When an unexpected expense hits, like a car repair, a medical bill, or an urgent home fix, two of the most common ways to get fast cash in Claymont, DE are installment loans and title loans.
But which option makes more sense for your situation? Let’s compare how each one works so you can make an informed decision and get the help you need quickly.
How To Decide Between Installment Loans Or Title Loans In Claymont, DE
What Are Installment Loans in Claymont, DE?
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.
How Do Title Loans Work in Claymont, DE?
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.
Comparing Loan Amounts and Collateral
Both installment and title loans can help in an emergency, but the main difference lies in the collateral and maximum loan amount.
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.
Requirements for Each Loan Type
Collateral aside, you need other things to acquire both loans in Claymont, Delaware.
Here’s a quick side-by-side look at what you’ll need:
| Loan Type | Requirements |
|---|---|
| Installment Loan | State-issued ID, proof of income, checking account |
| Title Loan | Lien-free car title, state-issued ID, vehicle for inspection |
Whichever option you choose, you can expect a straightforward process and fast approval times.
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.
How to Apply for an Installment or Title 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 Claymont Loan Experts Help
Not sure which option is right for you? That’s what we’re here for. Our knowledgeable representatives can help you compare installment loans and title loans in Claymont, DE, and find the best fit for your situation.
Fill out the online inquiry form today to get started, and see how quickly you could get the cash you need.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
