Applying for a title loan for the first time can feel easier when you know what to expect. A title loan uses a qualifying vehicle title as collateral, and the amount you may qualify for depends partly on your vehicle’s value.
Missouri Title Loans, Inc. helps qualified borrowers start the process online and complete the remaining steps in person with a representative. Before applying, it is important to understand the requirements, vehicle inspection, loan amount review, repayment terms, and risks.
This first-time title loan guide explains the basics so you can ask better questions before signing any agreement.
What Is a Title Loan?
A title loan is a secured loan that uses a lien-free vehicle title as collateral. To apply, you generally need to own your vehicle outright and have the title in your name.
Your vehicle is inspected to help determine its value. That value can affect the amount available if you qualify.
Borrowers can generally keep and drive their vehicles while repaying the loan. However, the vehicle title secures the loan, so it is important to understand the repayment terms before accepting the agreement.
5 Major Title Loan Factors To Know Before Borrowing
First-time title loan borrowers shouldn’t start the process without understanding it; it’s important to learn as much as possible about the loan before applying. This can help you decide if it fits your financial situation and make the title loan process go more smoothly.
Here are five major factors to understand about title loans in Missouri:
1. You Need To Fully Pay Off Your Vehicle First
Before you can apply for a title loan, you must ensure that you have full paid off your car, truck, or van. The process involves us placing a lien on your vehicle title, so you must have a lien-free vehicle title first.
That involves paying off any debts, judgments, or liens first. If you took out a car loan instead of paying it all up front, you must settle that debt before getting approved. You must also pay off any outstanding traffic tickets or legal liabilities from court decisions.
The lien-free vehicle title must also be in your name. If you have just paid off your vehicle, you will need to get the title transferred. To apply for a new, clean title in your name, you’ll need a lien release from the lender, your current title, and your ID. It may take your local DMV up to a few weeks to issue a new title.
2. You Must Be Over 18 Years Old
The person taking out a car title loan should be over 18 as most loan agreements are considered legal contracts. You must be a legal adult to enter into one of these agreements. This is not just something we require; Missouri law dictates that only people over 18 can borrow loans from banks or loan lenders.
This is to prevent someone just starting their financial journey from borrowing money before developing responsible money management habits.
Young people who have just turned 18 might find it hard to get approved for many types of loans because they may not yet have built their credit history. However, title loans are different. If you own your car outright and know that paying off the loan won’t be an issue, you could qualify even with no credit score.
3. Title Loans Have Simple Requirements
To get approved for a title loan as a first-time borrower, you will need to prove your identity, age, vehicle value, and full ownership of your car. This is made easy with Missouri Title Loans, Inc., as we only require three items for you to meet our qualifications.
The following are the title loan requirements:
- State-issued photo ID: This ID will prove your identity and age, as mentioned above. You can use your driver’s license, Missouri state ID, passport, or any other ID that displays your full name, age, and photo.
- Lien-free vehicle title: As mentioned previously, you must own your car outright to get approved. We verify this by using your lien-free vehicle title as collateral. The title must be in your name, and you can only use titles attached to cars, trucks, or vans.
- Your vehicle: We will determine your loan amount using your vehicle’s value. We assess this by inspecting your vehicle in person. Don’t worry, you will get to keep your car after the inspection.
4. Your Vehicle’s Value Determines Loan Amount
Borrowers can receive up to $15,000 with a Missouri title loan. However, not everyone will get approved for that amount. Your title loan value will depend on what your car is worth. This is determined during an in-person inspection.
Here are some of the factors that can influence your title loan’s value:
- Vehicle year
- Make and model
- Interior and exterior condition
- Vehicle maintenance history
- Modifications
5. You Can Get Title Loans With Bad Credit
As a title loan is secured by collateral, it is typically viewed as less of a risk by the lender. They have your vehicle title should you fail to repay the loan. With the collateral as security, proving your credit score is less important. That’s why a poor or non-existent credit score won’t prevent you from qualifying.
Furthermore, you won’t be asked to bring in any proof of income to the lender's office. You might get approved even if you’re unemployed at the moment. Just don’t forget to make sure that you will be able to fit the loan payments into your budget, or else you can risk losing your car.
How Does The Title Loan Process Work?
The best thing about taking out a title loan is the fact that you might be able to receive a financial boost in a short amount of time. One of the reasons for that is the speedy approval process. You will only need to complete a few steps, some of which you can do from home. You will need to visit us in person, but it will take less than 30 minutes to finalize the process.
Here is the approval process for title loans:
- Let the lender know that you’re interested by calling the company directly, arriving at one of the stores, or filling out an inquiry form. We suggest filling out the form with your name, zip code, email address, phone number, and vehicle details.
- A lender representative will soon give you a call to go through all the details, including requirements, how to get approved, and potential loan amounts. During the conversation, you can ask questions to clear up any confusion. You can also select a Missouri store location for your meeting.
- Arrive at the location with the required items and give the professional some time to verify your documents and inspect your vehicle. You might find out the amount you qualify for in just 30 minutes, by the way.
- If you get approved, you will have to take care of the final papers. Make sure that you have fully understood the terms and conditions before signing any documents.
- Find out how you can receive the money and get the extra cash you need as soon as the same day or the next business day.
Get Title Loans As A First-Time Borrower – Receive Up To $15,000 Today!
Missouri Title Loans, Inc. can help you get a title loan as a first-time borrower. Our friendly loan associates can explain the process clearly and walk you through every step. You can apply online today and get approved in person in less than 30 minutes. You can get approved for a title loan with bad credit and get to keep your car!
Ready to get fast emergency cash for your urgent costs? Fill out our online title loan form right now, and visit us in person to get same-day cash!
Frequently Asked Questions
What do I need for my first title loan?
You generally need a state-issued photo ID, a lien-free vehicle title in your name, and the vehicle for inspection.
Can I get a title loan with bad credit?
You may be able to start an inquiry with less-than-perfect credit. Approval depends on the completed application, vehicle evaluation, ability to repay, and other requirements.
How is my vehicle value reviewed?
Vehicle value may be reviewed based on year, make, model, mileage, condition, vehicle type, and current market value.
Can I keep driving my vehicle?
Borrowers can generally keep driving their vehicles while repaying the loan. The vehicle title still secures the loan.
Can I start the process online?
Yes. You can start with an online inquiry. A representative may contact you to explain the next steps and required items.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
