Installment Loan Information Guide
What are traditional installment loans?
Traditional installment loans allow borrowers to secure a specific amount of money and repay that money, with interest or fees, through a series of fixed monthly payments or installments. Typically, these loans have set terms and equal monthly payments and may be secured or unsecured. The size of the loan and the number of monthly payments will vary by state and by lender. Traditional installment loans may also be referred to as a personal loan or a consumer loan. They can be used for a variety of purposes, such as cash for a home or car repairs, school supplies, a new appliance, or a vacation.
Security Finance is licensed to offer traditional installment loans that vary in amount and terms based on the state where you live and apply for the loan. At Security Finance, our installment loans are designed to have equal whole dollar payments for a set number of months, typically 6 to 18 months. There are no balloon payments or prepayment penalties.
To apply for a loan, check for a branch convenient to your residence and apply in person or over the phone during business hours, or easily get started online now!
How do traditional installment loans work?
First, submit your application via one of the methods above. A team member at Security Finance may need to speak with you personally to complete the application process. The underwriting and loan decision process takes place during business hours, as shown on our website. Once you’ve been qualified for an installment loan, you’ll have a conversation with a Security Finance team member to review the terms of the loan and answer any questions to give you a clear understanding of the agreement. The next step, if the terms are acceptable, is to sign the loan contract and receive your funds. Your first monthly payment typically is due in 30 days, and each month thereafter until paid in full. Each payment or installment represents a portion of the principal amount borrowed, plus associated charges and fees as detailed in the loan contract.
You can make your payments with cash, check, money order, debit card. Debit card payments may be made over the phone, in the branch, or via the new Security FinanceSM Mobile App.
Traditional Installment Loans vs. Payday Loans
Payday loans originated as a single-payment loan that requires proof of a job and a checking account. The loan’s single payment was typically set up on a borrower’s payday. The lender holds a personal check written by the borrower for the amount of the principal plus a fee. The check, dated for the borrower’s payday, is then deposited on that date. Depending upon state regulations, a payday loan may be converted to payments over a set period of time.
Traditional Installment Loans vs. Revolving Credit
With an installment loan, a set amount of money is borrowed and then paid off in monthly increments. Once you pay off your installment loan, the money available to you does not automatically renew.
Revolving credit is an extension of a line of credit to an individual. The most well-known example of revolving credit is a credit card. You may borrow against it monthly, and the amount offered remains the same month over month – hence the word “revolving.” You aren’t required to use all of the credit available to you; rather, you pay the balance or a required minimum at the end of the billing period. Any money that you don’t pay off at the end of the billing period will accrue interest according to the terms disclosed by the lender. The credit line is automatically renewed as debts are paid off.
Conversely, a traditional installment loan will not automatically renew once it is paid off. This is because you typically get an installment loan when you have a specific need, such as for a flat tire repair, an unexpected bill, a trip, or a home repair. You simply pay the monthly installment, and the agreement is completed once you’ve honored the terms of the agreement.
Can you refinance a traditional installment loan?
At Security Finance, if you need additional cash prior to paying off your loan in full, you may qualify for another loan. A Security Finance team member can help you with this request. When you refinance an installment loan, the proceeds of the new loan – with its associated interest and fees – will pay off the original loan and you will receive the remaining proceeds. This new loan will be paid over a new fixed-term as a specified in the contract.
Can I get a traditional installment loan with poor credit?
At Security Finance, we do not require our customers to have perfect credit in order to be approved for an installment loan. Our expert team wants to help guide you to the best solution for your financial situation and match you with the most appropriate, affordable monthly payment available.
Where can I get more information about how loans and payments impact my credit score?
The Consumer Financial Protection Bureau provides tools to help consumers understand their credit reports and credit scores at https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/.
How do I apply for an installment loan?
Security Finance offers three easy ways to get started on finding a fast financial solution:
- Start the loan-application process online. START NOW
- Call your local branch. FIND NEAREST LOCATION
- Visit your nearest branch to speak with a representative in person.
After completing the inquiry, a Security Finance team member will contact you to discuss your loan needs. Should you choose to continue with the loan application, we will complete a verification and underwriting process to determine if you qualify for a loan in the amount you’ve requested. Our expert team can assist in finding an installment loan within your budget and suited to your specific needs. Get started today! Thank you for considering us for your loan needs.