What is a Title Loan
The term car title loan is generally referred to as a short term, high interest loan similar to a pay day loan. Under the common definition these loans are for a small amount of money and for a short time. To get a car title loan, you give the lender the title to your vehicle. You also pay the lender a fee to borrow the money which can be very expensive and often translates into much higher interest rates than a traditional installment loan. You usually have to repay the loan in 30 days.
Traditional installment loans are a good alternative
Installment loans are a type of loan that you repay through regular, monthly payments. Unlike pay day and title loans, they don’t require a single lump-sum payment that many borrowers can’t afford. Installment loans spread out the cost, making them a more affordable alternative for many borrowers. Understand the facts and risks of different types of loans before you commit. United Finance offers traditional installment loans and has loan officers available at every location to discuss your needs.
Do traditional installment loans require a car title?
Depending on your ability to meet standard credit criteria traditional loans can require collateral for approval. Popular loan collateral is a title to a vehicle. While these loans use a car title they are very different from the loans that have become defined by the term car title loan or pay day loan.
Bad credit boosts
The best way to repair bad credit is to be responsible over an extended period of time. Pay on time, every time, and you’re on your way to better credit:
- Work with a lender, like United Finance Co., that understands the implications of poor credit. We report rigorously to the credit bureaus.
- Use an online bill payment service to schedule your bills to be paid automatically the day before your due date.
- Get a savings account at the same time as the loan.
- If you run into a situation where you know you’ll have trouble paying your monthly amount, contact United Finance immediately to discuss options to reduce the impact on your credit score.