More than 10 million Americans use installment loans every year, but many borrowers still need clarification about basic installment loan terminology. To ensure you’re getting the best loan possible, you must know more than the definition of an installment loan before borrowing money.
This guide will cover the 12 most widely-used essential installment loan terms you should know. Plus, read through until the end to learn who qualifies for Delaware installment loans and how the application process works.
Let’s dive in!
The Installment Loan Terminology You Absolutely Should Know
Active Account
For installment loans at Delaware Title Loans, Inc., you’ll need an active checking account under your legal name. An active account doesn’t mean that you use it every day, but it does signify that the account is open and free to use without any pending holds by the bank. You can usually prove your account’s existence by providing your most recent account statement.
Collateral
Collateral is property or an asset you use to prove you’ll pay back a loan. If you don’t repay the loan, the lender has the right to seize your collateral.
Installment loans from Delaware Title Loans, Inc. do not require collateral.
Credit
Credit can refer to a few things, but in the case of installment loans, it usually refers to your credit score. This number gives lenders an idea of your debt and ability to repay debt, although some lenders, like Delaware Title Loans, Inc., do not require good credit to apply for a loan.
To discover your credit score, you can get a free copy of your credit report through AnnualCreditReport.com once a year.
Installments
Installments are payments made over time and on a set schedule to repay a larger debt. You can get a personal installment loan for small, unexpected expenses, or you may have larger installment loans in the form of mortgages and car payments.
Lump Sum Payment
A lump sum payment is one single payment used to pay off a debt. This is the opposite of installment payments.
Loan Terms
Your loan terms are the conditions around the money you borrow. This could include a payment plan, interest, additional fees, and other details.
Online Form
This installment loan terminology is specific to when you apply for an installment loan through Delaware Title Loans, Inc. You’ll be asked to fill out an online form/general form/inquiry form. This refers to a short form on our homepage that asks for your contact information so our representative can help you complete your application.
Proof Of Income
You’ll need to show proof of income to qualify for an installment loan. This is usually done through your most recent pay stub, but Delaware Title Loans, Inc. may also consider income from pensions, disability, Social Security, alimony, or other sources. Speak with one of our representatives to see if your income qualifies.
Variable Rate vs. Fixed Rate
A variable-rate loan changes the interest rate over time. It could increase or decrease depending on various factors.
On the other hand, a fixed-rate loan establishes the interest rate at the beginning of the loan. It remains the same throughout the loan’s life.
Secured Loan vs. Unsecured Loan
Secured loans require collateral, and unsecured loans don’t require any collateral.
How To Get A Delaware Installment Loan
Now that you know the key installment loan terminology, it’s time to learn how to get your own Delaware installment loan.
Requirements
- Driver’s License or State Issued I.D.
- Proof of income (your most recent pay stub)
- Checking account statement in your name
Application Process
The signature installment loan application process starts on our homepage. Here's how it works:
- Fill out the online form with your contact information.
- One of our knowledgeable reps will contact you to discuss the loan, answer your questions, and arrange a time to meet.
- You can choose from one of our many Delaware Title Loans, Inc. locations to meet with the rep and present your documents.
- After document verification, you’ll quickly run through the rest of the paperwork with our representative.
This process can take as little as 30 minutes! If approved, you can receive up to $1,500 that same day or the following business day.
Apply For Your Loan Now!
Sifting through installment loan terminology may not be exciting, but it’s an important step for responsible borrowers. If you’re facing financial uncertainty and are looking for an installment loan to help, it’s important to understand terms like “unsecured loans,” “installments,” and “lump sum.”
Now that you know more than just the definition of an installment loan, you’re better prepared to apply. Get in touch with one of our representatives through the online inquiry form to see if you qualify for up to $1,500 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.
