An online installment loan is a type of loan that is paid back in a series of payments, called installments, occurring at regular intervals. For example, if you borrowed a sum of money plus interest that equaled $1,200, with a loan length of one year, and a repayment interval that was monthly, you would have to pay $100 every month for one year.
What’s the difference between an online installment loan and a credit card?
Borrowers need to make regular payments, usually every month, on their online installment loans, just like credit cards. However, there are two major differences:
- Available Credit
- Interest Rate
Available Credit: When you get an installment loan, you receive a fixed, lump sum of money. A credit card gives you a line of credit that you can draw on as you need it.
Interest Rate: Interest rates of installment loans are often fixed for the duration of the loan. Credit card interest rates can fluctuate based on things like, missed payments, changes in credit scores, etc.
What are the different types of online installment loans?
Below are several of the common installment loans. There are others, like an auto title loan.
- Personal Loan
- Auto Loan
- Student Loan
Personal Loans: These loans are normally unsecured. Because of this, lenders must use your credit score and your income to determine the terms of your loan. The terms will usually be less-favorable than if you use collateral to secure your loan.
Mortgages: Mortgages are used to buy houses and homes—and are for large sums of money. They are secured using the property that the loan is being used to pay for.
Vehicle Loans: The lender normally pays the full value of the vehicle. The borrower will then pay them back, plus any interest, over the life of the loan.
Student Loans: These are unsecured loans intended to help pay for post-secondary education. They can be used for things like, books, tuition, living expenses, etc.
How much money can I get for an online installment loan?
The amount of money you are able to get for an online installment loan depends on the type of loan. For example, mortgages are for tens, if not thousands, of dollars because they are intended to cover the cost of a home. In contrast, personal loans may be for just a few hundred to a few thousand dollars, enough to cover an emergency expense. For the most part, if you are using collateral to secure your loan, like a car, you can often borrow more money for a longer time at a better rate.
What happens if I can’t pay back my online installment loan?
The first thing that can happen if you don’t pay your loan back is your credit score can be damaged. This may impact your ability to get a loan for things like a car, a house, etc. If your payment is over 30 days late, your lender may notify the major credit reporting agencies, Equifax, Experian, and TransUnion. They may report it again after you are 60, 90, and 120 days late. This means failing to repay a single loan can severely damage your credit history.
The lender may take borrowers to court to try to recover their money, resulting in an expensive legal battle. If the borrower loses, they will be forced to fulfill their obligation, plus pay their legal fees, and maybe the lender’s as well. They may have to declare bankruptcy if they cannot pay.
If the loan was secured for collateral, like a house, the lender may repossess it if the borrower fails to pay the loan. The lender will likely sell it to recoup their losses. Depending on state laws, if there is money left after covering the original debt plus fees, it will either go to the lender or the borrower.
Can I use my car as collateral for an online installment loan?
Of course! If you own a car with a qualifying title in your name, you can use the title as collateral for an auto title loan.
What’s an online auto title loan?
An online auto title loan is a secured loan with a quick application process. It uses your clear-and-free car title as collateral. You pay a portion of the principal plus interest each month for the duration of the loan. Like a vehicle loan, your online auto title loan is secured with collateral. This gives you access to better interest rates than unsecured loans. Unlike other secured loans, there is no lengthy application process because lenders care more about the value of your car and your ability to repay the loan. If you want an auto title loan, you’ll need just a few things:
- Qualifying title for the vehicle
- Photos of the front, back, and sides of vehicle
- Proof of Income
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Proof of Residence (Certain pieces of mail)
How do I get an online Title Loan with LoanMart?
It’s easy to sign up for an online title loan with LoanMart to pay for unexpected expenses without enduring a long application process. You may be able to qualify for a loan of up to $50,0001. Because of the short turnaround time of LoanMart’s streamlined application process, it may be less than 24 hours between when you submit your information and when you receive your loan3.
With our easy process, we give you three ways to contact us that make it convenient for you:
- Visit a participating location
- Call us at 1-855-422-7412
- Sign up online without leaving your home
Once you’ve how you want to get in touch, just follow these steps to get the money you need1:
- Fill out the registration form
- Submit your important documents to your LoanMart representative
- Sign your LoanMart agreement
- Collect your funds!
If you are looking for an online installment loan to pay for an emergency expense, consider an online title loan. The terms may be better than most unsecured loans and you also may get your money faster than with most secured loans.