When you need fast cash for emergencies like car repairs or medical bills, two common options are installment loans or title loans in Claymont, DE. But which is the right choice for you?
Let’s break down the differences and help you choose the best loan for your situation.
How To Decide Between Installment Loans Or Title Loans In Claymont, DE
Installment Loans In Claymont, DE – What Are They?
Installment loans (also called signature loans) let you borrow money without using your car as collateral. You can borrow up to $1,500 and repay in scheduled payments.
To qualify, you need:
- A government-issued ID
- Proof of income
- A checking account
These Claymont DE installment loans are unsecured and work well for smaller emergencies or short-term needs.
Title Loans In Claymont, DE – How They Work
Title loans are secured loans where you use your vehicle title as collateral. Depending on your car’s value, you could borrow between $300 and $15,000.
To qualify, you need:
- A lien-free vehicle title
- A government-issued ID
- Your car for a quick inspection
You can keep driving your car while you repay the loan.
The Maximum Loan Amounts
Both installment and title loans in Delaware are short-term loan types. However, their maximum values vary dramatically.
As previously stated, you can borrow up to $1,500 with one of our signature installment loans. However, you can borrow from $300 to a whopping $15,000 with a title loan.
You might be wondering, why is there such a big difference between the maximums? Well, that leads us to the next biggest distinction...
The Collateral
Generally speaking, the presence of collateral (i.e., a valuable asset that secures the loan) reduces the level of risk for the lender (us, in this case). Therefore, we can offer you more money.
Thus, the maximum limits for a title loan are higher than a signature loan's limits because we use your car as collateral.
Naturally, not everybody qualifies for the largest title loan. But usually, it's a good option for those who have a substantial emergency to pay for.
To find out whether you'll gain approval for a big title loan, you need to estimate the value of your vehicle by considering these factors:
- Your car's age and mileage. We look at them in tandem to figure out whether you've run into the "high mileage" bracket, which ultimately lowers the vehicle's value.
- Your car's condition. Please be aware that we consider both cosmetic and mechanical conditions.
- Any modifications you've made to the car. Items like spoilers, decals, or custom paint jobs might lower the value. However, new engines and high-end tires could increase its worth.
- Your car's make and model. Naturally, luxury brands are worth more, so they stand you in good stead for acquiring larger loan amounts, especially when in great condition.
The Other Requirements
Collateral aside, you need other things to acquire both loans in Claymont, Delaware.
You'll need a state-issued identification card and a lien-free title alongside your vehicle for title loans. Your lien-free title ensures you have zero outstanding judgments against it, allowing us to freely put a lien on.
You need a state-issued identification card, proof of income, and a checking account statement for a signature installment loan.
Which Loan Should You Choose In Claymont, DE?
If you don’t own a car or need a smaller amount of cash, a Claymont installment loan may be right for you. But if you need more money and own your car, a Delaware title loan could be the better option.
Still unsure? Our friendly loan specialists are happy to guide you. We’ll help you compare installment loans or title loans in Claymont, DE and find what works best.
Start Your Application Today
Despite one loan requiring collateral, we've ensured our process for each loan is near-identical. We'll show you the deviations, when necessary, in the step-by-step tutorial below:
- Complete the form. Ensure you select the type of loan you want so you fill in the correct request.
- We'll call you to talk you through the requirements.
- For title loans, you can meet at your house or in the store. You must go to your nearest store for installment loans.
- Wait while we examine everything and confirm eligibility. If you are getting a title loan; we'll evaluate your vehicle at this stage.
- Once approved, receive your money.
Still Not Sure? Let Our Experts Help!
While you probably have a good idea about which loan you want, let our advisors clear up any concerns. We'll discuss your options and help get you the quick cash you need. Just fill in the form to get started.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
