May 21, 2018
4 Reasons Why Short-Term Loans Are a Safe Option for Quick Cash
When you are needing to find a lender for your quick cash needs, you may be considering finding a short-term loan near me on Google. No matter what lender you go to, you want to make sure you find a company you trust. One that protects your information and has a transparent process. You want to make sure it is going to a positive experience, both on a personal level and on a financial level, and it won’t negatively affect your finances in the long-run.
When you choose a large bank or credit union near you in Kansas City for a traditional loan or line of credit, you usually made the choice based on trustworthiness. It’s easy to trust large banks that have been in business for hundreds of years. However, there are many parts of the lending process that aren’t completely transparent, such as how much interest you will rack up over the length of your loan or line of credit or how your ability to pay every month can greatly affect your credit score. In the beginning, it all seems great, but it can turn sour when have financial problems down the road. You can’t pay more than the minimum, racking up tons of interest. Or you forget to pay one month and see a major drop in your score.
Even though large banks and credit unions can seem like the best option for a loan, alternatives like title loans are really the hidden gem. They are a short-term loan solution that are more of a blessing than a burden. Here’s why.
4 Ways a Short-Term Title Loan Is a Safe Option for Quick Cash
Easy to pay back
The best benefits about coming to Midwest Title Loans in Kansas City for your loan needs is that our loans are easy to pay back. Our title loans are short-term, so they are based on a 60-day renewable contract. Even if you need more than 60 days to pay it off, a title loan is still going to be a short-term payoff. You’re not going to be paying it off for years to come and paying tons of additional interest. Long-term loans often take even longer, because you don’t add in the additional interest, which can be extremely expensive, especially with a high interest rate. Our short-term loans are meant to be easy to pay back, so that they just cover a gap in your finances. You can get back on your feet and free of the debt from your title loan quickly.
Smaller loan amounts
Since our loans are short-term, we don’t have as large of loan amounts, like with many long-term loans at banks and credit unions in Kansas City. Once we inspect your vehicle and analyze your needs and repayment ability, we’ll write up your title loan for an amount between $150 and $5000. Many lenders try to give you more than you need, but we want you to be able to pay off your title loan in a short time.
They don’t affect your credit like a traditional loan
When you take out a loan or line of credit at a bank in Kansas City, your credit score is on the line from the beginning. First, your credit report will be pulled, and depending on the lender, you may see a slight drop in your credit score, due to the fact that the credit pull was a hard pull. Then you have to make your monthly payments on time, or you will experience credit problems. If you miss more than one payment, you could see significant damage on your credit score. It’s hard to predict if you’ll experience a job loss or another loss of income so far in the future with long-term traditional loans. It is a risky process, and when you rack up lots of interest, you’ll be responsible to pay back even more.
Since title loans are short-term loans, they don’t work the same way with your credit score. You won’t see any significant changes in your credit score. You may see a slight rise, but since you’re not paying it off over the long term, you won’t run into the same issues you would with a traditional loan.
Don’t keep your title
When people hear about title loans, it can be worrisome. A lot of times, our Kansas City customers have questions like: Do you keep my title? Do you keep my car? The answer is no to both. We simply inspect your car to determine its worth, which helps us determine the amount of money we can loan you, and we don’t keep your title. We simply hold it temporarily, while you’re still paying off your loan. Once your short-term loan is paid off, we promptly give you your title back, along with a thanks.
Start Your Short-Term Loan Application at Your Nearby Kansas City Midwest Title Loans Location Today
Get started on your short-term loan with our quick and simple process, which includes filling out our online application and gathering your photo ID, car insurance, and lien-free title. Bring your documents into your nearest Kansas City Midwest Title Loans location and get your funds on the spot.
Whether you live in Independence, North Kansas City, St. Joseph, or Overland Park, we’d love to help you with your short-term loan. If you have a question or want more information, come by, send us a message, or call us today! We look forward to helping you.
Proudly Serving the Kansas City Metro Area
Midwest Title Loans proudly provides short-term loans to the Kansas City metro area, to customers in St. Joseph, Gladstone, North Kansas City, Kansas City, Grandview, Belton, Lee’s Summit, Raytown, Independence, Overland Park, Olathe, Lenexa, Shawnee, and the surrounding areas.