If you find yourself in a jam, short-term loans, such as title loans and installment loans might help you get out of it. Although similar, these two loans are different and are beneficial for different circumstances. So, if you want to learn similarities and differences between these loan types, then this article is just for you!
The Simple Differences Between A Title Loan And An Installment Loan Explained
Although both title and installment loans are short-term loans, they are not the same. The nature of the loan and how you pay it back may differ.
Vehicle title loans require a lien-free vehicle title that will be used as collateral, while installment loans require a checking account statement and proof of income so the application can be reviewed for eligibility and repayment ability.
The payoff nature of these two loans differs as well. With a title loan, you must continue to pay off the minimum until the entire loan is paid back, but you can pay more than the minimum if you want. While you are paying off the loan, your vehicle is used as collateral.
With installment loans, you borrow a certain amount of cash and pay it off over a set amount of payments. When you make your payments, your balance decreases.
What Is A Title Loan?
A title loan is a secured loan that uses a lien-free vehicle title as collateral. Missouri Title Loans, Inc. currently offers qualified borrowers up to $15,000*. You must have a lien-free title in your name and bring the vehicle for inspection.
Benefits
Title loans have a short list of required items, but approval is still subject to the completed application and review. You can get up to $15,000 with Missouri Title Loans, Inc.
The main benefit of a title loan is its convenience. Whether you have good or bad credit, you can still apply and have chances to get approved. Another benefit of a title loan is that you still have access to your car. Even though the vehicle’s title is used as the collateral, you can still drive around, go to work, and use your vehicle as normal. This means that your life goes on as normal as you are paying off the loan.
When To Get A Title Loan
Title loans are an option if you need your cash fast and have a lien-free title in your name. Whether you need help paying the bills or need cash because of an unforeseen emergency, a title loan can get you the cash you need quickly.
What Is An Installment Loan?
An installment loan is a loan that is repaid through scheduled payments over time rather than all at once. Missouri Title Loans, Inc. currently offers unsecured signature installment loans of up to $1,500* that require ID, proof of income, and a checking-account statement.
Benefits
Online installment loans are a choice to consider if you need some cash and want a reliable payment process. Many people prefer installment loans because the fixed installments mean that you can see the light at the end of the tunnel, even before you pay your first installment.
When To Get An Installment Loan
You should get an installment loan if you need cash fast but do not have a lien-free title. More so, installment loans are an option if you know that you have a reliable income and track record that proves you can pay off the loan based on fixed installments.
How Is Repayment Different for a Title Loan and an Installment Loan?
Both loans require repayment according to the agreement, but the structure differs. A signature installment loan is specifically repaid through scheduled installments over time. A title loan is secured by your vehicle title, so you should review its payment schedule, fees, and collateral terms carefully before accepting the agreement.
What Are Common Types of Installment Loans?
Installment loans generally include loans that are repaid through a set schedule, such as personal loans, auto loans, and mortgages.
Need Cash ASAP? Get In Touch With Us Today!
Once again, the difference between both loan types circles around the nature of the loans themselves. While title loans use your vehicle as collateral, installment loans mean that you pay off loans based on fixed increments.
Regardless of which type of loan you need, Missouri Title Loans, Inc. can help you get the cash you need fast. The entire process for both loan types may take as little as 30 minutes which is a great timing if you need money to deal with an emergency. If you have any further questions, get in touch with us today, and our representatives from Missouri Title Loans, Inc. will be happy to assist you!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
