What Does It Mean To Get A Short-Term Loan?
Those who are looking for money to pay for an emergency will hear the term “short-term loan” but may not understand what that means. It's important to understand what a short-term loan is, what it can be used for, and the types of loans available in this category. Understanding these options helps you make a better decision.
Defining A Short-Term Loan
The basic definition of a short-term loan is repaid rather quickly either in weeks or months. Short-term loans are meant to be repaid in a year or less. They are typically easier to get than long-term loans because the requirements are lower.
A short-term loan typically requires proof of identity, employment, and proof of a certain income. Sometimes they require a bank account depending on the lender and the type of loan. Most require little to no collateral but, again, that depends on the loan.
Benefits Of Short-Term Loans
The key benefits of a short-term loan are that they are easier to get and you can get money fast. Most lenders offering these types of loans are private lenders so they don't have all the red tape that you encounter at traditional lenders like banks.
These lenders also don't rely on credit scores to determine eligibility. Many don't check credit reports and few report your application or loan to the three major credit bureaus. That allows for those with bad or no credit to apply. Those with marginal credit know their score won't be affected by this type of loan.
The other benefit is you get the money much faster than you would use a traditional lender. Most short-term lenders can get you money within 48 hours.
Types Of Short-Term Loans
You can get a short-term loan in several forms. Mississippi Title Loans, Inc. offers three types of short-term financing including title loans, payday loans, and signature installment loans. The one you pick depends on how much you need and your ability to repay.
- A Mississippi online title loan with us has a low loan amount of $300 and can go up to a maximum loan amount of $2,500. You keep your vehicle during repayment.
- A payday advance loan starts with a lower offering of $100 and has a maximum of $400.
- While a signature installment loan can be as much as $1,250.
The requirements for each are basically the same with a little variation between them. All three require a license issued by Mississippi or some other legal, picture form of state ID. A title loan also requires a vehicle in your possession and your name, and a clean title with no liens on it.
A payday loan and a signature loan require proof of your earnings like a stub showing your pay for the week, and a valid, working checking account in your name. Payday loans require you to have an unused check from the bank account while signature loans require a recent checking account statement with your name listed on it.
What's The Difference Between A Payday Loan And A Signature Loan?
Both types of loans serve the same purpose in practice. Both are unsecured loans offered to working people with checking accounts so they both act like a payday loan. The difference is in repayment.
A payday loan is paid out of your next paycheck, which is why it's a lower amount. The signature loan product is paid in installments. The details of repayment can vary.
How To Apply
The process for applying for short-term loans with Mississippi Title Loans, Inc. is quick and easy. Here's how it works:
- Submit the information request form available on the website.
- A trusted loan representative from a nearby store will call you to discuss your options.
- The next step is to meet with a store associate to validate your required items and fill out the application. Those wanting a title loan will need to bring their vehicle in to get an inspection. However, Mississippi Title Loans, Inc. also offers a title loan representative to come to you if you don't wish to come into a store.
- A store associate will meet you at any location you choose to do the vehicle inspection and go over your paperwork.
- No matter which option you choose, associates with this company strive to make the application process easy and quick. You can be done with paperwork and have a loan decision as fast as 30 minutes!
Getting your money happens quickly too. You can have available cash either the day you are approved or the next day of business.
Ask For Information
Those who need fast funding can consider any of these options with Mississippi Title Loans, Inc. It never hurts to ask for information so send over the online form for information today! It doesn't obligate you to take out a loan and you may like what you see.
Getting a short-term loan is an option that fits the needs of many people in these tough times. It could be a solution for you too.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.