Consumer Loan Q&A
What is a Consumer Loan?
A consumer loan is primarily defined as a loan for personal purposes. It is unlike a business loan or long-term home mortgage loan. Usually, consumer loans are for smaller amounts and are able to be paid back over a period of several months.
Are Consumer Loans at 1800NewRate secured loans?
At 1800NewRate, all of the loans we offer are secured by the title of a borrower's vehicle. Just like a car loan, the borrower enjoys full use of the vehicle, but the borrower allows the lender to be placed on the vehicle's title as a lien holder. Simply put, the title serves as collateral for the loan.
How are Consumer Loans repaid at 1800NewRate?
Consumer loans at 1800NewRate are paid back in installments. Unlike a title pawn where the full amount of the loan is due in 30 days, consumer loans at 1800NewRate are divided into low, monthly payments, paid over the course of several months. This allows borrowers to budget their loan payment without the fear of a balloon payment at the end of 30 days.
How can 1800NewRate help me improve my credit score?
In addition to low monthly payments, 1800NewRate also offers the opportunity to improve your credit. By reporting timely payments to the Credit Bureau
, 1800NewRate enables borrowers to use their consumer loan to improve their credit score. Some lenders do not run credit checks and do not report a borrower's repayments to the Credit Bureau
, leaving the borrower with the same credit score he/she had before they secured the loan. This method of lending may meet a short-term need for fast cash, but it does not assist borrowers, in the long-term goal of improving their credit score.