What is a Title Loan
The term car title loan is generally referred to as a short term, high interest loan similar to a payday loan. Under the common definition these loans are for a small amount of money and for a short time. Car title loans require you to surrender your vehicle’s title as collateral. These loans come with high fees and significantly higher interest rates compared to traditional installment loans. Typically, you must repay the loan within 30 days, making it a less sustainable option for borrowers.
Traditional installment loans are a good alternative
Traditional installment loans offer a sustainable and manageable way to borrow money. These loans are repaid through consistent monthly payments, unlike payday and title loans, which demand high-interest lump-sum repayments. This structure makes installment loans more affordable and less stressful for borrowers. Installment loans spread out the cost, making them a more affordable alternative for many borrowers.
United Finance offers traditional installment loans and has loan officers available at every location to discuss your needs.
Why Choose Installment Loans Over Title Loans?
– Lower Interest Rates: Traditional installment loans generally offer lower interest rates compared to title loans.
– Manageable Payments: Spread out over a longer period, installment loans are easier to manage with regular monthly payments.
– Credit Score Benefits: Successfully repaying an installment loan can improve your credit score, unlike the potential harm caused by title loans.
It’s crucial to understand the facts and risks associated with various loan types before making a decision. At United Finance, we provide traditional installment loans tailored to meet your needs. Our knowledgeable loan officers are readily available at every location to guide you through the process and help you make an informed choice.
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 payday loan.
Bad credit boosts
Improving your financial health and credit score is a long-term journey. Constantly making on-time payments is the most effective way to repair bad credit. At United Finance, we encourage responsible borrowing and timely repayment to help you achieve financial stability and improve your creditworthiness.
How we help:
- 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.
