When you are in need of fast cash to with an unexpected emergency expense in the state of Missouri, it may be hard to know where to turn. One option that is very likely at your disposal is to borrow money through a car title loan.
The reason why a title loan in Missouri is a great option to consider is because they can help you get the cash you need to cover your financial expenses. With little to no credit check, easy application processes, and fast approval, you can get the cash you need in hand within 24 hours of the time you originally apply.
Title loans are different depending on what state you borrow in, but on the whole they are typically quite similar country-wide.
Basically, if you own a car in full and have a lien-free title on that car, you can use the value of that car to borrow hundreds or thousands of dollars with no credit check.
Car title loans are easy to get both online and in person. While online car title loans are considered to be the easier option to apply for, in-store title loans can often be approved and taken out faster because you can get the entire process taken care of in one visit.
Car title loans in Missouri can be worth up to $30,000, but it is rare for a loan to be worth quite that much.
More often, title loans are worth somewhere between $1,000 and $4,000 in the state of Missouri. The reason why title loans are quite a bit lower than the market value of your car is because borrowers are offered loans that are anywhere between 30 percent and 50 percent of their vehicle
The reason for that 30 to 50 percentage has to do with the fact that car title loans are secured loans.
Since your loan is tied to the value of your car, if you are unable to pay back your loan after your payment term (payment terms for car title loans typically last between two weeks and a month), your lender will have the option to repossess your car. Your lender will repossess your car if you don’t pay off your loan so that they can recoup their losses. That is why lenders offer loans that are worth 30 percent to 50 percent of your car’s actual value or market value.
If they have to repossess and sell you car, they aren’t going to want to spend their valuable time searching for a buyer who is willing to pay full price. They are going to want to sell your car as quickly as possible so that they can be made financially whole again.
Because car title loans are secured loans, they can be a fairly risky option if you do not feel you will be able to pay back your loan in time. Before you apply, you should evaluate your finances, your income, what you need the loan for, and how long it will take you to pay it off plus interest before you take out your loan.
If you find that you may not be able to pay off your loan by the end of your term, you may want to ask about longer repayment terms - which is an option - or consider avoiding taking out a title loan at this time.
If you find that you won’t be able to pay back your loan until you are already in the midst of borrowing your car title loan, make sure to contact your lender as soon as possible and ask them to roll over your loan term. Rolling over your loan term will give you a lot more time to pay off your loan, but be warned, it will also come with another interest fee. Another option to help you get out of your loan if you find that you will not be able to pay it off in time is to refinance your title loan.
Interest rates for car title loans are quite expensive. The national average rate for car title loans across the United States is believed to be approximately 25 percent. That means that if you take out a car title loan worth $1,000, you will owe at least $1,250 by the end of your first term. If you have to roll over that loan for a year, your loan’s annual percentage rate will be 300 percent. That means that you would owe $3,000 in interest fees alone if you originally took out a $1,000 loan. That’s quite a hefty price to pay for such a small loan.
If you are interested in taking out a car title loan, you will need the following to qualify.
On top of that, if you are applying in-store, you will likely be asked to have your car inspected in person. If you are applying online, your lender will ask you to provide either pictures or videos so that they can evaluate the value of your car.
After that, you'll be good to go!
Car title loans are famously known for being incredibly easy to get.
That's why they can be so helpful when you are facing a financial emergency. As long as you are confident in your ability to responsibly borrow and pay back your loan, a car title loan can be a fantastic way to get same-day cash to take care of the financial emergency that is keeping you up at night so that you can get some well-deserved peace of mind.