Installment Loans in Lexington, Missouri

Understanding Installment Loans in Lexington, Missouri

When you find yourself in a financial bind, it’s essential to recognize all available options for borrowing money. One of those options is installment loans, which are legal and popular in the state of Missouri. An installment loan can help you bridge the gap between paychecks and cover unexpected expenses. This article will explore installment loans in Lexington, Missouri, and all that you need to know before applying for one.

What are Installment Loans?

An installment loan is a type of loan that you borrow in a lump sum from a lender at a fixed interest rate. The repayment period is then divided into equal monthly installments, which are spread over a predetermined period. Typically, the payment period ranges from three months to several years.

These loans can be used for various purposes such as medical expenses, car repairs, home improvements, and emergency expenses. The lender usually considers your credit history, income, and debt-to-income ratio while deciding what amount you qualify for and what interest rate you’ll be charged. These loans can be secured or unsecured.

Understanding the Application Process

The application process for installment loans in Lexington, Missouri, is relatively simple and quick. You can apply in-person at a store-front lender or apply online. Online lenders have simplified the process since you can apply from the comfort of your home. It typically takes around 24-48 hours for the lender to process your application and make a decision regarding your request, including how much you qualify for and the interest rate you’ll be charged.

Before applying for an installment loan, it’s essential to know that your credit history will affect how much you can borrow and what interest rate you’ll be charged. In case you have a bad credit history, you will most likely have to pay a higher interest rate. You should also be prepared to provide some essential information, including your employment and income details, as well as your Social Security Number and banking information.

Legal Regulations on Installment Loans in Lexington, Missouri

The laws regulating installment loans in Lexington, Missouri, are comprehensive, precise, and ensure that borrowers are protected from unscrupulous lenders. Installment loans are legal in the state, and the industry is governed by the Missouri Division of Finance. All lenders must adhere to the state’s lending laws, and businesses must have a state license to lend in Missouri.

One of the critical aspects of the law is the cap on the amount lenders can charge for interest. The state law mandates that lenders can charge a maximum annual percentage rate of 75%. However, in case you have bad credit or a high-risk profile, the lender can charge more. Generally, lenders operate under a “file and use” system, which means that they file their rates with the state and can use them at any given time.

Why Choose Installment Loans in Lexington, Missouri?

One of the main advantages of installment loans in Lexington, Missouri, is that they can help you cover unexpected expenses or bridge the gap between paychecks. They are relatively easy to access without the stringent borrowing requirements typical of conventional bank loans. They can also help you establish or improve your credit score since your payment history is reported to credit bureaus.

Interesting Facts and Statistics about Installment Loans in Lexington, Missouri

• The Missouri Division of Finance reported a total of over $2 billion in consumer installment loans in Missouri in 2019.
• According to a 2018 report from the Pew Charitable Trusts, Missouri was among 26 states that allow installment lending. These states possess clear regulatory frameworks that promote strong consumer protection practices, market competition, and transparency in fees and interest rates charged by lenders.
• The report also disclosed that approximately 16,000 Missourians obtained a payday loan in one year, and these borrowers paid, on average, more than $450 in fees alone on their loans.

Apply Now

If you’re considering taking out an installment loan in Lexington, Missouri, TheGuaranteedLoans can assist you in finding lenders who offer them. We are a connector service, not a direct lender, committed to linking you to our network of reputable lenders. Our application process is quick, easy, and secure, and you’ll quickly receive any loan offers for which you qualify. You’ll then be able to make an informed decision regarding the best loan option to suit your needs.

Remember, installment loans can be useful in times of financial need, but it’s essential to borrow only what you can afford to repay. Ensure that you choose a reputable lender with fair interest rates and fees, and read all the terms and conditions before signing for a loan. That way, you’ll be able to make financially sound decisions.