What Is The Difference Between An Auto Equity Loan And Car Title Loan?
People hear terms like auto equity loan and car title loan thrown around and wonder what their differences are. There are variations of these loan types, and each private lender may offer different types with unique variations.
These types of loans can finance an emergency when you don't have money. The type of loan you pick depends on what's available in your area, your lender, and your specific needs.
Thankfully, our guide can help you understand the differences between an auto equity loan and a car title loan. Keep reading to discover the various loan types you can pursue in Missouri today!
Discover The Loan Types Available In Missouri
What Is A Car Title Loan?
A car title loan is a loan you take out on the title of a vehicle you own outright where you are the sole owner of the car. It's a short-term financing option when you need cash fast for an unexpected expense. Your title must be lien-free and have no legal claims against it.
Your lien-free title serves to secure the loan as collateral. The title is returned when you pay off the loan. The loan can be renewed every 30 days, with you paying a minimal payment.
Defining An Auto Equity Loan
An auto equity loan functions like a car title loan, with the lender holding onto the title during repayment. With this loan, you borrow money on the equity you have in your car. That can be equity on the vehicle's total value if you own the car outright, but it can also be on the equity based on the value subtracting what you still owe on it.
Whether you can borrow a car you don't completely own depends on state rules. Currently, only the state of Arizona allows this. However, auto equity loan is often applied to title loans, where you borrow on the value of your car rather than a set amount the lender offers everyone.
You can borrow more money when it's attached to the value of your vehicle rather than an arbitrary amount set by the lender. Some people may need a more significant loan amount to pay for a major expense, and accessing the value of your vehicle is one way to pay for a high-dollar cost like a busted water main or a roof repair.
Getting A Loan In Missouri
Missouri offers a couple of ways to apply for various loan types as it is the only state that allows online auto equity loan and car title loan applications. Applying for these loan types online lets you meet the loan representative at a convenient location other than the store.
An online application makes seeking a car title loan much easier since you can do it from home or office. It doesn't take loans, and the form is simple to fill out and submit. One aspect of a car title loan is that lenders need to pull your credit history or report the loan to the three major credit bureaus.
That means your credit score remains unaffected, and it opens up finance options to many who would otherwise be denied because of bad credit, lack of time on the job, or some other reason. Some find it a short-term solution to funding something that can immediately be solved, like a doctor's bill or a home repair.
What Are The Requirements?
Missouri Title Loans, Inc. offers a car title loan of up to $15,000. Once you meet with the loan representative, the meeting can take as little as 30 minutes. That's partly because filling out the form online saves some time. Here's what you'll need to get started:
- A driver's license or state-issued ID
- A clean or lien-free title
- The car available for inspection
Online Application
At Missouri Title Loans, Inc., we strive to simplify the car title loan process. Here's how our quick process works:
- You can complete an online application for a title loan at Missouri Title Loans, Inc. by using the form on the website.
- After receiving your information, a loan representative will give you a call to talk to you about the rest of the process.
- You can schedule a meeting at a convenient location of your choice or visit the nearest Missouri Title Loans, Inc. store.
- You can bring your documents with you to the meeting. An inspection will still need to be done on the vehicle to determine the amount you can borrow.
- Once you sign off on your loan packet, you will get your money either the same day or the following business day.
The great news is that you keep your vehicle, and we only hold the title until the loan is repaid. One of the good things about working with us is that you don't need a checking account to apply for a title loan. Those with bad credit are also welcome to apply.
Apply Today!
Applying today means you'll find out sooner if this is a financial option to meet your unexpected needs. Talking with a Missouri Title Loans, Inc. loan representative will help you understand the difference between a cart title loan and an auto equity loan. Plus, it may be a convenient option for your situation. Find out how much you could borrow today to pay for your emergency!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.