January 14, 2019
Kansas City Title Loans Can Help if You've Fallen on Hard Times
Who among the people you know haven’t fallen on hard times at least once? Between fluctuations in the economy, emergencies, and everyday life it is a lot more likely that a person will experience a financial hardship than someone who won’t. In Missouri and Kansas, however, misfortune can take on new meaning. In Missouri, the state poverty rate is 15.1%, and Kansas City has an even higher poverty rate, making up 17.5% of the population of the city.
For these populations, hard times don’t just mean having to scrape by once or twice. Hard times for those who live in sustained poverty often last for years - having to scrape by from paycheck to paycheck and sometimes having to sacrifice between food and bills. For those who live in sustained poverty, a savings account is not a reality. Without savings, however, emergencies become disastrous, seemingly hopeless events. Even those with good credit have issues getting funding when emergencies come around that require quick payment.
If you’re in financial trouble - perhaps from an emergency health event or the breakdown of your only reliable vehicle - a title loan from Midwest Title Loans can help. With compassionate and helpful staff, understandable terms, and quick cash, we aim to get all our customers the money they need when they need it.
Title loans work by offering monetary reimbursement for substantial physical collateral - namely cars, trucks, or other vehicles. There is no associated credit report filed during the application for a title loan. You simply bring the title to your car into Midwest Title Loans, and we determine the car’s overall value. While newer cars often bring in the highest loans, loans of up to $10,000, we are not discriminatory when it comes to the vehicles offered as collateral for a title loan. Sometimes, even a small loan from an older car can make a difference in a person’s financial security.
Once we determine the aftermarket value of the car, we make you an offer on it. When you accept the offer, the title of your vehicle transfers to us. You still get to keep your car, which makes it a perfect option for those whose cars are in good working order but might need money for a non-car emergency. The only thing that changes during this process is the legal ownership of the car, which belongs to us once the paperwork is signed. After the loan is paid in full (usually over a period of 12-24 months), full ownership of the car reverts to you, and you are back where you started!
People who have low or no credit often opt for this lending option because the loan is not predicated on their creditworthiness. If you have a car, you’ll get a loan usually during the same visit.
What to Bring When You Come into Midwest Title Loans
To save time, it is always best to have all the documents you need to apply for a loan. At Midwest Title Loans, these documents include:
- Information about your birth, gender, and other identifying information. Be prepared to back this information up, so also be sure to bring in proof of residency and photo identification.
- Residence information, including proof you live where you say you live.
- Information about the car, including the VIN, make, model, and any other information you have about the vehicle that might be necessary. A Carfax report will be run on the car to help determine its value.
- Employment information (if applicable). Although it is not necessary for you to have a job to take out a title loan, it does help us make a better estimate about how large of a loan you can take on. Many people take out title loans in the event of redundancy. However, we might be able to offer you more if we know you have a steady job that will let you pay it back.
- Three personal references we can contact, so be sure to have their contact information.
Alternately, you can save the time that you spend in one of our office locations by filling out one of these handy online forms. No need to put your social security number anywhere on the form, however, we might ask you for it during the in-person process, so it is best to know it or bring it in when you visit.
What Should I Expect From a Title Loan?
A title loan is only for the amount your car is worth, which means if you have a junker only worth $800 but need $2,000, you might need to seek alternative funds elsewhere. However, once you get the loan, the process looks a lot like typical lending processes. You have a repayment period, during which we make periodic reports to credit bureaus about your repayment history. This is great if you are taking a title loan out in part to rebuild your history, as repeated on-time payments will help you boost your credit score. Work with your lender to see whether a weekly or a monthly payment works better for you. We hold on to your title while your car is in repayment, but as soon as our loan is repaid in full, you get your title back.
How Long Will it Take Me to Pay Back my Loan?
In general, most repayment terms are for a few months to no more than two years. Although this seems like a short period, there is a silver lining to this. A shorter repayment period ultimately means less money paid back. Over the period of a traditional loan, borrowers often end up paying thousands of dollars of money that they never intended to pay. Although title loans have interest rates, the short nature of the loan drastically reduces the amount you spend in interest over time.
