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Which Type of Loan Is Best for Me?

Which Type of Loan Is Best for Me?

When you are in need of additional income, there are so many options out there, and it can be hard to figure out just which one is right for you.

There are traditional loans and lines of credit that you get from a bank or credit union, which is the route that is typically taken by people in need of a loan. Then, there are payday loans. And there are also title loans, which you can get from a title loan provider like Mid-South Title Loans.

Each of these loans is fit for a specific situation and individual, and here’s how to tell which one is right for you.

How to Decide Which Type of Loan Is Best for You

Traditional loan

Traditional loans are usually given out at banks, and they are typically done through a long, thorough process. Many banks in Tennessee ask for income verification and housing verification, in addition to a credit or background check, when you need to loan money from them. Depending on the loan type you’re looking for, the credit check may even result in a hard credit pull that can lower your credit score a couple of points.

Traditional loans are usually a long-term solution. They are used to cover long gaps in finances or make a large purchases. In addition, the process can take weeks to get approved and get the money you need. Traditional loans are more flexible in terms of amount given, and they can be given out in very large amounts.

Traditional loans’ monthly payments are usually reported to the three major credit bureaus. When you pay them back every month, you will see a rise in your credit score, or you will see a drop if you fail to pay your monthly payments on time.

Line of credit

A line of credit is also a traditional solution for extra money, and the amounts can range from a couple hundred to many thousands. Even though it may seem like a good idea to max out your line of credit at some point in time, you will be paying for it in interest.

A line of credit is often used as a safety net to cover any gaps in finances or emergency situations, and your line of credit will be increased based on your ability to make your monthly payments. While it can be exciting to get an increase in your line’s amount, it comes with the price of paying more interest on the extra money. Lines of credit are usually kept open for long amounts of time, and the process to open one can be time-consuming. There are very few lines of credit that don’t require a credit check, if any, so bad credit will likely be denied.

Payday loan

A payday loan is a short-term solution for financing that can be obtained quickly. Many payday loan providers can get you approved and get your money within a day, although some take a couple of days. This is an ideal solution for people who have an emergency situation and require additional funding fast. Payday loans always require a credit check, so you’ll need to have decent credit to get any money.

Payday loans typically come in small amounts. Anywhere from $50 to a couple thousand dollars is what can be expected, when you go to a payday loan provider. Payday loans are known for their extremely high interest rates, and if you take a long time to pay them back, you can be in over your head very quickly, depending on how much money you received. Unless you can pay your loan back within a few weeks, a payday loan is a risky choice for a loan option.

A title loan

A title loan is similar to a payday loan in that it takes a short amount of time to get, is a short-term loan, and is usually a smaller amount than a traditional loan. One of the major differences between payday loans, as well as traditional bank loans and lines of credit, is that there is no credit check required for a title loan. A title loan provider mostly only needs to know if you have a lien-free title, which will be used as collateral until your title loan is paid back. There are also fewer requirements than a traditional loan or line of credit from banks and credit unions and no verification documents needed, other than your title.

Title loans at Mid-South Title Loans in Memphis, Tennessee are under 30-day renewable contracts, in case you need additional time to pay back. We want you to pay the least amount of interest and are here to cover small gaps in financing. You can receive up to $2500 at one of our three Memphis, Tennessee locations, determined by your online application and your car’s value. The process to get your title loan can take as little as 20 minutes, and we’d love to inspect your car to determine its value for free at any time.

Get a Hassle-Free Car Title Loan at Memphis’ Mid-South Title Loans Today

If you find out that a title loan is the best option for you, we’d love to help you get your money quickly at any of our three Memphis, Tennessee locations. Our customers love that our process is simple, quick, and painless, in comparison to traditional loans, lines of credit, and payday loans. Pay the least amount of interest, enjoy no credit checks, and work with a lender you can trust at Mid-South Title Loans.

Want to get additional information or ask a question? Get in touch with us now by calling your nearby Mid-South Title Loans location, or you can send us a message online. Also, simply stop by a store today!

Proudly Serving Memphis, Tennessee & the Surrounding Cities

Mid-South Title Loans proudly provides car title loans to Tennessee’s Memphis and Shelby counties, including the cities of Germantown, West Memphis, Midtown, Cooper-Young, East Memphis, South Memphis, Parkway Village, Whitehaven, Berclair, Raleigh Bartlett, Southaven, and the surrounding areas.

 

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OUR LOCATIONS

1680 Winchester Rd
Memphis, TN 38116
Phone: (901) 346-1040

4965 Summer Ave.
Memphis, TN 38122
Phone: (901) 821-9211

2798 S. Perkins Rd.
Memphis, TN 38118
Phone: (901) 794-5460