No matter how much planning you do, uncertain events are almost a certainty in life. Whether it’s an unexpected medical emergency, natural disaster, or a critical car repair, when you need money cash is usually hard to come by.
Depending on your credit score, the bank may not be willing to lend you a dime and everyone you know is as hard up for cash as you are. If you’re in Kansas, your next best option may be to apply for an installment loan, or a KC title loan to get the extra money you need.
But which loan is right for you? What’s the difference between the two?
Before settling on one or the other, it’s best to familiarize yourself with the two loan options. If you haven’t already guessed it by the name, an installment loan requires you to pay it back by installments. If you agree to (and are able to) pay back the loan on a tight set of dates, then an installment loan should be considered.
Payments are usually scheduled on a monthly basis with fixed interest rates.
An installment loan can be great for building your credit since they require multiple payments over time. Because installment loans are long-term, monthly payments are generally low and easier for you to repay, but remember that that will increase the amount of interest you pay in total.
Once approved, you can expect to receive a lump sum of cash from an installment loan within two business days after submitting your application. Sometimes you may have your loan approved in a matter of minutes. This is due to the loose policies in which lenders don’t require tons of documents from the borrower, encouraging speedy loan processing.
Installment loans are provided by numerous businesses who offer them exclusively. Some companies offer up to $4,000. Whether it’s a couple hundred dollars or a few thousand, chances are you will find the right loan for your needs without acquiring another financial burden. Do your homework and shop around for the best installment loan provider in your area or filter through them online.
The best thing about applying online is the fact that your installment loan is usually deposited directly into your bank account. This transaction can be as soon as the following business day. There is fast and immediate access to funds that help the consumer address whatever emergency expense he or she has, promptly.
Because of the generally lower interest rates, installment loans are considered by some to be a better alternative to car title loans. However, they are more difficult to get if you have bad credit, and you still need to check the fine print for what will happen if you find yourself unable to repay.
Car Title Loans
If you opt for a car title loan, you’ll need exactly that – your car title. Unlike an investment loan, car title loans require collateral – your car. Your car’s value will be determined by the lender. If your car is deemed worthy, the lender will grant you a loan based on its worth.
If you drive a clunker, don’t bother with a car title loan. You can also forget about a car title loan if you bought your car from your cousin’s father’s uncle who happened to have misplaced the car title ages ago.
On the other hand, car title loans generally have short terms instead of monthly installments. They are much easier to get than standard loans, because you are putting your car up as collateral.
Car title loans can come with higher interest rates than installment loans. Moreover, if you lose your car because you couldn’t repay the loan, some lenders will slap you with storage and repossession fees.
It should also be noted that if just one payment is missed or if you can’t pay the tacked on interest by the end of your loan term, chances are you’ll lose your car. According to Pew Charitable Trust, one-third of all title loan borrowers do not have another working vehicle in their households, so if this is your situation then you need to be sure you’ll be able to repay your car title loan on time each month before taking out the loan.
That being said, if repaying the loan within the time limit is not a problem for you, then a car title loan may work for the best. Remember, when applying for any type of loan, it’s better to get all the information you need to make the right financial decision for you. Read all of the fine print and decide whether you really need the cash.