An installment loan is a kind of loan that you pay back in even monthly installments, rather than paying the whole thing back at once in one lump sum.
What makes an installment loan secure is the collateral used to obtain it. In order to protect the lender from losing money, a valuable asset is used to obtain quick, convenient funds. Learn more about secure installment loans with this informational MaxCash article.
Examples of Secure Installment Loans
A mortgage is a kind of loan that is taken out in order to make purchasing a house a lot more feasible. Mortgage loans are an example of a secured installment loan because you put up the house that you are buying as collateral for the large amount of money that you would be borrowing. As long as you keep making all of the payments in a timely manner, you will not need to worry about anything.
Like mortgages, auto loans exist to make a common, but expensive purchase more accessible to people. Auto loans are a kind of loan that is secured by what you are using it to buy, which is a vehicle.
A title loan is a kind of secure installment loan that involves your car as part of the collateral. However, unlike an auto loan where the collateral is the vehicle itself, title loans use the actual vehicle title as collateral. A borrower’s vehicle title is kept secure by the lender until the loan has been fully repaid. Your lender will sign on as a lienholder to give them partial ownership of the car while you pay back your loan. A lot of title loan lenders let the borrower keep their car while making payments.
Boat loans are essentially auto loans, but for when you want to buy a boat. Your lender provides you with the money you need, which is then secured by the boat that you are using the money to buy.
Home Equity Line of Credit
A home equity line of credit is a type of loan that shares similarities with a mortgage loan in that your house is the collateral. Unlike a mortgage though, a home equity line of credit uses the equity that you have in your home as the basis for how much you qualify to borrow. These can be used for a variety of expenses rather than just buying a house, seeing as you already have one. Home equity loans are great for covering expensive home repairs.
Recreational Vehicle Loan
A recreational vehicle loan is another kind of vehicle related loan. Instead of it being a car or a boat however, this covers RV’s and campers. The recreational vehicle you are buying will be the collateral that makes the loan secure.
Benefits of a Secure Installment Loan
Although you may not care for the idea of risking a valuable asset through a loan, there are many benefits that come along with taking out a secure installment loan.
Such benefits include (but are not limited to):
- Lower Interest Rates – You could end up paying less money per month and over the course of the life of the loan with lower interest rates.
- Longer Repayment Terms – Because the lender knows that they are secure in the loan, they will often be willing to give you more time to pay back what you owe.
- Higher Borrowing Limits – Secure loans often let you borrow a larger amount of money, which is why they are so popular for major purchases.
How Could I Get a Secure Installment Loan?
One of the most common ways of going about getting an installment loan is by going directly to your bank. Banks are known for offering installment loans and are often willing to offer better deals—especially if you already have an account with them. Alternatively, if you do not wish to go through a bank to obtain the money you need, you could go to your local credit union as well.
You could also approach a private lender or lending company. These companies are often willing to be a bit more flexible and understanding, especially if you do not have a spotless credit report or high credit score.
That being said, try to make sure that your credit looks as good as it can before you try to get a secure installment loan. This will not only help you secure a loan more easily, but also help you obtain a better interest rate.
Get a Secure Installment Loan with MaxCash!
If you are interested in taking out a secure installment loan, but do not know where to go or what specific kind of loan to get, then come to MaxCash! We assist several people across the nation every day to acquire the installment loan they need. We may be able to do the same thing for you!
To get the ball rolling toward receiving your secure installment loan today, you can:
- Call us at (833) 207-9052 any day of the week
- Email us at Info@MaxCash.com
- Come to our physical office at 1270 E. Broadway Rd, Suite 208, Tempe, AZ 85282