If you live in Kansas City, St. Joseph, or Gladstone, Missouri or Overland Park, or Kansas City, Kansas, don’t let hard times get you down. Come over to one of our multiple locations and let us see what we can offer you for the worth of your car so you can get over this slump and back on financial track.Read more
January 7, 2019
How To Know if a Flex Loan is Right For You
We’ve established many times before that the traditional lending process is not always the best choice for people. It requires people to have good credit, and even when they do have good credit they often must wait weeks for the loan. However, sometimes taking out a title loan against the full value of your car is also not the best option. When you need a little flexibility with your lending options but are unable to take out a new credit card, a great alternative is a flex loan. Luckily for Kansas and Missouri residents, Midwest Title Loans has this lending option available, and it is just as easy to apply for as a title loan.
What is a Flex Loan?
A flex loan is a line of credit that is offered to you by evaluating the worth of your car and allowing you to borrow money against that worth. In many ways, it is like a credit card, but you get real money rather than a card to use. Unlike a loan, you only pay back the amount and interest that you borrow against rather than paying back the entire value of the car.
How do Flex Loans Differ From Title Loans?
The application for a flex loan and a title loan are quite similar. It is merely the outcome of each that differs. With a title loan, the borrower is given the full amount for the aftermarket value of the car and is expected to pay back that total value to legally own their vehicle again. With a flex loan, your car is evaluated in the same way, but you get to choose how much money you want to borrow against it. For instance, if you need to go to the doctor but don’t get paid for two weeks, you might take out a flex loan and pay back the amount you owe once you get paid. In this way, you are not taking out a full loan for your car, and you build credit in the same way you would a credit card.
How a Flex Loan With Midwest Title Loans Works
Flex loans are only available to adults age 18 and older. If you are younger than this, you will need to speak with your parent to see about their taking out a flex loan for you. Under no circumstances are we able to lend to someone younger than 18. If you are 18 and plan on taking out a flex loan with Midwest Title Loans, You will need to bring in:
- Income verification: this will help us determine how much we can lend to you.
- Photo identification: preferably a driver’s license, as you need a driver’s license to operate the car.
- A title without a lien on it: although some flex loan providers will allow car titles with liens, we do not accept car titles that are not outrightly owned by you.
- Your vehicle: even if you bring your title in, you must also bring your vehicle in for evaluation. Information about the car will only tell us the Kelly Blue Book value of the car. The interior and exterior conditions will also tell us more about how much your car is worth.
Other than needing these items, you should have no issue taking out a flex loan through our establishment.
Once we evaluate your vehicle and verify you are who you say you are, we take ownership of your lien, and you walk out of Midwest Title Loans with a flex loan for the amount that you requested. Just repay the loan per the terms, and once we receive payment in full, you receive your title back. There are no workarounds or hidden conditions.
What Are Some of the Benefits of a Flex Loan?
Flex loans and title loans look similar, but as you have seen, they have their differences. For those with poor credit, a flex loan might be more appealing than a traditional title loan. Here are only some of the many benefits of a flex loan:
- A flex loan is a line of credit. This differs from a traditional loan because it allows you to borrow as much or as little as you need when you need it, rather than having to borrow the whole amount and pay for that entire amount for years.
- Interest rates are based on the days you need them. Traditional lines of credit have interest rates that stay effective the entire time their line of credit is open. Flex loan interest rates only apply to the days that flex loans are taken out. For instance, if you take a flex loan out for a day to make a payment the few days before your paycheck, you only have to pay interest on the days you have your money. So, if you take out a flex loan a few days before your paycheck and pay back the loan in its entirety when you get paid, you only have to pay back interest for those few days you had the money.
- Flex loans can be closed out or kept open. With traditional loans, you pay back the loan, and that is effectively the end of that borrowing event. With a flex loan, when you pay off the original loan, you can choose to keep that loan open and take more out.
- As you successfully pay off your loan amounts, your line of credit increases. Much in the same way that successful credit card payments often increase your credit amount, so too do flex loan payments. Upon successful and on-time payments, your line of credit often increases.
