If you’re like most people, you probably don’t have a lot of extra money sitting around. That’s why personal loans can be such a helpful way to get the cash you need. Whether you’re looking to consolidate debt, make a large purchase, or just get through a tough financial situation, personal loans can give you the flexibility and affordability you need.
What personal loans are available in Missouri?
For residents of Missouri, there are a few different personal loan options to choose from. The best offers will depend on your credit score and income level, but here are some of the most popular personal loans available in Missouri:
-Title Loans: A title loan is a short-term loan that is secured by your car’s title. This type of loan is available to borrowers with bad credit, but it comes with high interest rates and a short repayment period.
-Payday Loans: A payday loan is a short-term, high-interest loan that must be repaid on your next payday. This type of loan is not ideal for borrowers with bad credit, as it can be difficult to repay the loan in full on time.
-Unsecured Personal Loans: An unsecured personal loan is a loan that is not backed by collateral. This type of loan is available to borrowers with good or bad credit, but the interest rates are usually higher for those with bad credit.
-Secured Personal Loans: A secured personal loan is a loan that is backed by collateral. The most common type of collateral used for secured loans is a home or vehicle. This type of loan is available to borrowers with good or bad credit, but the interest rates are usually lower for those with good credit.
Which personal loan option is best for you will depend on your individual financial situation. If you have good credit, you may qualify for a lower interest rate and better terms. If you have bad credit, you may still be able to get a personal loan, but it will likely have a higher interest rate and shorter repayment period.
If you’re not sure which personal loan is right for you, we can help. We’ve helped thousands of Missouri residents get the financial help they need, and we may be able to do the same for you. Give us a call today to learn more about your options.
Pros and Cons of Getting a Personal Loan in Missouri
There are a few things to consider before you apply for a personal loan, no matter what state you live in. Here are some of the pros and cons of getting a personal loan in Missouri.
- Personal loans come in one lump sum, usually with a fixed interest rate, which helps keep monthly payments on track.
- You can get money quickly, sometimes within as little as a day, depending on the lender you choose.
- Many are unsecured loans, which means you don’t need collateral like your home or car to borrow money.
- Interest rates are much lower than those of payday loans, which charge upward of 400 percent.
- Flexibility and versatility allow you to use a personal loan for almost any purchase.
- Unlike highly risky payday loans, personal loans give you a reasonable amount of time to repay the loan.
- You may have easier payments if you consolidate debt and have a single, fixed-rate monthly payment instead of several accounts to manage.
- APRs are generally higher than those of some secured loans.
- If you have a low credit score, you might not qualify.
- Some lenders charge fees, like origination, late and prepayment fees. The lower your credit score, the more likely you are to have a lender that charges more fees.
- Some lenders don’t allow co-signers, which means you can only use your credit score and history to qualify.
- You’re adding another bill to your monthly payments, which might stretch or even break your budget.
- You can increase your overall credit card debt if you use it to consolidate your debt but continue to spend on your credit cards.
- Personal loans often have higher monthly payments than the minimum payment on credit cards, which can make it harder to manage your finances.
What can I use a personal loan for?
Personal loans can be used for almost any purpose. Common uses include debt consolidation, home improvement projects, medical bills and refinancing an existing loan.
Loans can also be used for other purposes, like paying for a wedding, vacation or other large purchase.
How to get a personal loan in 8 steps
There are many reasons to get a personal loan, like an unexpected hospital bill or a necessary car repair. If you’ve decided that a personal loan is the right type of financing for you, follow these eight steps to apply.
1. Run the numbers
The last thing you or lenders want is for you to take out a personal loan and not be able to afford to pay it off. While lenders typically do their due diligence to make sure you have the ability to repay the debt, it’s smart to run your own numbers to make sure it’ll work out.
Start by determining how much cash you’ll need, keeping in mind that some lenders charge an origination fee, which they deduct from your loan proceeds. Make sure you borrow enough to get what you need after the fee.
2. Check your credit score
Most lenders will run a credit check to determine how likely you are to repay your loan. While some online lenders have started to look at alternative credit data, they will still typically look at your credit score and credit worthiness.
The best personal loans typically require that you have at least fair credit — usually between 580 and 669. Good and excellent credit above 670, however, will give you the best chance of getting approved with a competitive interest rate.
3. Consider your options
Depending on your creditworthiness, you may need a co-signer to get approved for a personal loan with a decent interest rate. If you can’t find a co-signer, or the lenders you’re considering don’t allow co-signers, you may have the option to get a secured personal loan instead of an unsecured one.
Secured loans require collateral, such as a vehicle, a house or cash in a savings account or certificate of deposit, in exchange for more favorable terms. If you fail to repay the loan, the lender can seize the collateral to satisfy the debt.
4. Choose your loan type
Once you know where your credit stands and you’ve considered your options, determine which type of loan and what maximum loan amount is best for your situation. While some lenders are flexible in terms of how you use the funds, others may only approve loan applications if the money will be used for specific purposes.
5. Shop around for the best personal loan rates
Avoid settling for the first offer you receive; instead, take some time and shop around for the best possible interest rate. Compare several types of lenders and loan types to get an idea of what you qualify for.
6. Pick a lender and apply
After you’ve done your research, pick the lender with the best offer for your needs, then start the application process.
