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Business Loan Understanding Title Loans in McBride, Missouri
When unexpected expenses or financial emergencies arise, it’s tough to know what to do. You may have tried to secure a traditional loan from the bank, but due to a low credit score or a lack of credit history, this option may not be available. In these situations, many people opt for title loans.
In the United States, title loans are legal in many states, including Missouri. A title loan is a type of secured loan that allows borrowers to use their vehicle’s title as collateral. Essentially, the lender places a lien on the vehicle title and holds it until the loan is repaid. If the borrower is unable to repay the loan, the lender may repossess the vehicle and sell it to recoup their losses.
The Basics of Title Loans in Missouri
In Missouri, title loans are popular because they offer a simpler and faster borrowing process compared to traditional loans. Title loan lenders typically don’t consider the borrower’s credit score or history when approving a loan. Instead, the value of the vehicle and the borrower’s ability to repay the loan are the primary factors considered.
In Missouri, title loan regulations cap the loan amount at $5,000, and the loan term must be no less than 30 days and no more than 180 days. Interest rates are not capped, but the state has enacted some limits on how much lenders can charge in fees.
Benefits of Title Loans
Title loans offer several benefits to borrowers, including:
- Quick access to cash: Title loans typically have a fast application and approval process, which means that you can get the cash you need when you need it.
- No credit check necessary: With a title loan, the lender doesn’t check your credit score or history, which can be helpful if you don’t have a good credit score or a long credit history.
- Don’t lose your vehicle: While your vehicle is collateral for the loan, you can still keep your car and use it while you’re repaying the loan.
The Risks of Title Loans
While title loans can be a helpful financial resource, there are risks involved, including:
- High interest rates: Title loans often come with higher interest rates than traditional loans. It’s important to note that these rates can vary depending upon the lender.
- Repossession: If you can’t repay the loan, the lender has the right to repossess your vehicle to sell it and recoup their funds. This can be devastating if you rely on your car for transportation or your livelihood.
- Additional fees: Title loans can come with additional fees, such as origination fees and prepayment penalties. Be sure to read the loan agreement carefully to understand all the costs associated with the loan.
Interesting Facts and Statistics on Title Loans in McBride, Missouri
- According to the Missouri Department of Insurance, Financial Institutions and Professional Registration, there were 1,179 licensed title loan locations in Missouri as of December 31, 2020.
- The average title loan amount in Missouri is $1,200.
- The average APR for a title loan in Missouri is 300%, which is higher than the national average of 25%.
Applying for a Title Loan
If you’re interested in applying for a title loan in McBride, Missouri, TheGuaranteedLoans can help connect you with potential lenders. We are a connector service, not a direct lender, but we work with a network of trusted lenders who can provide you with the funding you need.
To start the process, simply fill out an online application on our website. Once you’ve submitted your application, we’ll work to connect you with a lender who meets your needs. If you’re approved, you’ll typically get your funds within one business day.
The Bottom Line
Title loans are a legal and popular financial option in Missouri. While they can be helpful, it’s essential to understand the risks involved. Before applying for a title loan, be sure to carefully read the loan agreement and make sure that you can repay the loan on time.
If you’re interested in applying for a title loan in McBride, Missouri, TheGuaranteedLoans can help you find potential lenders. Apply now to get started!