Title Loans in Mississippi: Your All-In-One Guide
If you need cash ASAP and own a car, chances are you're looking to get a title loan or auto title pawns. There are a lot of options for title loans in Mississippi.
It might get confusing with all these options, required documents, and other eligibility requirements. Let's dive into our all-in-one guide about Mississippi title loans.
Why You Should You Get a Car Title Loan
Getting a car title loan when you need emergency money is an effective option. Title loans have a lot of benefits and advantages over other types of loans.
Here are a few reasons why you should get a vehicle title loan.
Auto Title Loans Give You Money When You Need It the Most
Auto title loans, vehicle title loans, or any other term variation are the same. You, the vehicle owner, will give the rights to your car as collateral to a lender.
In return, the lender will then loan you money in cash. Title loans will come in handy if you have heavy expenses like household purposes or other personal costs.
Title loans are intended primarily for people who have a car and need cash quickly.
You would then pay the loan back over a pre-agreed term or period.
Bad Credit? You'll Still Get a Title Loan
There's no credit check necessary to get an auto title loan in Mississippi. Unlike a bank loan, you can get cash without needing good credit.
People with varying financial backgrounds can still apply for an auto title loan to get instant cash. You don't need perfect credit to get the best title loan.
Remember that good credit will often bag you lower interest rates and a better deal overall.
IMPORTANT WARNING: Just because it isn't required doesn't mean there won't be any credit check. Lenders can still opt for a credit check. It's really up to each lender.
Interest Rates Are Lower Compared to Other Types of Loans
Auto title loan competitive rates are usually lower than a traditional loan or personal loan interest rate. This will make it easier on your wallet each month.
You won't have any issues if you make your monthly payments.
CAUTION: If you don't make your monthly payments by the due date, you may incur additional fees and payment penalties. Do this enough times, and the lender may take your car away!
Loan Terms Can Be Easily Adjusted
Starting from a minimum of a 30-day loan term, the lender can extend it at their discretion, depending on your negotiation.
This is great because some people need a short-term loan for only a month, while others may need longer-term emergency funding for a year.
Most lenders will adjust and cater to your needs and make it easier for you to pay the loan proceeds back at a schedule most flexible to you.
REMEMBER: Each lender has specific penalties if you don't follow the agreed-upon terms. Ensure you look at how much cash you have and need and when.
The Application Process Is Flexible and Convenient
The recent COVID-19 pandemic has pushed a lot of processes online, and applying for title loans in Mississippi is one of them.
Whether you prefer to go through the approval process in-store on a business day or online through your cell phone, the choice is yours.
TAKE NOTE: Of course, the inspection of your car will have to be done in person regardless of which one you choose, but it's very convenient to have that initial option of applying online.
Successful Loans Can Increase Your Credit Score
When you complete the loan term and have paid it off, you will get the money you need in cash and increase your credit score.
This will help you if you currently have a bad credit score and want to have better interest rates next time you apply for title loans.
PRO TIP: Building a perfect credit score will help your future cash needs, like if you need money to open a business owned by yourself.
Things to Be Cautious of When Applying for Title Loans
Even if title loans can have a lot of benefits, there are many things to be careful with when getting into them. Review these things carefully!
Title Loans Can Lead to a Cycle of Debt
On average, unfortunately, many people don't have enough money to pay off their title loan debt during the agreed term.
When this happens, the title loan provider is flexible and usually agrees to extend the term but with more fees and penalties.
These fees and penalties can stack up so much that the person will just be forced to keep extending the loan or refinance it without the ability to pay it off.
IMPORTANT NOTE: Paying off the debt even if you're in a cycle can be challenging but not impossible. Refinancing can help if you get a better interest rate without penalties.
The Risk of Your Car Being Repossessed
No matter how good your credit score is, you will still have to put your car up for collateral.
This means there will always be a risk that the loaners will take your car away from you if you can't pay your title loans off.
That risk becomes more tangible when you find out that some Mississippi title loan firms install GPS trackers in your car during the loan duration.
FAST FACT: According to the Consumer Finance Protection Bureau, 1 in every 5 title loans end in the car being repossessed by the title loans firm. Repossession happens more than you would think.
Requirements to Apply for a Mississippi Title Loan
Title loans in Mississippi are legal. They have prerequisite requirements and documents you must prepare before you can avail of them.
