What Is A Title Loan?
Even though you have probably heard of title loans before, you might not be completely sure what they are. What is a title loan? Simply put, title loans are some of the more popular short-term loan types.
To learn more about what a title loan is, keep reading. This article answers all of the most pertinent questions related to title loans.
What Is A Title Loan Exactly?
A title loan is a loan that uses your vehicle’s title as collateral. What this means is that when you get a title loan, the title will remain with the lender while you can continue driving your vehicle as long as you make your regular payments.
How title loans work is that the loan amount depends on the vehicle’s value. This value is determined during a quick inspection. If approved, a lien will be placed against the title for the time being.
While you are paying back the loan, you get to drive your vehicle as you normally would. After the loan is paid back, the lien will be removed, allowing the title to be fully yours once again. This is just the short answer to, “What is a title loan?” Below is more information about this loan type.
How Much Money Can I Get From Title Loans?
How much money you can be loaned from a title loan depends on multiple factors. Most importantly, every lender will have their own maximum title loan amount. Here at Missouri Title Loans, Inc., our title loan maximum is $15,000.
In addition to the lender, you must think about the value of your vehicle. You can only be loaned as much as your vehicle is worth. So, Missouri Title Loans, Inc. can lend out $15,000, but you might only get $10,000 if that’s what your vehicle is worth.
What Are The Basic Requirements For Title Loans?
To apply for a title loan from Missouri Title Loans, Inc., you need three things:
- Driver’s License or State Issued I.D.
- Lien-Free Title to Your Vehicle
- Your Vehicle for Inspection
The driver’s license or state-issued ID is a standard requirement for all loans. It is used to confirm your identity. The vehicle is a straightforward requirement as well. As described above, the vehicle has to be evaluated to determine its value. You will need the vehicle at the time of the appointment so it can be inspected.
The lien-free title is often the most confusing requirement for individuals considering a title loan. A lien-free title is one that has no debts against it. In other words, you own the vehicle and title outright. The title must also be in your name. So, the title will not count if it is a parent’s or family member’s name.
If the problem with your title is that it is not in your name, that is a quick fix. You can head over to your local DMV to get it transferred into your name. If there is a lien against your title, you will have to pay that off first before you can qualify for a title loan.
Can I Still Qualify For Title Loans Even If I Have Bad Credit?
Missouri Title Loans, Inc. welcomes all credit types to apply for title loans. You can qualify for title loans even if you have bad credit. Since the title is used as collateral, your credit score isn’t what determines whether or not you qualify.
How To Apply
If a title loan sounds like an option for you, you will need to apply. Here is the application process at Missouri Title Loans, Inc.:
- Fill out our online request form.
- Wait for a loan representative to give you a call from the closest location.
- During the phone call, the representative will walk you through the rest of the process and answer any remaining questions you may have.
- Set up an appointment to have your vehicle evaluated. You can come to us, or we can come to you.
- At the time of the inspection, have all of your required items ready.
- A loan representative will assess your documents and determine how much you qualify for by evaluating your vehicle.
- If approved, you can get money the same day or the next business day because the in-person process can take as little as 30 minutes to complete.
Get Your Title Loan Today!
We hope that this article has helped to answer, “What is a title loan?” To recap, a title loan is a short-term loan that uses your vehicle as collateral. If you need a good chunk of money and have the three requirements above, a vehicle title loan may be an option for you. If you are considering applying for a title loan, get started by filling out our online form today. We will call you back shortly.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.