Loan To Own

1
Loan To Own
2
You Will Know

• The different types of consumer installment loans
  and
• The right consumer installment loan for your
  needs

3
Lending Terms

• Fixed rate loan
• Variable rate loan
• Annual Percentage Rate (APR)
• Finance Charge 
• Collateral
• Secured loan  
• Unsecured loan

4
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.

5
Annual Percentage Rate (APR) Table
 
The cost of a 5,000 loan over 5 years
 
6
Car Loans vs. Leases

• Ownership
• Wear and Tear
• Monthly Payments
• Mileage Limitations
• Auto Insurance

7
Obtaining a Car Loan

• You can obtain a car loan
• from the following
• Credit unions
• Banks
• Thrifts
• Finance companies
• Dealerships

8
Title Loans

• Example 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.

9
Unsecured Installment Loan Benefits

• Fast approval rate
• Interest rates might be lower than credit card
  rates