Why A Car Title Loan Is A Possible Payday Loan Alternative To Try

A lot of people are familiar with payday loans as a means of acquiring funds when you need them in a hurry, but not everyone is eligible for payday loans or wants to take them out. Quite a few things can get in the way of acquiring a payday loan, including not having a bank account – so let’s look at a payday loan alternative: a car title loan.

A car title loan may work well when you’re in need of funds for an emergency situation, especially if you have a vehicle that is worth a reasonable amount of money, that you can use as collateral for the loan. Lots of people can benefit from this kind of borrowing, so let’s learn more about it!

Why Is A Car Title Loan Considered A Payday Loan Alternative?

If you don’t want to borrow money against your future paycheck, a car title loan may be a good alternative for a number of reasons. Firstly, this kind of loan tends to be fairly flexible. In some cases, you may be able to get access to one via Missouri Title Loans, Inc. even if you don’t currently have a bank account.

This makes this kind of loan significantly more accessible to some people, as payday loans generally require you to have a checking account that you can use. If you don’t have a checking account, it may be very difficult to get a payday loan.

As long as you are over 18 years old and own a vehicle outright, you can apply for a car title loan. This is true even if your credit isn’t great, although there is of course no guarantee that you will have your application accepted. With this kind of loan, you get to keep your car, so you can still get yourself to work.


What Are The Requirements To Get A Car Title Loan?

It’s always a good idea to check the requirements directly with the company, because they may occasionally request additional documents, but in general, you will need to provide the following:

  • A title for your vehicle (registered in your name and with no other liens currently active on it)
  • Your vehicle itself (so that the company can determine how much money you can borrow; the vehicle will undergo an inspection to assess its worth)
  • Statue-issued identification (many people use their driver’s license as this is often the easiest way to meet the requirement, although it is not the only form of ID accepted)

Be aware that if you are not over 18 years old, you cannot take out a car title loan.

It’s also important to note that in Missouri, you may be able to complete the full application process online, although you can go into a store if you would prefer to do so. However, even if you do apply online, the company must inspect your car before they can offer you the loan.

In these cases, the company will send a representative to your house or to another agreed-upon meeting spot and will inspect the vehicle there. They can then complete the process and tell you how much money you can borrow.

Some people prefer to complete the process at one of the company’s locations instead for this reason. If you are going to take this approach, it’s important to take the documentation mentioned above, as well as the vehicle, so that you can get everything assessed and proceed with the application quickly.

Overall, the process is quick and easy, which makes this a great payday loan alternative.


Car Title Loan FAQs

Here are a few of the things people most commonly wonder about when it comes to taking out a car title loan.

Q: Does my car have to be inspected?

A: Your car does need to be inspected for a title loan, yes. The loan company needs to confirm what kind of car it is, what condition your car is in, what mileage it has done, how old it is, and a few other factors before they can determine how much you can borrow.

Q: How long does it take?

A: Some parts of the process usually only take about half an hour, although they can take longer. Time spent filling in the initial form and finding any relevant paperwork is not included in this. Overall, it’s relatively quick, but not immediate.

Q: How quickly will I get the money?

A: You will get the money either on the day of the application or the following business day.

Start The Process Today

You hopefully now understand why a car title loan is considered a viable payday loan alternative by many individuals. It provides a different source of funding that may be better suited to certain circumstances.

When you’re in an emergency situation, it’s important to consider all the different kinds of funding available to you. If a payday loan isn’t right for whatever reason, a car title loan might be. Don’t hesitate to reach out to us at Missouri Title Loans, Inc. and find out more today!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.