Essential Signature Installment Loan Terminology: What You Need to Know
Before attempting to access these resources and obtain a loan, it would be great to take a minute to familiarize yourself with the terms and interest rate the majority of lenders use with these personal loans. If you do not have an asset that can be used as financial security, then the signature installment loan terminology below will, most likely, come in handy.
Finding out more about the type of loan that you want to go for will allow you to feel more confident when considering one. And the best part is that it will take you only a minute to figure out what all these loan-related words mean.
Key Signature Installment Loan Terms To Know Before Applying
The Definition Of Installment Loan
An installment loan is, basically, any type of loan that you would have to repay over a certain period with regular payments. You will have an exact schedule of when the payments should be made, which makes it relatively easy to manage such a loan.
A signature installment loan, in turn, would require only a borrower’s signature and his or her promise to give the money back.
One of the main features of such a loan is that it is considered to be ‘unsecured’ and does not require any form of collateral.
Collateral
A collateral is a personal asset or a valuable item that can be used as financial security when you borrow money. In a nutshell, such an item reduces the risk for the lender as the company or bank can seize the asset if you fail to repay.
For example, if you’re buying a house, the actual home becomes collateral. For a car loan, the vehicle secures the loan, and so on.
One of the main reasons why clients prefer to go for signature installment loans is that they wouldn’t have to risk their valuable items being taken from them.
Unsecured/Secured Loans
Secured loans are the ones that are backed by collateral. This means that the loans that require only your signature are ‘unsecured’ ones.
Installments
Installments are pre-determined payments typically scheduled monthly or biweekly, depending on the loan term. These sums are spread over some time that both parties have agreed on (the lender and the borrower).
Financial Emergency
Financial emergencies are what loans can be used for. These include rent/mortgage and utility payments, medical bills, unexpected expenses (like vehicle repairs, for example), etc., that not making payments on can worsen the situation and cause a late fee, higher-interest rates, shut-off, or even eviction.
If that is your case, then a loan can become a quick way to deal with the issue without you having to sacrifice other things in your life.
Credit Check
If you got this far in our signature installment loan terminology guide, then you are ready to find out what a credit check is.
A bank or a lender will perform a credit check if they need to check your financial history and credit score to qualify for signature loans for bad credit. They will usually be provided access to your payment habits and existing and past credit/debt. This information can be used to assess your risk level (as a borrower).
Your credit will, most likely, get checked if you apply for a signature loan.
How To Apply For A Signature Installment Loan
Now that we have got the signature installment loan terminology out of the way, let’s figure out how to apply for a signature loan. Thankfully, Mississippi Title Loans, Inc. has made the signature installment loan process extremely easy for its clients. Let's look at the overview of the loan process step-by-step.
- Fill out the online inquiry form.
- Wait for a representative to contact you.
- Visit the nearest store with the required documents.
- If you are approved, complete the paperwork to agree to the terms.
- Receive up to $1,250 in loan funds that day or the following business day.
FAQs
Is it worth applying if I have bad credit?
Even though the lender will perform a credit check when seeking signature loans for bad credit, you are not required to have excellent credit to qualify.
What items do I need to qualify?
You should bring your photo identification to the store, as well as proof of a source of income and a statement from your bank account.
Get Mississippi Installment Loans Today!
Now that you have read through the signature installment loan terminology and know how to apply for a signature loan, you will feel more confident when talking to a loan representative. But even though knowing the definition of an installment loan is important, the agents from Mississippi Title Loans, Inc. will make every single step of the loan application process clear to you, before proceeding any further.
Don’t wait! Start your application today and access up to $1,250 fast with Mississippi Title Loans, Inc. Fill out our online form today! Our customer services team is waiting to help you.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.