1. Loan To Own

2. 2 You Will Know  The different types of consumer installment loans and  The right consumer installment loan for your needs

3. 3 Lending Terms  Fixed rate loan  Variable rate loan  Annual Percentage Rate (APR)  Finance Charge  Collateral  Secured loan  Unsecured loan

4. 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. 5 Annual Percentage Rate (APR) Table The cost of a $5,000 loan over 5 years

6. 6 Car Loans vs. Leases  Ownership  Wear and Tear  Monthly Payments  Mileage Limitations  Auto Insurance

7. 7 Obtaining a Car Loan You can obtain a car loan from the following:  Credit unions  Banks  Thrifts  Finance companies  Dealerships

8. 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. 9 Unsecured Installment Loan Benefits  Fast approval rate  Interest rates might be lower than credit card rates