June 10, 2019
Accidents happen. When they do, it’s easy to get discouraged and act like there’s no way to remedy them. But even for significant issues, like accidents that will take large payments to fix, there are fixes. Short-term loans are a way that you can make any accident that might arise in your life okay. Midwest Title Loans wants to help Kansas City residents understand the process behind applying for a short term loan, as well as clearing up any questions potential borrowers might have about the best short-term loan options.
What is a Short Term Loan?
A short term loan is any loan whose lifespan is supposed to be less than one year. This might be something that you set up with your parents or best friend, or it could be something a little more official – like a borrower’s set up from a well-trusted agency. Either way, there are advantages to short-term loans that don’t exist from other investments. Such benefits include:
- There is no long-term impact from interest. While you might feel as though you have your student loans under wrap, chances are they are taking advantage of you without you noticing it. Loans that have a 30-year repayment plan are designed to make the most money off of you as possible. So, without planning it, a loan that you initially took out in 2008 for $4,000 could add up to well over $6,000 by the time that you get your master’s degree – assuming you make no payments on it during that time. Although you will still have interest when you take out a short term loan, it will only gather during the period you pay it off, which is to say less than a year.
- Short-term loans are not supposed to be taken out for too much money. Lenders will let you know how much you are allowed to borrow for your short term loan period, and most will not exceed $1,500 maximum. The reason is that they want to ensure that you will be able to pay back your loan comfortably. They will not lead you down a lending path that could lead you to further financial ruin. If choosing to borrow from someone who is not an authorized lender, be sure to take out only small loans from them.
- The median cost for a short-term loan is $113. Whereas conventional loans can leave you out thousands of dollars in interest, most are barely out $100 including interest and fees.
- Short-term loans are usually available regardless of your credit. Many struggle to take out conventional loans due to their credit and worry that they will also not be able to take out a short-term loan. Fortunately, most short-term loan providers use other factors to determine whether to approve you for a loan.
- Short-term loan disbursement is quicker than your average loan disbursement. Even if your credit is okay, it can be a hassle waiting for conventional loans to disburse. If you need money fast, getting a short-term loan from a company like Midwest Title Loans is a great idea. Midwest Title Loans has a short application process which allows you to receive the funds for your loan the same day.
There are many different ways to get a short-term loan, and they don’t all involve working with a title loan company or payday loan company. However, because title loan companies are qualified at what they are doing, we highly recommend working with an authorized company like Midwest Title Loans.
Ask a Friend For a Temporary Loan
Missouri people are good, hardworking folks who like to lend a helping hand. Chances are you have a friend who is like this. Friends and family are fine to turn to for temporary loans if you need a small amount quickly. A good thing to do is to make sure that you have a contract set up between you and whomever you plan to take a loan out through. Even if you think you know them well, write down the terms of your borrowing. How much money is the person lending you? When do they expect to have it back by? Do they want it back in payments, or do they want it back in full? Recording these terms and having both parties sign off on them will save potential friendships down the line.
Take out a Line of Credit Through a Bank
Another option for Kansas City residents looking for a short-term loan is to seek a line of credit through a bank. Lines of credit are like credit cards in that they are meant to be a way to make small purchases using money that you don’t have but do intend to pay back. Many banks have lines of credit available to qualified customers that they are expected to pay back in a reasonable amount of time. However, this is not the best option for a short-term loan for all people. It requires a credit check, and anyone found with less than excellent credit may be either denied a line of credit or given a line of credit with a massive interest rate.
Get a Short-term Loan Through Midwest Title Loans
There’s no comparison to a short-term loan from Midwest Title Loans – this is without a doubt the best option for those looking for quick cash fast. A short-term loan will not leave you out as much money as a conventional loan, it won’t ask you to give away any sensitive information like what might be found in a credit check, and it only takes a little less than an hour to get set up with the cash you need.
To get set up with a short-term loan through Midwest Title Loans, contact us today. We only require that you bring in your license or another form of ID, a drivable vehicle, your vehicle’s lien, and any information you might need to verify your income. Once we have this information and have verified your age, we will discuss your borrowing terms and disburse funds once you’ve agreed to them.