every month, to the lender. There are some differences however:
- Interest Rate
- Available Credit
Interest Rate: Installment loan interest rates are often fixed for the life of the loan. In contrast, credit card interest rates can vary due to a number of reasons such as missed payments, change in credit score, or simply having a variable interest rate.
Available Credit: When you borrow money from a credit card, if you need more you can borrow more. Installment loans involve receiving a fixed amount of money. If you want more money you need to fill out a new loan application.
What are the different types of installment loans?
There are several common installment loans:
- Auto Loan
- Student Loan
- Personal Loan
- Car title loans
Auto Loans: These are typically used to purchase cars, and the vehicle being purchased is used as collateral for the loan. Normally the lender pays the full amount for the car and then the borrower pays them back in installments.
Mortgages: These loans can normally have terms lasting between 15 and 30 years. They are for enough money to buy a house, which is also what they use for collateral.
Student Loans: These loans are designed to help students cover post-secondary education expenses. They can help pay for things like living expenses, books, tuition, etc.
Personal Loans: These loans are usually not secured with collateral. Due to this, lenders must use your credit score to determine the amount of money they can lend you, at what interest rate, and for how long.
What if I need emergency money and I have bad credit?
If you have a qualifying car title in your name, you may be eligible for a title loan with LoanMart1.
Can I get an installment loan online?
Generally, you cannot get an installment loan online. They usually have long application processes that require a variety of different documents. Additionally, the installment loans generally have to be spent on specific things, usually whatever they are being used to purchase.
What’s an online title loan?
An online title loan is a secured loan where your car title is used as collateral. You pay the interest and a portion of the principle each month over the life of the loan. Your loan is secured with collateral, meaning you may get a better interest rate than an unsecured loan. Because most title loan lenders are more concerned with the value of your car and ability to pay, there’s no lengthy loan application process. There are only a few things you need to get an auto title loan:
- Qualifying title for the vehicle, with your name on it
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Proof of Residence (Certain pieces of mail)
- Photos of the front, back, and sides of vehicle
- Proof of Income
How do I get a copy of my vehicle’s title?
You might be able to get a duplicate title through your local Department of Motor Vehicles (“DMV”). Some DMVs are capable of providing expedited titles. Depending on the circumstances, LoanMart might be able to help you acquire an expedited title from the DMV, or direct you to the nearest one that is able to assist you. Adding LoanMart as a lienholder at that time may speed up your loan process.
How much does interest cost for an Online Title Loan?
The most you can charge for interest in Alabama is 25% a month. This means, if you take out a $1,000 loan, the interest on the loan can be up to 25%, or $250.
Are there any costs other than the interest for an Online Title Loan?
Applying for an online title loan is free. However, there may be other fees associated with the loan. Your lender should disclose them to you during the application process.
How long do I have to pay my Online Title Loan back?
Online title loans in Alabama have a maximum loan term of one month. Continuing from the previous example, if you borrowed $1,000 at an interest rate of 25%, meaning $250, you’ll have to pay back $1,250 (plus any additional fees) before 30 days has elapsed.
What happens if I fail to pay my Online Title Loan?
If you are unable to repay your loan within the time, your car may get repossessed. If this happens, the lender can sell your vehicle and keep all the proceeds. However, there is a right to cure period in Alabama of 30 days. This means, if you fail to repay your loan in time, you get 30 extra days to finish paying your loan before the lender can sell your car.
How to get an Online Title Loan with LoanMart
If you need emergency funds quick and don’t have time for a lengthy application, an online title loan might be just what you need. If you have a qualifying vehicle in your name, you may be eligible for an online title loan of up to $30,0001. Because LoanMart uses a streamlined application process, you may receive your money in 24 hours3.
With our easy process, we give you three ways to contact us that make it convenient for you:
- Visit a participating store
- Call us at 1-855-422-7412
- Sign up online without having to leave your home
Next, just follow these steps to get the money you need:
- Fill out the registration form
- Submit your important documents to your LoanMart representative
- Sign your LoanMart agreement
- Collect your funds1!
Need money fast? Don’t waste your time with online installment loans, come to LoanMart for an online title loan.