If you are comparing title loans vs. installment loans, the right place to start is with the main difference between the two.
A title loan uses a qualifying vehicle title as collateral.
A signature installment loan does not use vehicle collateral and is repaid through scheduled payments.
Missouri Title Loans, Inc. offers both options for qualified borrowers, but each loan has different requirements, repayment details, and risks to review before signing any agreement.
This guide explains how title loans work, how installment loans work, what items are generally needed, and what to consider during a financial emergency.
Quick Answer: What Is the Difference?
A title loan may be reviewed if you own a qualifying vehicle outright and have a lien-free car title in your name.
A signature installment loan may be reviewed if you have income, an active checking account in your name, and the required identification.
Title Loans vs. Installment Loans: Which Option Is Best For You?
How Does A Title Loan Work?
A title loan is a secured loan that allows you to use your car’s title as collateral when taking out the loan amount. You need your driver’s license or state-issued ID, lien-free title, and car to start the title loan process.
Depending on the value of your vehicle and its condition, you might end up qualifying for up to $15,000. Some title loans are single payments, meaning you must pay the loan off within about a month.
When To Choose A Title Loan?
There are a few scenarios when going for a title loan instead of an installment loan that make more sense for you.
- You have a car that you own outright, and you are trying to qualify for a sum that is larger than $1,500
- You do not have a checking account that is necessary for an installment loan, but you do have a vehicle and a lien-free title with your name on it
- You have both a clear title and a checking account, but you’d prefer not to drive to the one of our stores
If you have bad credit, getting approved for a title loan may be more manageable as your vehicle’s title will secure it, not just your signature.
How Does An Installment Loan Work?
A signature installment loan is unsecured (you wouldn't have to provide any collateral to take out such a loan). You are asked to bring in your government-issued photo ID or driver’s license, an open checking account statement in your name, and proof of income (your most recent pay stub, for example).
The loan amount would depend on your ability to repay the loan, with $1,500 being the maximum one can qualify for. Installment loans can be repaid in fixed monthly payments (installments) over a few months or even years.
When To Choose An Installment Loan?
You might decide to pick an installment loan over a title loan if:
- You do not have a car, or you are still making payments on your vehicle (you won’t qualify for a title loan without a lien-free title)
- You do not want to put your valuable assets at risk, and you’d prefer to go for an unsecured loan
- You only need up to $1,500 to take care of your emergency
Remember that even though qualifying for a title loan can be a bit easier if you have bad credit, it does not automatically mean you’ll get declined for an installment loan if your credit is less-than-perfect.
How Can Missouri Title Loans, Inc. Help?
Our company offers both title and installment loans at competitive rates, and we are committed to helping you find the most suitable lending option for your case. If you opt for a title loan, you won't have to drive to the store to inspect your car – one of our agents will come to a location you have chosen to complete the process.
If you get approved, you will be allowed to continue driving your car while repaying the loan. No matter your loan, you might receive the money you have qualified for as soon as the same or the following bank day. Furthermore, the in-person process might take only 30 minutes, so you wouldn’t have to change your schedule to take out a loan at the last minute.
Is It Possible To Complete The Process Online?
You can submit your inquiry online. However, you would be asked to meet with a verification agent or visit one of our stores to finalize the process. But don’t worry. We have over a dozen convenience store locations throughout Missouri, and the closest one might be just a short drive away from you. By the way, your loan payments can be made from the comfort of your own home through our payment portal.
Submit Your Inquiry Today!
Whether you choose a title or installment loan is up to you. We at Missouri Title Loans, Inc. offer both lending options, and you’ll be able to enjoy superior customer service. By the way, getting started with us is as simple as possible.
You can complete an online inquiry form, and one of our friendly specialists will give you a call soon. Make the first step right now, and you might get the emergency cash today!
Frequently Asked Questions
What is the difference between a title loan and an installment loan?
A title loan uses a qualifying lien-free vehicle title as collateral. A signature installment loan does not use vehicle title collateral and is repaid through scheduled payments.
How do title loans work?
A title loan uses a lien-free vehicle title as collateral. The process generally includes starting an inquiry, speaking with a representative, bringing required items to a Missouri store, completing a vehicle inspection, and reviewing the agreement if approved.
What do I need for a title loan?
You generally need a state-issued photo ID, a lien-free car title in your name, and your vehicle for inspection.
What do I need for an installment loan?
You generally need a state-issued photo ID, an active checking account in your name, and your most recent pay stub to prove income.
How much may be available with a title loan?
Missouri Title Loans, Inc. offers title loans of up to $15,000 for qualified borrowers. Actual loan amounts vary.
How much may be available with a signature installment loan?
Missouri Title Loans, Inc. offers signature installment loans of up to $1,500 for qualified borrowers. Actual loan amounts vary.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
