Did you know that the mean household income in the United States as of 2022 is $84,854.42? On the other hand, Missouri’s is nearly $8,800 lower, at only $76,060. Indeed, 36 other states have higher averages than the Show-Me State.
And as the average, it means half of Missourian households make less. So, even if MO has the 12th lowest cost of living in the U.S., it’s still possible to face financial difficulties here.
Sounds familiar?
If so, it may be time to consider applying for title installment loans in Springfield, MO.
If you’re unsure how these financial programs work, don’t worry. Below we’ll cover the facts you need to know about securing car title loans in Springfield, MO, so read on.
What Is a Car Title Loan?
A title loan is traditionally a short-term loan wherein a car’s title serves as collateral. As collateral, it means the vehicle title secures the loan.
Therefore, the car can serve as repayment if the borrower doesn’t repay the loan.
So if you apply for a Missouri title loan, you need to give your car’s title to the lender. The lender then takes the document and, in exchange, issues your loan money. You then get the title back once you’ve fully repaid the loan.
What Makes Title Installment Loans Different?
A car title installment loan works like a traditional title loan; you give the lender your car’s title to get a loan. The primary difference is that the former lets you repay your loan in increments. By contrast, you usually need to pay a traditional title loan back within a month.
Since you can pay back an installment loan in increments, you make smaller repayments. That makes it easier to repay than a traditional title loan which you often pay back with one lump sum payment.
Why Apply for Title Installment Loans
In 2021, 71% of Americans had a FICO credit score of at least 670. Such scores, in turn, are those classified as good (or better). As a result, consumers who have them often find it easier to qualify for loans.
Unfortunately, the remaining 29% of American consumers aren’t as lucky. Their FICO scores only fall under fair (580 to 669) or poor (579 and below).
Obtaining a traditional bank loan isn’t as easy for folks with fair or poor credit scores. At the very least, these consumers are more likely to face high-interest rates. The most disappointing part is that their loan application is at a higher risk of getting denied.
A loan rejection doesn’t hurt an applicant’s current credit score. However, the lender’s hard inquiry into the hopeful borrower’s credit history does.
Fortunately, title installment loans in Missouri don’t require good credit scores. That’s because lenders don’t have to carry out hard credit checks. So, you don’t have to worry too much about your loan getting denied, even if you have a bad credit score.
You might also want to consider title installment loans if you’re sure you can’t pay back a loan within a month. After all, these loans allow you to pay your dues back over several months. In most cases, you can choose a term of anywhere from six to 24 months.
Moreover, you can tailor your repayment schedules to suit your budget. For instance, you can have the lender put you on a monthly or bi-weekly payment agreement. And even if you end up paying your dues earlier, you don’t need to worry about pre-payment penalties.
What Are the Application Requirements?
Car ownership is one of the most crucial qualifications for a title installment loan. In short, you must be the owner of one of the 5.5 million registered vehicles in the Show-Me State.
Your vehicle must also have a clear title, meaning it should be lien-free. So as long as your ride is no longer under an auto loan, you meet this criterion. However, that also means you should have no other existing title loans on it.
Another requirement is verifiable proof of steady income. While title installment loan lenders don’t do credit checks, they need to know you can repay your loan. So, make sure to prepare salary, wage, or income documents.
You also need to provide verifiable proof of residence. Thus, you must present a valid ID proving you’re a U.S. citizen or a permanent resident. And of course, you must be at least 18 years old.
If you meet those requirements, you can apply for a title installment loan in Springfield, MO.
What Should You Consider Before Applying?
Before applying for a title installment loan, determine how much you need to borrow. From there, calculate the loan amount you can afford to take on. Don’t forget to factor in the interest rates and the term or length of time you have to pay back your dues.
How Much You Need
In many cases, it’s best to apply only for the amount you have a dire need for vs. the maximum amount you can borrow. After all, you want to ensure you can pay back your dues and not miss any payments.
So, it might be best to stick to an amount you can pay back on time instead of looking at the total amount you can borrow.
How Much You Can Afford
Suppose you need to and can borrow $10,000 using your vehicle’s title. In that case, compute your bi-weekly or monthly budget to see how much of a loan repayment it can accommodate.
To do that, determine your monthly take-home salary first. Then, from that amount, deduct all your household expenses and savings.
Now, let’s say that after all those deductions, you have about $1,000 left from your take-home income. In this scenario, the maximum monthly repayment you can afford is $1,000.
Hence, your monthly repayments shouldn’t go beyond that to ensure you can repay your loan.
But if you want to stay on the safe side, choose a term that allows you to pay a little less each month. That can give you some leeway in case you run into another financial emergency.
Loan Interest Rates
Remember: Title loans often have higher interest rates than prime bank loans. For that reason, it’s in your best interest to choose one with the lowest possible interest rate. That can help keep your overall loan costs affordable and, thus, easier for you to pay back on time.
Loan Terms
The shorter the term of a title installment loan, the fewer total interest fees it usually has. So if you’re sure you can pay back your entire loan in six months, consider doing so. That can help reduce your loan’s overall costs.
However, it might be best to go for a longer loan term if you want to pay less every other week or every month. Also, the lower your monthly dues, the more likely you can make your payments in full and on time.
How Do You Apply?
Once you’ve prepared your documentary requirements, you can begin your loan application online. This part entails filling out a short form where you must share a few things about yourself. After that, you only have to provide your vehicle title and valid proof of identification.
Once you’ve completed and submitted the form, your application undergoes review. This step includes assessing your vehicle’s value and your repayment ability. The lender also calculates your loan amount and term.
After processing and reviewing your application, the lender informs you of the results. If you meet the basic requirements, expect to hear good news about your approval.
Before finalizing and signing your loan agreement, read the fine print. The contract should break down your loan costs, particularly the interest rate. It should also explicitly note how often you need to pay and how much exactly you need to pay.
Apply for Title Installment Loans in Springfield, MO
And there you have it, your guide on title installment loans in Springfield, MO. Now you know they’re an alternative to traditional title and prime bank loans. You’ve also learned what to consider before and when applying for one.
So if you own a car with a clear title and need financial help ASAP, consider a title installment loan.
Are you ready to apply for a title installment loan with zero additional fees? If so, Quick Loans can help! Contact us now to begin your loan application.