If you have a paid off vehicle in Missouri, you may be eligible for a title loan. A title loan is a type of short-term secured loan that uses the car’s title as collateral for the full amount you borrow. Your vehicle’s pink slip is held by the lender and is used as security for the amount they lend. These types of loans are useful for people who find it difficult to be approved for bank loans and personal loans from credit unions.
Even if you have bad credit, you may be able to get a title loan of up to $5,000. The typical term for a title loan is around 9 months, but it may vary depending on the lender and other underwriting requirements in Missouri.
To quickly qualify for a title loan in Missouri, you must meet the following general requirements that are standard with most secured lenders:
– The vehicle must be titled in your name with sufficient equity and it needs to be in good condition
– You must be 18 years or older
– You must have a valid driver’s license
– You must have proof of residency in MO
You will likely need to provide the following documents:
– Proof of car insurance
– Proof of income
In addition, the lender may have other requirements that you’ll need to meet to get approved for auto title loans online. Be sure to check with your title loan company on what they actually need before you get too far along in the process. Some nationwide lenders will need much more information than what you would see from the smaller neighborhood lenders in Missouri.
Many Missouri title loan companies will approve you for a loan, regardless of someone’s credit history. These bad credit approvals include traditional secured vehicle loans and also title loans for older cars. Keep in mind that the interest rates and fees will be much higher if you have bad credit. With that, you can count on not having a traditional credit check and a poor credit history won’t be a major underwriting requirement. Finance companies know that those who look for secured loans were likely turned down for other low interest bank loans and installment loans, so you have some leeway when it comes to past credit issues.
If you can’t repay the title loan on time, the lender may take your car as collateral. This means that you could lose access to your vehicle if you don’t make the required payments. Now, there are many restrictions on what lenders in Missouri can do if you fall behind on payments or face a vehicle repossession. For instance, you have a certain amount of time to get your car back and you’re entitled to the extra money if your car sells for more than what you owe at auction. Also, the State of Missouri mandates that an account has to be at least 10 days past due before any finance company can proceed with repossession. Kansas City and St Louis also have specific city statutes that restrict what a lender or 3rd party bill collector can do when it comes to taking your vehicle.
Be sure to read over the terms and conditions of your title loan agreement before signing anything and stay on top of the current title loan repossession laws and lender regulations in MO. Be sure to budget enough money to cover the monthly payments so you don’t fall behind and risk losing your car.
As always, the amount of money available is based on the value of your vehicle. But borrowers with high value vehicles can borrow up to $5,000 with a title loan in Missouri.
If you want to take out the largest title loan that’s available, then you will need to find a lender that has no limits on how much they will lend. In this case, consider smaller title loan companies in most metro areas. Kansas City has dozens of lenders with retail offices and you can always compare multiple quotes and go with the best offer.
Keep in mind that if your car is worth less than $1,000, you won’t be able to get the full $5K from Missouri title loans. But if your vehicle is worth significantly more money, you can still try and negotiate for extra cash instead of waiting until the last minute before defaulting on the loan. Finally, it’s important to remember that these are short-term loans and are not very ideal for anyone caught in crisis mode with an unexpected financial emergency.
If you want to work with a lender that has physical offices in Missouri then you’ll need to go with a local title loan company. Springfield has at least 30 local lending locations and there are nearly as many in Columbia that will let you meet with them in person. These lenders often have more relaxed requirements and are much more personable when it comes to working out an agreement.
On the other hand, online title lenders offer competitive rates and may be more flexible if you can’t meet all of the requirements at a brick-and-mortar office. It’s also worth noting that some online lenders in Missouri have no minimum credit score, which could work in your favor if your credit is less than perfect.
No matter where you decide to apply, always compare at least 3 quotes before agreeing to anything. That way you look at different rates and terms and go with the best loan terms!