Title Loans in Missouri: How to Apply in 2022
No more paid leaves left to physically go to a lending company but in need of cash funding?
You may stop overthinking your unexpected expenses and looking for emergency money through car title loans.
A title loan will let you receive instant cash funding within a business day in the comfort of your home.
Read this article for additional information about title loans in Missouri.
What Is An Auto Title Loan?
Vehicle or auto title loans are short-term secured personal loans, wherein borrowers use their car title as collateral for quick money with high-interest rates.
However, the catch is that your vehicle's title must be clear, meaning it must be fully paid and owned.
Sounds promising? Not quite, because if the borrower fails to repay the loan, the lender takes ownership of the property to make up for the principal loan amount.
These short-term secured personal loans are also considered part of subprime lending, as they are often offered at a rate above prime to clients who do not qualify for prime rate loans, including bank and traditional loans.
You might wonder what you would use for transportation if you surrendered your car title. The answer is.. your car.
You'll only surrender your car title, but you won't need to surrender the vehicle itself.
Wanna know more about title loans? Just keep reading.
When Should I Get a Title Loan?
A title loan, a personal and secured loan, is known for its predatory and expensive nature. In this regard, we recommend a borrower only get one as needed.
If you think you still have other options left, then you might as well consider those options at hand.
But NGL! Title lenders have the easiest and most convenient application process and fast approval, which most traditional loans can't offer.
Most consumers still consider obtaining one because of this sole reason.
What You Should Know Before Getting Into New Loans in Missouri
This section will specify everything you should know before getting a vehicle or auto title loan online or onsite.
1) Never Mistake Car Title Loans As Car Loans
Car loans are the ones that will require you to surrender your car in exchange for funds but with high-interest rates.
Hence, auto title loans will never require you to surrender your car during your loan period; they will only ask for your car title.
Here are similar names that car title loans in Missouri may go by:
- Car Equity Loans
- Auto Equity Loans
- Auto Title loans
- Title Loans
- Vehicle Title Loans
- Bad Credit Title Loans
- Pink Slip Loans
- Same Day Loans
- Secured Title Loans
2) Car May Lead to Repossession
If you are not a good payer, the greatest risk with car title loans is the possibility of fully losing your car and transferring its ownership.
The plot twist is your lender will purposely put up competitive rates to get your asset.
3) Credit Checks Are Not That Strict
The good thing about credit loans is that your previous credit scores won't matter that much.
However, clients with high credit scores have higher chances when subject to approval.
4) Check The Hidden Fees
Before signing the contract, double-check and notice the included fees if they are reasonable, such as the processing fee, added refinance, penalties, etc.
5) Check If Your Vehicle is Qualified
Before going through all the hassle of applying, verify if your car's value makes it to your lender's cut-off. The value usually depends on the model, make, year, mileage, and overall condition.
Note: Some title lenders may prefer vehicles released in 2000 and above with lower mileage.
6) Auto Title Loans are Short-Term Loans
Since cash funding is released immediately, you should also expect to return the funds immediately. Not only that, these secured personal loans have extremely high-interest rates. Therefore, do not get a loan you know your income cannot pay off.
Commonly, loans should be paid back within 30 days and 180 days.
How to Apply for Auto Title Loans in Missouri
The application process for a secured personal title loan may vary per lender. However, most title lenders follow the same process.
Step 1: Prepare Before You Borrow Onsite or Online
Think about your plan before you borrow. Start with the following:
- Determine if you'll go with online loans or traditional title loans.
- Determine how much cash you'll need.
- Determine what vehicle you'll use as collateral — one with a clear vehicle title with no outstanding balance.
- Determine your repayment plans, fees, and terms — maximum loan amount, maximum interest rate, loan period, maturity date, and installment terms.
Step 2: Choose a Lender in Missouri
You may come across trustworthy title lenders in Missouri that will offer you a good deal of loans.
The real question is, how do you choose between the top lenders in Missouri?
Check for the following important details and features from your lender:
- Do they offer accessible and convenient services (such as onsite and online applications)?
- Where is the site of the loaning agency or your personal lender located? How many miles would it take for you to reach there?
- What are their repossession terms and policies? Are they lenient? Or are they strict?
- What are the rates for interest and maturity date? Are there any other fees and hidden charges?
- Does the company operate under the rules and regulations the government agency of Missouri set forth?
- Are their payment terms, methods, and conditions subject to change from time to time?
- Do they have approachable and friendly customer service?
- Ask and verify how much cash you can get from them.
Step 3: Prepare and Submit the Required Documents On-Site or Online
If you're fully decided on getting a vehicle title loan and are at least 18 years of age, you must prepare the following basic documents:
- Valid Identification Card (Government-issued)
- Proof of Citizenship
- Proof of Residence in Missouri (recent utility bills, credit card statements, etc.)
- Proof of Income/Employees Pay Slips (bank statements, paychecks, etc.)
