Title Loans in Franklin, Missouri

Everything You Need to Know About Title Loans in Franklin, Missouri

If you are strapped for cash and you live in Franklin, Missouri, you may be wondering what options are available to you. One popular solution in the state is a title loan. Title loans are a type of secured loan that use a borrower’s vehicle as collateral. In this article, we’ll cover the basics of title loans in Franklin, Missouri, including what they are, how they work, and what the benefits and risks are.

How Do Title Loans in Franklin, Missouri Work?

In order to secure a title loan in Franklin, Missouri, a borrower must own a vehicle with a clear title. This means that the vehicle has no outstanding liens or loans against it. The borrower will also need to provide a valid government-issued ID. Once the borrower provides the necessary documentation, they can bring their vehicle to a local lender, also known as a title pawn business, for an appraisal. The lender will assess the value of the vehicle and offer the borrower a loan based on that value. Typically, the loan will be for a percentage of the vehicle’s value, usually anywhere from 25% to 50%.

Once the borrower agrees to the terms of the loan, they will sign a contract and the lender will take possession of the vehicle’s title. The borrower will still be able to use their vehicle for the duration of the loan but will need to make payments to the lender, typically monthly, until the loan is paid off. The borrower will also be charged interest on the loan, which is typically higher than traditional loans. If the borrower is unable to make their payments, the lender may repossess the vehicle and sell it to recoup their losses.

What Are the Benefits of Title Loans in Franklin, Missouri?

The main benefit of a title loan in Franklin, Missouri is that they can provide an immediate source of cash in an emergency. Unlike traditional loans which can take days or even weeks to process, title loans can be approved and processed in as little as one business day. Additionally, title loans do not require a credit check, which can be a boon for borrowers with poor credit or no credit history.

Another benefit of title loans is that they can be more accessible than other types of loans. Because they are secured by the borrower’s vehicle, lenders are often willing to offer loans to borrowers who may not qualify for other types of loans based on their credit history or income.

What Are the Risks of Title Loans in Franklin, Missouri?

Despite their benefits, title loans can also be risky, especially for borrowers who are unable to make their payments. The interest rates on title loans are typically much higher than other types of loans, which means that borrowers can quickly fall into a cycle of debt if they are unable to make their payments. Additionally, because the loans are secured by the borrower’s vehicle, borrowers run the risk of losing their vehicle if they are unable to make their payments.

It’s important for borrowers to carefully consider their ability to make repayments before taking out a title loan. Lenders in Missouri are required to provide borrowers with a written agreement outlining the terms of the loan, including the interest rate, fees, and repayment schedule. It’s important for borrowers to fully understand the terms of the loan before signing the agreement.

Interesting Facts and Statistics about Title Loans in Franklin, Missouri

• Missouri has one of the highest rates of car title loan borrowers in the United States. According to the Pew Charitable Trusts, nearly a third of Missouri’s residents have limited access to credit and are more likely to take out high-interest title loans than residents of other states.
• Missouri law does not limit the interest rates that title loan lenders can charge. As a result, Missouri title loan lenders often charge higher interest rates than title loan lenders in other states.
• In 2019, the average title loan in Missouri was $1,153. The average interest rate on a Missouri title loan was 204%, meaning that borrowers typically paid more than double the amount of their loan over the course of a year.

Apply Now

If you are considering a title loan in Franklin, Missouri, TheGuaranteedLoans is here to help. As a connector service, we can help connect you with potential lenders who offer title loans. Simply fill out our online application and we’ll work to match you with lenders who may be able to offer you a loan. Remember, a title loan should be considered a last resort and it’s important to carefully consider your ability to make repayments before taking out a loan.