I’ve Considered These Questions, But I Still Have More. What Should I Do Now?
So, perhaps you’ve read through these and have a pretty good understanding of what a flex loan is and might be considering taking one it. If you still have more questions that is normal. Flex loans are not talked about as much as conventional loans or lines of credit, and therefore they might not seem as easily accessible to you. Rest assured that the experts at Midwest Title Loans will be able to explain your flex loan and line of credit options better. Stop by one of our locations in Kansas City, St. Joseph, or Gladstone, Missouri or Overland Park, or Kansas City, Kansas. Or, to set up a meeting, contact us for more information.Read more
December 28, 2018
What is a Title Loan with Liens and How It Can Help You?
In the United States, there are hundreds of title loan companies-- which makes title loans (which are also known as payday loans) one of the most profitable business types in America. In the South, title loan companies are fairly prevalent, which means that those who live in the south have most likely seen a title loan company before. Therefore, they might be familiar with how the lending process works. However, there are different lending protocols for title loan companies, and obtaining a title loan with a lien is a different beast entirely Although it sounds like an extra step in an already complicated process, customers hoping to take out a title loan should consider taking out a title loan if they need it, even if their car does have a lien. It’s a great option for those who need cash quickly and might have issues getting it elsewhere.
What is a Title Loan With a Lien?
Applying for a title loan usually starts with a little paperwork and collateral in the form of your car’s title. Whereas traditional lending almost always requires you to run a credit check, obtaining a title loan usually just involves investigation into whether you are the rightful owner of your car. Because this process takes only an hour or two in most cases, people often obtain a title loan when they need cash the same or next day. Verifying that you own the car is usually enough proof that you can pay back the loan, and handing over the title to a car is the physical collateral that takes the place of credit history.
A lien is an indication that the car does not fully belong to you. Basically, it says that you are making payments toward full ownership of the car, but legally the car’s title still belongs to someone else. Most often this happens when a person purchases a new or used car from a dealership. Your name is still listed on the title, but the dealership or sales entity has property rights over it until the full amount is paid. Once the full amount is paid, the lien is released, and the car then belongs to you.
While many companies shy away from lending for a liened car, Midwest Title Loans believes that with the right understanding of how obtaining a title loan with a lien works, providing a loan for a car with a lien on it can be extremely beneficial.
The way lending with a lien works is this: You bring your car in to have it evaluated. Whether it is a new or old car, there is an overall value placed on your vehicle. If you owned the vehicle outright and were to apply for a title loan, you would receive a loan equivalent to the full value of the vehicle. Title loan companies like Midwest Title Loan who lend to car owners with liens on their cars still lend for the full amount but instead divide the full value of the car. Using part of the value to pay off the remainder of the debt and giving the rest to the customer, the lien is then transferred to the title loan provider, and you continue to make payments on the loan as you would have made on your car.
How Can a Title Loan With a Lien Help You?
If you’re wary, you’re not alone. It is a huge step to consolidate debt from one lender to another, and it can feel strange at first. But there are many reasons why you might want to take out a title loan even if you have a lien on your car. Here are some of the most common reasons we see from our satisfied customers.
It saves you from identity theft. Although you can apply online, most customers visit one of our locations to apply for a loan. Online credit card and loan applications require your social security number, making your identity an easy target for attack. While many criticize the interest rates of title loan providers, very few things are quite as harmful as identity theft caused by stolen social security numbers. Midwest Title Loan will never require your social security number for loan applications. Merely bring your title, and we’ll work with you to fill out the rest of your application.
It allows you to make last-minute purchases when you have few other financial options. With poor credit, it can be hard to find the last-minute financial help that you need to make big purchases or deal with unexpected bills. Title loan companies do not need access to your credit history because the collateral that they use is your car rather than your constructed credit history.
You can beat out the rates of your original loan. Let’s face it -- most people with borrowed credit or loans have had a moment in their lives where they’ve regretted taking out a loan with that company. The biggest stressor? The interest rates. Title loan companies can take heat for their interest rates, but often their interest rates rival and even beat the original car lender. Sometimes, those who come to Midwest Title Loan find better repayment rates for their car, which means they not only get a temporary loan for the remainder of the car’s worth, but they also can make continued payments at a lower price.