- Existing Bank Account
- Proof of Vehicle Insurance
- Vehicle photos, odometer, and Vehicle Identification Number
- Contact Number
More so, your vehicle's title must meet the following conditions:
- Clean vehicle title
- An owned vehicle with no outstanding balance
- Vehicle ownership must be under your name
- Not under any existing title loan in Missouri
Step 4: Complete the Online Application Form
While title loans are also available via walk-in transactions, applying online is probably more convenient and easier for you.
Apply online through a website where your lender asks you to provide basic information like your name, address, contact details, car's model, and release date.
Aside from this basic information, the lender also checks your employment status. For unemployed applicants, you can show that you are still able to pay back your loan proceeds through the following alternatives:
- Retirement Income
- Pension Income
- An Annuity Payment
- Small Business Owners
- Settlement Income
- Worker's Compensation
- Landlord and Rental Income
If you want to request assistance or have further queries, their customer service agent will surely attend to you through their online platforms.
Step 5: Review the Terms and Conditions Before You Sign
Before you seal the deal, you should always know what you're signing up for to avoid unfortunate events such as losing your vehicle.
Recheck the following important details:
- The loan proceeds must be at least 25% of your vehicle's equity.
- Your repayment terms and conditions must be fixed, including hidden fees and penalties.
Step 6: Receive Your Cash Funding
After going through all the required paperwork, you're now subjected to the final approval process, which can take up to 3 business days or less than a day.
Once approved, on the same day, your loan provider will now release your money via the following options:
- Direct deposit to your bank account
- In-person pick-up
- Wire transfer
- Check in the mail
The Loan Amount (Borrowing and Repaying)
Just a recap: In a nutshell, your loan amount and extra charges depend on the following factors:
- Repayment terms (monthly installments or one lump sum)
- Your desired loan amount (minimum loan amount; maximum loan amount)
- Your income
- The overall condition of your vehicle and its vehicle value
Note: The average borrowed money a lender can give ranges from 25% to 50% of the vehicle's equity.
Frequently Asked Questions
Your financial emergency might still need some more clarification. Here's what you should know about getting a car title loan in Missouri.
1) Are Title Loans Legal in Missouri?
Title loans in Missouri are legal and governed under Missouri Revised Statute 367.500. The statute and notice say that lending companies must determine and check the borrower's ability to make payments before releasing the loan proceeds.
The statute does not require the lender to ask for proof of income from the borrower.
Although Missouri title loans are legally bound, it has declined to put an interest rate cap. Therefore, a 300 percent annual percentage rate (APR) would still be fine, translating to 25 percent monthly.
However, title lenders in Missouri are only allowed to give an extension or transfer of a loan twice, provided that the borrower pays all the dues. If not, the title lender can sell property, cry default, or reduce the principal amount by 10%.
2) Can I Still Apply Even If I Have A Bad Prior Credit Score?
A title loan doesn't need a perfect credit history.
Some do not even conduct a credit check before being subject to approval.
However, some might make it more difficult for consumers or borrowers with a low credit score. Frequently, they are given the worst deals with the highest interest out there.
3) Can I Apply for Missouri A Title Loan Even if I'm Still a Student?
Yes, you can still apply for auto title loans even if you're still a student, provided that you qualify for the following qualifications:
- Must be at least 18 years of age
- A resident of Missouri
- Has the ability to give payment on time
- Has a vehicle title with insurance
- Has a contact number
4) How Much Cash Will I Repay?
By nature, auto title loans are very expensive compared to other loans because of their lenient application requirements and process.
Usually, these loans have an average monthly fee of 25%. For example, if you borrow $2,000, and you're expected to repay in 30 days, you'll have to pay a finance charge of $2,500, which does not include other loan-related fees, like the processing fee.
Pro-tip: Don't borrow more than what you can afford.
5) What Is the Difference Between Title Loans and Payday Loans?
While payday and title loans are typically used for emergencies, they still have some visible differences.
A title loan has a much lower interest rate than a payday loan and will not usually require a credit check.
Payday loans usually require a credit check but do not require collateral.
6) Are There Any Other Alternatives To A Car Title Loan?
Title loans can be the easiest way to get fast cash without doing a lot of talking — just comply and submit to get a notice of acceptance.
If you think you're not ready with the possibility of losing your asset, consider the following options:
- Using a credit card
- Payday loans
- Pawnshop loans
- Personal loans
- Borrowing from family, friends, and acquaintances
7) Can I Get a Loan With Motor Vehicles?
Yes, a title loan for a motor vehicle is available in Missouri.
The process is also similar to how a typical title loan works. Since motor vehicles are also kinds of vehicles, we might as well accept these cars that also have value.
8) What Will Happen To My Vehicle?
Your vehicle will stay the same as usual. However, other title lenders would install a GPS device or duplicate your keys if they need to sell your property, given that payments didn't push through.
By default, title loans are easy to access for obtaining enough money suited for your emerging and urgent needs.
While these are easy and convenient, we still recommend paying for a lower interest rate loan if you can wait.
Always remember the golden rule, ask: "how much cash can I get?" From there, determine if it is worth applying for.
We hope that this article guided you through Missouri personal and secured title loans.