Loan To Own

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You Will Know

The different types of consumer installment loans and

The right consumer installment loan for your needs

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Lending Terms Fixed rate loan Variable rate loan Annual Percentage Rate

(APR) Finance Charge  Collateral Secured loan   Unsecured loan

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The Three Cs Capacity - your present and

future ability to meet your payment obligations.

Capital - your savings and other assets that can be used as collateral for a loan.

Character - how you have paid bills or debts in the past.

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Annual Percentage Rate (APR) Table

 

 

The cost of a $5,000 loan over 5 years

APR MonthlyPayments

Total Cost

10% $106.24 $6,374.40

11% $108.71 $6,522.60

12% $111.22 $6,673.20

13% $113.77 $6,826.20

14% $116.34 $6,980.40

15% $118.95 $7,137.00

16% $121.59 $7,295.40

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Car Loans vs. Leases

Ownership Wear and Tear Monthly Payments Mileage Limitations Auto Insurance

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Obtaining a Car Loan

You can obtain a car loan from the following:

Credit unions Banks Thrifts Finance companies Dealerships

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Title LoansExample: Michael had $500 in unexpected medical expenses and needed a loan.

A finance company loaned Michael $500 at 20% interest per month.

At the end of the month Michael owed $600 ($500 loan + $100 interest).

Michael could not repay the loan at the end of the month, so he paid the lender $100 in interest.

At the end of the next month, Michael still owed $600 ($500 loan + another $100 in interest).

Michael did this for a year and paid $1,200 in interest, which equated to 240% APR.

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Unsecured Installment Loan Benefits

Fast approval rate Interest rates might be

lower than credit card rates