The lender will also request you share how much you want to borrow. It may then give you a few options to consider after a soft credit check. You’ll also have a chance to review the complete terms and conditions for the loan, including fees and your repayment period. Read through the loan agreement thoroughly to avoid hidden fees and other pitfalls.
7. Provide necessary documentation
Every lender is different when it comes to what you need to apply. Once you submit your application, your lender will likely ask you to provide some additional documentation. For example, you might need to upload or fax a copy of your latest pay stub, a copy of your driver’s license or proof of residence.
8. Accept the loan and start making payments
After the lender notifies you that you’ve been approved, you’ll need to finalize the loan documents and accept the terms. Once you do this, you’ll typically get the loan funds within a week — but some online lenders get it to you within one or two business days.
When you are approved, start keeping track of when your payments are due, and consider setting up automatic payments from your checking bank account. Some lenders even offer interest rate discounts if you set your account to make autopayments.
Consider paying extra each month. While personal loans can be cheaper than credit cards, you’ll still save money on interest by paying the loan off early. Adding even a small amount to your monthly payments can help you do so.
Before you take a personal loan
- Check your credit score. Learn about your personal loan options based on your credit score. This will give you an idea of what rate and payment to expect as you shop for loans. You might decide to postpone getting a loan and instead take steps to build your credit in order to get a lower rate or a larger loan.
- Compare your options. Interest rates on personal loans for excellent credit start around 6% APR, but if you can qualify for a 0% interest credit card — and pay off the balance within the promotional period — then you may be better off with the credit card. Here’s how to compare personal loans and credit cards.
- Find a co-borrower. If you have bad credit, having a co-signer with good credit allows you to piggyback on his or her creditworthiness and potentially get a better rate. With a co-signed personal loan, your co-signer has to make payments if you fail to.
- Consider a secured personal loan. Using a car, savings account or other asset as collateral may get you a lower rate. The risk is losing your asset if you default on the loan.
- Assess your overall financial well-being. Personal loans work best as part of a balanced financial plan. Borrow money to consolidate debt if it means you’ll get out of debt more quickly. But don’t borrow if it only adds financial strain. If your current debt is overwhelming, investigate your debt-relief options.
Reasons to get a personal loan
One benefit of getting a personal loan is you can use the money for nearly any purpose. Ideally, getting one positively impacts your overall financial health, by helping you pay off debt faster, for example, or adding to the value of your home. Here are some top reasons consumers get personal loans:
- Debt consolidation: Roll your debts into one monthly payment, potentially reducing the interest you pay toward the debt and helping you pay it off faster.
- Home improvement: Need to add on a home office or install a swimming pool? Use a personal loan to cover the costs.
- Large expenses: You can use a personal loan to buy a boat, RV or other items with large price tags.
- Weddings: Using a personal loan to pay for your wedding can help you stick to a budget.
How to choose the best personal loans St Louis, MO
If you decide a personal loan is right for you, always compare rates from multiple lenders. The loan with the lowest APR is the least expensive — and therefore, usually the best choice.
Also consider the loan’s term and monthly payments. A longer term may mean lower monthly payments, but you’ll pay more in interest over the life of the loan. Assess how the payments fit into your monthly budget.
Some loans have consumer-friendly features that may be important to you. If you’re consolidating debt, a lender that sends your loan proceeds directly to your creditors saves you that step in the process. Some lenders offer flexible payment options that allow you to change a payment due date or defer a payment.
Best pesonal loans in St Louis
There are a few financial institutions in St. Louis, that gives personal loans, but the best one to use depends on your credit score and financial situation.
If you have good or excellent credit, you can get a low-interest personal loan from Marcus by Goldman Sachs. Marcus offers fixed-rate loans from $3,500 to $40,000, with terms of 36 or 60 months.
If you have bad credit, you can use a site like LendingTree to compare personal loan offers from multiple lenders at once. LendingTree will do a soft credit pull that won’t affect your credit score, and you can get pre-qualified for a loan in minutes.
SoFi is another good option for bad credit borrowers. SoFi offers loans from $5,000 to $100,000 with fixed or variable interest rates. You can also choose a term of 24 to 84 months. SoFi doesn’t have origination fees or prepayment penalties, and you can get your money as soon as the next business day.
Other types of online loans available in Missouri
There are a few different types of loans available in Missouri. Here is a brief overview of each:
- Student Loans: If you are attending college in Missouri, you may be eligible for student loans. There are both federal and private options available.
- Business Loans: If you own a business in Missouri, you may be able to get a business loan. There are various types of business loans available, depending on your needs.
- Mortgage Loans: If you are looking to buy a home in Missouri, you will likely need a mortgage loan. There are both fixed-rate and adjustable-rate mortgage loans available.
- Personal installment loans: These are loans that are typically repaid over a period of time, usually two years or more. Installment loan terms can vary, depending on the lenders. Online installment loans are available in Missouri.
- Auto Loans: If you need a loan to purchase a vehicle, you can get an auto loan from a lender in Missouri.
- Payday Alternative Loans: These are short-term loans offered by some credit unions that have lower interest rates and fees than traditional payday loans.
If you need financial assistance, there are many options available in Missouri. We can help you find the right loan for your needs. Give us a call today to learn more about your options.