Fast Facts: Maximums and Minimums
There are a lot of maximums and minimums to consider before starting the application process:
- The maximum loan amount is up to $2500
- The minimum loan amount is $100
- The minimum loan term is 30 days.
- The maximum loan term is 24 months.
- The maximum annual percentage rate (APR) is 300%.
- The minimum age to apply is 18 years
Getting a title loan in Mississippi isn't different than in different states regarding these requirements.
TAKE NOTE: These are minimums and maximums. The actual interest rates, loan term length, and loan amount depend on your negotiation with your direct lender.
What Documents Do You Need?
Before you go out and apply for a title loan in Mississippi, prepare all the documents listed below so that your approval process goes smoothly and you can get cash ASAP.
You must prepare the following requirements:
- A clear vehicle title with only your name (NOTE: This will serve as collateral for your vehicle title loan.)
- Your vehicle - for vehicle evaluation (NOTE: You can still use your vehicle while paying off the debt)
- Pictures of the car
- A document proving both employment and income - Pay stubs are suitable
- Government-issued ID
- Proof of being a US resident in Mississippi
- Bank account details (NOTE: Not always required; it depends on the lender)
- Proof of vehicle registration and insurance
- Express written consent if you are applying online
CONSIDER: You may also want to bring extra photocopies to the application, like your Mississippi driver's license, telephone number, cell number, and bank statements.
How to Apply for Car Title Loans in Mississippi in 4 Easy Steps
Mississippi's process for title loans is specific to the state, so follow this next section carefully if you want to get a title loan approval.
Make sure to prepare the necessary documents listed in the last section.
Here is the step-by-step guide to the application process:
Step 1: Find a Reputable Mississippi Title Loan Company
The first step in applying for a Mississippi title loan is choosing the right car title loan company.
There are a lot of companies to choose from in Jackson and Gulfport.
The critical thing to consider when picking a firm to apply for a title loan is that they have good reviews and a history of working well with applicants from Mississippi.
THINK AHEAD: If a title loan firm looks promising but doesn't offer an online application that you would prefer, there are so many other options out there. Just keep looking.
Step 2: Choose How You Want to Do the Application Process
Title loans in Mississippi can be applied either online or in person.
Both options have their pros and cons. Online applications are more convenient but take longer to get approved and the money in your bank account.
In-person applications are less convenient as you must travel to the store and complete paperwork by hand, but approval time is usually much shorter.
It depends on what your priority is: convenience or time.
TAKE NOTE: Both processes still mostly need to see your vehicle in person to determine its value for the loan amount and verify its condition. This is regardless of your choice of application type.
Step 3: Fill Up and Submit the Application Form
The application form for a title loan in Mississippi will likely include names, addresses, and contact information.
You'll also include your car title, which will be held as collateral, and the other documents mentioned earlier.
Once you've finished filling up the form and prepared the required documents, submit your application online or to the direct lender from a Mississippi firm in person.
IMPORTANT REMINDER: Credit checks are not required, but the lender may still opt to do one. This is why you must have the documents we listed earlier.
Step 4: Wait for the Approval Process
Fortunately, the process is typically quicker than other types of loans.
Depending on the lender and if you did the process online or in person, it could take less than a day to a few days to get the money.
Check your bank account for the transferred money when the title loan is approved. You may receive a text message from your bank or the lenders notifying you of the transfer.
REMEMBER: Once you get the loan, make sure to pay the loan amount on the due date of each payment term. Try not to default on the loan because you may lose your vehicle.
Frequently Asked Questions
After finding out how to apply for a Mississippi title loan, you may have some further questions. These may be listed and answered below.
How Much Money Can I Expect to Get With a Mississippi Title Loan?
The loans usually range from $100 to $2500. Some factors can influence how much money you get, including:
- Condition of the car
- Mileage of the car
- How capable are you of repaying the Mississippi title loan
DON'T WORRY: Even if you get a smaller loan than you wished for, you can still try and negotiate with the Mississippi loan provider. You can also look for another one to give you a higher quote.
What if I Already Have a Car Title Loan With Another Organization?
The likelihood of getting a title loan from another firm when you already have one with a previous firm is low but not impossible.
However, it's easier than refinancing bank loans or personal loans.
