January 20, 2020
What Is a Title Loan?
A title loan uses the value of real property as collateral and doesn’t require a credit check. Real property that can be used for a title loan includes houses, commercial buildings, and vehicles. For those with poor credit, the most common type of title loan in Kansas City, Gladstone, and Overland Park is the car title loan or vehicle title loan.
If you own your car outright, you can use it as collateral for a title loan.
How Does a Title Loan Work?
When you get a car title loan in Gladstone, Kansas City, or Overland Park, you’ll typically drive your car to a trusted car title loan provider like Midwest Title Loans. Our process has been perfected over the hundreds and thousands of title loans we’ve provided to customers in Missouri and Kansas, making it one of the easiest and fastest ways to get a title loan in the country.
While we evaluate your vehicle, you’ll fill in a short form and provide your photo ID. On the approval of your loan, we’ll hold on to the title of your vehicle and hand you the cash. You’ll drive off in your car, cash in hand.
At the end of the loan term (typically 30 days), you’ll repay the loan and get your car title back.
Why are Title Loans One of the Best Poor Credit Loan Options in Kansas City?
For many of our customers, the most important reason that title loans are the best choice for them is that they’re unable to get financing through traditional means. Even one’s own bank can be pretty cagey about loaning money if one has an exemplary track record with credit. Without owning your own house or having an excellent credit rating built up over a number of years, you’re unlikely to get a loan from a bank.
Even if you are a good candidate for a loan from a bank, there are a lot more hoops to jump through when it comes to getting a loan from one compared to a title loan from a Kansas title loan company. The bank will require much more documentation, proof of income, and paperwork to be completed. Importantly, they will check your credit rating to see whether your past credit choices have been handled well. This can be a sticking point for many people with poor credit.
Is It Better to Get a Car Title Loan or a Personal Loan?
Personal loans are other short-term loan options available in Kansas. A variant is payday loans, where you hand the provider a future-dated check for an amount of money you borrow plus interest.
One reason to choose a car title loan over a personal loan or payday loan is the amount you’re able to borrow. Typically, you can borrow a lot more with a car title loan than with a payday loan.
Secondly, you’re usually offered a better interest rate when you choose a car title loan over a personal loan. As the loan is secured against your vehicle, there is less risk to the lender, so they are able to offer you a better interest rate. This is because they don’t have to pay so much for insurance and they don’t need to factor in so much money to cover the risk that you and others might not repay your loans.
Can You Get a Flexible Car Title Loan in Kansas?
Though loan companies have been providing car title loans for just about as long as cars have existed, a relatively recent development disrupting the industry is the flex title loan.
A flex title loan has a lot of the same features as a standard car title loan. Indeed, it’s virtually the same but the provider allows you to roll over some or all of the balance to the next month as long as you pay the minimum payment each month. This makes the title loan a lot more flexible and more akin to a longer-term loan.
Flexible title loans from Midwest Title Loans have additional benefits. Firstly, interest is calculated on a daily basis and only on your balance for that particular day. If you’ve only borrowed a small amount for a few days, the interest will be minimal and certainly much less than a standard title loan that charges a flat fee.
Secondly, if the balance on your loan is zero, you don’t pay anything at all. This makes a flex title loan much like a credit card with a sizable credit limit that you can dip into whenever you need it, paying nothing when you don’t. Borrow money for a few days, pay it back, and you’ll be charged a relatively small amount of interest.
Flex loans represent the evolution of cat title loans, offering the convenience of a high-limit credit line to everyone who owns a car and has the means to repay the loan.
A More Friendly Loan Service
So if you’re sick of being turned away by banks who only see you as a number, consider a title loan in Kansas City, Missouri, Our salespersons will do everything they can to get you the cash you need as quickly as possible. All you need is a car drivable to one of the four locations, the car title in your name, no liens on the title, and a photo ID. You must be over 18 years old to avail of a car title loan.
Even if your car is a wreck, your car tags are expired, or you don’t have car insurance, you can still get a vehicle title loan. If you have any other questions about the process, fees, timescales, or requirements, please don’t hesitate to get in touch with us today. We believe you’ll find the process of getting a car title loan at Midwest Title Loans easy, fast, and much better than any other loan options in Missouri for those with poor credit.