April 30, 2019
In Kansas City alone there are over 120 banks and bank branches. With so many banks and financial institutions, it should seem out of the ordinary that so few people can get a small loan for simple things like a car. But the reality is that for many in the Kansas City area, obtaining a loan is not easy. Having bad credit can impact a person’s ability to obtain and apply for loans, and the reality is that more people have past credit issues than those who have optimal credit. It would seem in this case that appealing to a more substantial portion of the population (in this case, those with credit history issues) by offering them lending options would be a benefit to banks and financial institutions.
Despite having such a large customer base that have credit history issues, it is extremely rare that those with subprime credit have an easy time obtaining a loan. Even if they have good enough credit to get a loan, unless they have a very high credit score they often won’t avoid having to jump through hoops to get that loan, and usually end up with much higher than average interest rates on their credit cards and otherwise. It is incredibly discouraging to go through the standard credit application process if you have poor credit. But title loans are a perfect and easy option for Kansas City residents with less than prime credit history.
What is a Title Loan?
A title loan is a loan taken out against the worth of your car. A title loan company pays you for the value of your car and then takes ownership of your car’s title. While you pay off the loan that was taken out against your car’s title, you will make payments on the loan, and the title loan company will essentially own your vehicle. What is perfect about this is that you still get to drive and use your car, the title loan company just holds on to the title while you pay off the loan. It is similar to what you do when you finance your car through a dealership – they technically own the car until you pay it off in full, but you enjoy the benefits of using it.
Title loans are a perfect option for those with credit issues because they do not require the lender to have excellent credit. Instead, they use the physical car itself as collateral. In a way, it is like pawning a piece of jewelry or a bicycle. However, instead of having to pay off the item’s worth all at once in full to get it back, you make payments on it to retain ownership. This is a lot more attainable than payment in full all at once, and it even gives the person who took out a title loan the opportunity to rebuild their credit by making continued on-time payments.
How Does a Title Loan At Midwest Title Loans Work?
Obtaining a title loan at Midwest Title Loans is a streamlined process that is simple for all. You don’t need to have poor credit to get a title loan. One of the many benefits of taking out a title loan is that you almost always walk out of a title loan establishment with your full loan. Unlike traditional lending options, there is no wait on the application process and no wait on the disbursement of funds. If you apply online, you can even shave down your visit to twenty minutes or less.
To apply for a loan, either visit our location or apply online. From there, you will bring your car into one of our sites to be inspected. The inspection process will look at the appearance and overall functionality of the vehicle and will determine its worth based on those things. Once we decide how much we believe your car is worth, we will make you an offer on your vehicle. If you accept the offer, you then turn over the title of your vehicle as an assurance that you will make payments and you walk away with both your car and the full cash value for your car.
Are There Any Restrictions on Lending With Midwest Title Loans?
As with anything financial, there are always restrictions. Luckily, we have very few restrictions. Your car doesn’t even have to be in working order – in fact, many people who take out title loans use the funds they get from their title loans to fix up their car. This, in turn, increases the value of the car overall!
At Midwest Title Loans, the following lending restrictions apply:
- You must be 18 years of age or older.
- You must have a job and must be able to provide proof of that job. This proof can be paycheck stubs, invoices (if you are self-employed), or your most recent tax return.
- Your title must be free of liens. What this means is that you must own your car outright and no one else’s name can be on the title. The most common scenario in which liens are found on a title is when a car was purchased and is being financed through a dealership. Technically they own the car until you have paid them in full for the original contracted price of the loan.
- The car must be in your name. Even if your spouse owns a car outright, your spouse must be the one to take out the title loan, not you.
- You must bring your ID. Your ID is how we know that you own the car and are who you say you are. If you don’t have an ID, we cannot offer you a title loan.
Midwest Title Loans serves customers in Missouri and Kansas. We have locations in Kansas City, Gladstone, and St. Joseph, Missouri, and Locations in Kansas City and Overland Park, Kansas. If you’ve had issues getting traditional loans and financing options in the past or need quick cash, contact us today! We are open Monday through Saturday in all locations.