It can help you get closer to full car ownership. When we purchase your title, we help you get one step closer to owning your car. Pay more than the expected amount or the total that we require -- plans are relatively flexible in that manner. Either way, the shortened repayment period means you spend less time with a car that doesn’t actually belong to you.
Midwest Title Loans is your trusted stop for title loans with liens in Kansas and Missouri. Stop into one of our locations in Kansas City, Gladstone, or St. Joseph, Missouri or one of our Kansas locations in Overland Park or Kansas City. Or, visit our website for more information. One of our title loan specialists will be available to help you get the money you need regardless of your title or credit history.Read more
December 21, 2018
Midwest Title Loans Has You Covered if You Need a Title Loan Now
There’s a stigma surrounding payday loans or title loans, and the stigma doesn’t have to do with the loans themselves. Popular myth has lead people to believe that only the desperate borrow against things like their car title. The truth is -- more people than you’d think participate in this type of lending. Nearly 12 million Americans take out short-term loans each year. And it’s not just the same sorts of people taking out these loans. Disabled people, parents, and people of all races are statistically recorded as taking out title loans, payday loans, and other types of loans. Their reasons for doing so are not recorded, but it's safe to assume that their reasons are as diverse as the set of people participating in this form of borrowing.
For whatever the reason, it is sometimes necessary to take out a title loan for quick cash. If you find yourself temporarily in financial need, Midwest Title Loans can help you support your financial goals and wants. Here’s a look at some of the most common reasons our customers apply for title loans and what our application process looks like.
Why Do People Take Out Title Loans?
Although it is not always the case, many people take out title loans when they are in need of cash quickly and might not have the time to apply for a traditional bank loan. Even with the best of credit, applying for a bank loan and receiving the funds for it takes a few days to a week. In instances where time is of the essence-- like posting bail for a loved one or paying for unexpected surgery -- many loan applicants do not have the time to work with a banker on getting approved for a loan and then wait for the loan to come through. Additionally, bank loans require a credit history report, which not only impacts your credit score but can put you at risk for identity theft.
Because title loans do not require a credit history report, there is no need to lend anyone your social security number or other identifiable personal information. Title loans use legal car ownership as collateral rather than depending upon the credit history of the customer. Creditworthiness can be a good indicator of how capable a person is of making payments on time. However, it does not tell the whole story of the customer. Instead, having physical collateral prevents the customer from being denied access to a loan when they need one. This means customers with poor credit history or no credit history have the option of using their title as verification or promise of payment rather than depending on their credit history.
Recent statistics indicate that nearly 30% of Americans have credit scores below 601, and even more Americans have no credit history whatsoever. These scores almost immediately disqualify this subset of Americans from receiving any help from typical financial institutions. Even more Americans have fair credit, which can indicate anything from having high credit card balances but consistently on-time payments to missing one payment and having a few credit inquiries on file. People with fair credit are also consistently turned away from loan opportunities, even if they have a stellar payment record. For these groups of people, having a quick and easy application process like the ones associated with title loans can make a huge difference in the quality of life for nearly half of United States citizens.
The Application Process -- What it’s Like to Apply For a Loan at Midwest Title Loans
If you’re the sort of person that dreads filling out forms, then you’ll be delighted at how simple the process of applying for title loan is. Typically, it takes less than half a day, and you walk out of our offices with the cash you need.
Customers applying for a loan at midwest title loans come with their title in hand and their car. Midwest Title Loans gets a little information from you -- including who owns the car, what your monthly income is, and a few other elements to determine how much money we can lend you. We approve almost all of the people who come here for a loan, but the ultimate deciding factor for our lending approval is whether or not you own your car outright. If your name is on the title and you also retain all legal rights to your car, we have no problem lending to you for the full value of your car. We will set up a payment contract and lay out our terms (including interest rates). You will receive your loan once the payment terms are figured out.
