Absolutely Essential Signature Installment Loan Terminology To Know
Before attempting to obtain a loan, it would be great if you take a minute to familiarize yourself with the terms that the majority of lenders use. 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.
Essential Signature Installment Loan Terminology
The Definition Of Installment Loan
An installment loan is, basically, any type of loan that you would have to repay over a certain period of time 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 its turn, is one that 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 is securing the loan, and so on.
One of the main reasons why clients prefer to go for signature installment loans is because you wouldn’t have to risk your valuable item being taken away from you.
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 equal sums of money that are due as one out of many payments for something (in this case, for repaying a loan). These sums are spread over a period of time that both parties have agreed on (the lender and the borrower).
Financial Emergency
Financial emergencies are what loans can be used for. Those include medical bills, unexpected expenses (like vehicle repairs, for example), etc.
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 whenever it needs to check your financial history. They will usually be provided access to your payment habits and existing and past credit. 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 Obtain A Signature Installment Loan
Now that we have got the signature installment loan terminology out of the way, let’s figure out how you can actually obtain such a loan. Thankfully, Mississippi Title Loans, Inc. has made the signature installment loan process extremely easy for their clients.
- All you would have to do to get started is complete a form online.
- A representative will contact you in the shortest timeframe and go through all the required steps.
- Whenever you have a free half-an-hour or so, pay a visit to the nearest store (there are over 20 locations in Mississippi) with all the necessary items, and go through some paperwork together with the helpful agent.
- If everything is ok and you do get qualified, you’ll be able to receive up to $1,250 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, you are not required to have excellent credit, in order 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 Your Installment Loan Today!
Now that you know all this signature installment loan terminology, you will feel more confident when talking to a loan representative. But even though knowing the definition of 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.
Receive not only the cash you need but also the respect that you deserve. Fill out our online form 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.