What's The Difference Between a Bank Loan vs. Installment Loan?
At first glance, bank loans and installment loans can look very similar. After all, they both allow you to borrow cash. They both allow you to pay it back over a period of time. But are they really the same? Let's compare bank loan vs. installment loan and find out.
Bank Loan vs. Installment Loan: The Similarities
To some degree, they are the same. What we said at the start is correct. Both allow you to borrow money, and you will pay back the cash in equal installments. The similarities pretty much end there, however. A bank loan may not be for everybody, just as an installment loan may not be for everybody.
The Lenders Differ
As you can probably guess, bank loans will come from your traditional bank. You can find a bank to take out a loan in every city throughout Delaware. In most cases, banks are where you go to deposit cash into your account. They then use this cash to lend out money. Most often, banks lend in the form of mortgages, allowing borrowers to obtain large sums of money to buy a house.
Alternative lenders, like Delaware Title Loans, Inc., are not banks. We do not act as a bank. You can't come to us and deposit cash. Instead, we are purely lenders. We deal with installment loans and title loans.
Installment Loans Are Often for Smaller Sums of Cash
The next difference between a bank loan vs. installment loan is the amount of cash that you can borrow.
You can potentially borrow a limitless sum of cash with a bank loan. Assuming the bank knows that you have the ability to pay it back, they will probably loan you anything that you ask them for.
Installment loans are capped. As with banks, the amount that you can borrow will be based on your personal situation. However, with Delaware Title Loans, Inc., you will never be able to borrow more than $1,500 for an installment loan.
Those With Bad Credit May Be Able to Get an Installment Loan
Banks really don't like lending cash to those with poor credit. They see it as a risk. So, if you have a less-than-great credit score, you can probably assume that your bank will turn you away if you ask to borrow money.
When it comes to installment loans, there will often be a little bit more leeway. While you may not be approved for a loan with a terrible credit score, you can still inquire. Installment loan lenders tend to look beyond just the credit score, although that will be a factor.
Installment Loans Tend to Be Faster
Perhaps the major benefit when it comes to bank loan vs. installment loan is the fact that the latter tends to be a considerably faster way of borrowing cash.
A bank loan could take weeks to get approved (depending on how much you want to borrow). With Delaware Title Loans, Inc. and our installment loans, you could potentially be approved for a loan in 30 minutes. You could have that cash sitting in your bank account as soon as the same day.
This means that installment loans are often a far better fit for those who need to borrow money quickly. This is why you will often find an installment loan as an option for those who need to borrow cash in an emergency.
Bank loans tend to be an option for those that are not too fussed about how long they are waiting for the cash. Most bank loan borrowers tend to be doing so because they want to fund non-emergencies e.g., travel expenses, new car, etc.
Get An Installment Loan from Delaware Title Loans, Inc.
Now you know a little bit more about a bank loan vs. installment loan, you may be interested in the installment loans that we offer here at Delaware Title Loans, Inc.
Depending on your circumstances, you may be able to receive up to $1,500 today. You will just need the following:
- Your driver's license (or another state-issued ID)
- Your most recent paystub
- A checking account statement for an account in your name.
If you have that to hand, then you can start the process of getting a fast installment loan on our site. It begins by filling in a short inquiry form. After that, one of our team will reach out to you. After a quick trip to one of our local lending locations, you will be able to get a decision as to whether you have been approved for the installment loan or not – much faster than a bank.
Need Money Fast? An Installment Loan May Be an Option
While there are plenty of differences when it comes to bank loan vs. installment loan, perhaps the biggest is the speed. Installment loans can take just 30 minutes for a decision. If you need a fast installment loan, get started by filling in the form on this site today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.