We also consider cars with liens on their titles. At title with a lien on it implies you are working on paying off your car, and while your name is on the title, the legal authority of the car belongs to another entity (usually a car dealer). In cases with titles with liens on them, we can buy out the remainder of the car lien and give you the remaining value of the car as a loan. For instance, if you owed $4,000 on a car but it was worth $10,000, we could give you $6000 in cash and you would owe us for the full car’s worth since we bought out your debt.
Ultimately, you receive your car back once the full loan amount is paid. By this we mean you drive out of our store with both your car and your loan amount. However, we retain legal rights to the car until the loan amount is paid. This is to ensure that the loan is paid off in due time. The only time we do not accept a title is if you have no legal right over a car. For example, if your spouse is the only person on the title and owns the car outright, you may not use the title for collateral without your spouse’s permission.
Are you in need of cash quickly? Let Midwest Title Loans help you with a title loan today. With locations in Kansas (8212 Metcalf Ave. in Overland Park and 2500 State Ave. in Kansas City) as well as in Missouri (603 S. Belt Hwy in St. Joseph, 6420 North Oak Trfwy in Gladstone, and 330 W. 85th Street in Kansas City), we are ready to help the Midwest get the cash it needs fast. For specific questions, or to make an appointment, contact us.Read more
December 15, 2018
Car Title Loans Can Be Confusing, Let Us Help Clear Things Up
Loans are a big part of the United States economy, but for the average consumer, they can be confusing. Each year, over 1.7 million people in America take out title loans alone and even more take out traditional loans through a bank or other credit institution. Bank loans are far more popular for lending, which is probably why so many myths exist around the humble title loan. Myths have turned title loan lenders into bad guys -- institutions who are set on making as much money as they can in the quickest time possible and having little to no regard for the person taking out the loan.
These myths can make the application process even more confusing than it already is. But Midwest Title Loan has been in the lending business for years and is committed to dispelling myths about title loans and making the process easier. We promise that if you’re in need of a loan and are considering borrowing through our institution, you’ll feel much more confident about deciding what type of loan you want after working with us.
What Are Title Loans and How Do They Differ From Traditional Loans?
Applying for a traditional loan or line of credit is so mainstream that almost everyone has some idea about how to do it. This lending process involves working with a banker to determine your creditworthiness and taking out a loan based on that creditworthiness. Because your credit history is determined not only by how often you miss payments, but also by the age of your credit history, what percentage of your credit card you’re using, and how many accounts you have open there are many ways to receive a poor or fair credit score. In fact, the majority of Americans are on the lower end of “good”, and even more have fair and bad scores, and this does not mean that all of them have consistently missed payments.
Having a credit score of lower than 670 can severely impact your ability to take out a bank loan -- sometimes even preventing you from doing so. That leaves many Americans with limited options if they find themselves in financial hardships. Some opt to take out lines of credit, but these lines can come with hefty interest rates that cost them thousands of dollars over the life of the loan.
Instead of using your credit history, car title loans instead use physical collateral in the form of your car’s title. For traditional lenders, your credit indicates to them how much you can take out and how much you can pay back. Title loan lenders understand that credit scores often do not take into account situational factors. Title loan companies like Midwest Title Loan instead offer you the value of your car, and you make payments to regain access to your title. There is no credit score involved, and the application process allows most people to be approved for loans on their car’s worth.
What is the Application Process Like?
Those applying for a car title loan come into a title loan lender location and provide information about their car, including the owner of the car and the make, model, year, and condition of the car. Generally, as long as your name is on the title and you own the car outright, you are approved, and the lender goes over the amount they are willing to lend you against your car. If your name is on the title but has a lien on it, that means you are making payments toward ownership of the car, and legally it is not yet yours. Having a lien on your title does not necessarily mean you will get turned down for a loan. Instead, the title loan lender will set up a loan offer that pays off the remainder of what you owe to the original owner and gives you the rest.
In other words, if you come into a lender with a lien on your title, they will quote you the full retail value of your car. However, your remaining amount due will be subtracted from the full retail value, and your loan will be in the amount of what is left. However, if you intend to take out the loan for your title with a lien on it, you will be expected to repay the full worth of the car.
