How Do Title Loans Work In Missouri?

There comes a time in many lives when a loan is needed to get through a financial emergency. But of course, there will always be the uncertainty and nervousness that comes along with doing something new for the first time. So, if you've been asking, "How do title loans work in MO?", we're going to tell you all about it right here.

How Do Missouri Title Loans Work?

What Is A Title Loan?

We should probably start with what a title loan is, just to dispel any possible confusion. You hopefully know that ownership of a car comes with a title, a certificate that officially designates someone as the owner of a vehicle. If you own a car, you should have a title for that exact car with your name on it somewhere.

A title loan is a secured loan, meaning that a borrower puts up collateral to get money from a lender. As you may have surmised already, the collateral in the case of a title loan is your car title: in other words, ownership of your vehicle.

That can sound a little daunting if you don't know what it really entails, so let's talk about this aspect of title loans in Missouri.

Do You Have To Turn In Your Car With A Title Loan?

Putting up your car as collateral sounds pretty scary, but it doesn't mean you are losing your vehicle. You aren't trading your car for money from a lender. Collateral is security for the lender. After all, they are generally handing you a large sum of money, and technically speaking, there's no guarantee that you are going to pay it back.

To ensure they don't just lose money, lenders have borrowers put up collateral, which the lender takes if you don't pay them back per the agreement you made with them. What this means is that, yes, you can lose your car with a title loan. However, that only happens if you default on the loan.

If you pay the loan back as agreed, you keep your car and nothing bad happens. You keep your car for the entire duration of the loan and can keep using it while paying the loan off. This is true not just in title loans in Missouri, but effectively everywhere in the United States.

How Much Can I Get From Title Loans In Missouri?

Because your car is being used as collateral, your car is also what determines how much money you can get from title loans in Missouri. It mostly depends on the age and condition of your car. At Missouri Title Loans, Inc. it can be anywhere up to $15,000.

Think about how the value of a car is determined when you are buying or selling it. Obviously, a newer car is more expensive than an older car, not including vintage cars. Likewise, a car that is in better condition is more expensive as well. Anything that detracts from the value of a car affects how much you can get from a title loan.

That includes the paint job, the interior upholstery, the engine, and any other components of value. If you offer up a newer car in better condition, the amount of money you can get in a title loan is increased. An older car in poor condition won't be worth as much.

Do You Need Good Credit For A Title Loan?

Because you put up collateral with a title loan, your credit does not have much influence on whether or not you are approved. After all, collateral guarantees that a lender comes out on top whether or not you pay them back, so they don't need to rely on your credit score as an indicator of your reliability as a borrower.

In other worse, you can apply and qualify for title loans even if you have bad credit, so don't let that stop you.

Getting A Title Loan With Missouri Title Loans, Inc.

Now hopefully you understand how title loans work. If you've decided that a title loan is right for you, Missouri Title Loans, Inc. has one of the quickest and easiest processes out there. All you need is a state-issued ID, a lien-free title to your vehicle, and your vehicle for inspection.

Fill out our online inquiry form here on our website, and a representative will contact you via phone as soon as they can to organize a time to meet with you. Bring the aforementioned items to that meeting, and the representative will verify your documentation and inspect your vehicle to determine if you qualify for the loan.

Get Started Today

If you do, you'll just have to sign a few documents, and you'll be able to get your money either on the day of approval or the following business day. As you can see, the process is swift and straightforward, so if you need a title loan in Missouri, don't hesitate to give us a call!

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