You can refinance your old title loan by replacing it with a new one. This means the new firm will pay the old firm what you owe them.
Your title will then transfer to the new loan firm as you now owe them.
This can be beneficial if you find a new firm willing to do vehicle title loans that offer better interest rates and loan terms than the current one.
CAUTION: Try not to refinance with a title loan firm with an overall worse deal regarding interest rates. You'd better stick with the current one and ask for an extension.
Can I Have Two Separate Title Loans for Two Different Cars?
While in Mississippi, you can technically get two title loans for two cars. However, we don't recommend it.
Having more than one loan you have to repay monthly will put double the strain on your finances and isn't worth it.
PRO TIP: Maybe look for alternative loans or ways to get cash if you need more than what one title loan in Mississippi can provide. Diversifying is better than putting your eggs in one basket.
Why Do I Need to Prepare These Necessary Documents?
Title loan firms in Mississippi need these documents to comply with the legal requirements of the Mississippi Department of Banking and Consumer Finance.
The Mississippi firms also need these documents to determine whether or not they should give you a loan, how much they should loan, and other financial considerations.
CONSIDER THIS: You wouldn't want to drive to a Mississippi title loan provider and find out you lacked crucial documents. Go back to the list of the documents you need and make sure you prepare all of them.
Can I Get Title Loans in Mississippi Online Without Inspection?
It heavily depends on the Mississippi title loan firm as most require an in-person inspection.
Some Mississippi title loan firms allow only pictures and videos of the vehicle to be sent if the application is made online.
REMEMBER: It's always better to be safe than sorry. No inspection is more of an exception in Mississippi than the rule.
Does My Name Need to Be on the Title of All of My Car Title Loans?
Yes, and if the car has more than one owner listed, then yours must be on it. Mississippi lenders need to be sure that you are the car's owner, either in part or whole.
DOUBLE CHECK: If your car was a hand-me-down or a gift, it might not be registered in your name. Check the car's pink slip for the details.
Can I Get Rejected for a Title Loan in Mississippi?
Firms that offer Mississippi title loans will accept your application if you have all documents and are eligible.
The chance you will be rejected is low if you follow this guide. Remember that bad credit is mostly not considered in Mississippi title loans.
REVIEW: Check all the eligibility requirements and requirements for title loans in Mississippi before applying. This will increase your chances of getting title loans approved.
Will They Modify My Car in Any Way?
Firms that offer Mississippi title loans may install a GPS tracking device in your car to find the car's location if you default on your loan.
It also has a backup battery so that it can still be found if your car's battery runs out.
DON'T WORRY: The title loan firm will remove the GPS tracking device and the backup battery once the term is over and all payments have been made.
Can I Pay Off Car Title Loans Early?
You can pay off Mississippi car title loans early because there are no prepayment penalties.
Depending on the Mississippi title loan company, you may get discounts on monthly payments if you consistently pay ahead of time.
This will save you a lot of money and allow you to worry less about payments.
PRO TIP: Check the title loan firm's policy on early payments so that you can save a lot of money if you can pay early. Direct deposit also helps create goodwill with lenders.
When Will I Get My Car Title Back?
A title loan in Mississippi has a set term. Once the title loan has been fully paid off, the title will be returned to the owner when the period ends.
Depending on the title loans company, you may get your car on the next business day.
What Happens if I Can't Make the Monthly Payments?
First, the Mississippi lenders will try to contact you through text message.
If you don't answer, they may call you using an automatic dialer with pre-recorded messages asking about the status of payments.
If you still don't respond after multiple payment periods have passed, they may locate and repossess your car as payment.
You will be able to get your car back only after you pay the Mississippi lenders the total amount of the loan. You also need to pay any fees you may incur.
REMEMBER: Title loans in Mississippi are flexible, but everything has a limit. Don't dive into title loans if you know you can't pay the monthly amount.
Final Thoughts and Reminders
When it comes to getting Mississippi title loans, there are a lot of things to think about and consider.
However, it is an excellent option if you own a car and badly need money in cash right now.
The best part of title loans in Mississippi is that bad credit doesn't instantly mean you get denied a title loan. It's more dependent on the value of your car.
Lenders are also very considerate of your specific financial situation. The important thing is that you can show that you can pay the monthly dues.
So if you're strapped for money in cash and read our guide, go and get yourself a Mississippi title loan today!