Sometimes, quick cash is the thing you need. Crises like unexpected hospital visits or car repairs can leave you in utter financial dismay, especially if your savings pot doesn't contain enough to cover the damage.
That's where title and installment loans in Claymont, DE, come in to save the day. Either loan type gives you access to fast money when you need it most. But deciding between them involves understanding the differences, the requirements, and the process.
Luckily, we're here to divulge everything you need to know to pick which loan is your perfect match in Claymont, DE.
How To Decide Between Installment Loans Or Title Loans In Claymont, DE
Signature Installment Loans Definition
A signature installment loan lets you borrow up to $1,500 on a short-term basis. It's an unsecured form of loan, meaning you don't need to put up an asset to gain approval.
Your pay slip serves as enough proof to guarantee your loan. After that, you simply supply your signature and promise to repay it.
Due to the trusting nature of this loan type, some people call it a "good faith loan."
Title Loans Definition
On the other hand, title loans are a secured form of a loan. So, it requires collateral. In this case, you need to relinquish your vehicle's title to secure the loan.
We decide how much we can offer you by evaluating the worth of your car, truck, or van. As soon as we've thoroughly (but quickly) inspected your vehicle, we'll let you know how much money you can borrow, allowing you to decide whether you're satisfied before signing the agreement.
Contrary to public opinion, you can keep using your vehicle while you repay the loan. Just stick to the repayment plan.
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.
The Process Of Each Type Of Loan
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.