Once you accept the loan amount, the lender will go over payment terms with you, and you will be ready to receive the loan payment.
What Happens to My Car After I Take Out a Loan?
In legal terms, the title loan lender owns your car until you pay off the loan. However, most title loan companies will let you continue to use your car as a bank or a buy here pay here lot might let you do. Only if that you are unable to make payments consistently will your car be held by Midwest Title Loans.
Are They Really as Dangerous as Modern Myth Claims Them to Be?
A lot of falsities are spread about the dangers of taking out a title loan, but in truth, title loans are no more dangerous than credit cards or regular loans. If you have bad credit, no credit, or just need money quickly, a car title loan is often your best bet. And if you are clear with your provider and ask questions about your repayment terms and the terms of car ownership, you’ll understand the full parameters around borrowing from a title loan company.
Midwest Title Loan’s priority is to help our customers achieve their purchase goals with the help of our loan services. Whether your priority is to pay off your car’s amount owed more quickly or to take out a loan to pay for unexpected medical expenses, a title loan is often the best way to achieve these goals. For more information about what we do, or to clarify lingering questions about the title loan process, please stop by one of our stores. We have locations in Missouri, including Kansas City, Gladstone, and St. Joseph, and locations in Kansas including Kansas City and Overland Park. For more information on how to get to one of these locations, please visit our contact page.Read more
December 11, 2018
Top Five Ways to Beat the Financial Stress of the Holidays
Feel like you’re going to put yourself in debt preparing for the holidays? You’re not alone. In 2017, Americans with pre-holiday debt admitted to adding $1, 054 to that pre-existing debt during the holiday season. Each year these rates have gone up substantially, indicating not only that more people are falling into debt, but debts are becoming harder to pay off. The stigma of debt exists. However, if you’re in this boat, you should not feel ashamed. Millions of people in the United States alone feel like they need help during the holidays.
December and the beginning of the new year are meant to feel hopeful, peaceful, and to be spent with family and loved ones in a time of gratefulness. Not having the money to pay for presents (or even basic necessities) during the holidays can disrupt these feelings. If you are struggling to afford the perfect holiday, there are some things you can do about it.
Here are the top five ways the folks at Midwest Title Loans beat the financial stress of the holidays.
1. Come up with a budget and stick to it.
If budgeting isn’t part of your year-round financial routines, it should be. Budgeting helps you plan for the future without the stress of living paycheck to paycheck. Starting your budget in January of each year saves you year-round stress and allows you to plan for Christmas of that year. That way, if you want to go all-out for Christmas, you’ll be able to cut back in certain areas of your life to be able to afford it.
Are you just reading this in time for the last-minute holiday shopping push? There’s no better time to start budgeting than the present. Find unnecessary costs in your spending history -- like memberships and twice-a-day trips to your favorite coffee shop -- and cut them out temporarily. You’ll find you have extra spending money and less stress after you do this. And who knows? If you start this year, you could find yourself with substantially more money for spending on gifts next holiday season.
2. Opt for homemade gifts and low-key parties.
Everyone loves a good holiday party, but here’s a reminder: you don’t need to have the best one. Most people average about 15 hours attending holiday parties. And, unless you’re a millionaire, people will probably attend a party that is more extravagant, more food and booze-plentiful, and better musically prepared for. That doesn’t mean to say that you shouldn’t throw a party, but if you’re crunched for money, offering a low-key party or foregoing throwing a party that year can be just what your bank account needs for recovery.
In the same vein, if you’re responsible for a gift for a co-worker or distant relative for one of those parties, consider a low-cost DIY gift. Not only will it be memorable, but it will save you from having to shell out more money for a gift that might not be a hit.
3. If you’re buying for relatives who live in another state, consider online purchases or non-physical gifts.
Have a huge family spread out all over the country? This can wreak havoc on your bank account. Not only do you have to buy presents for them and their families, but you have to work shipping costs into those purchases. This can take $400 budget and move it to a $100 budget depending on how many family members you have, how many packages you have to ship, package weight, and shipping distance.
This is where online shopping can be your friend. Utilizing online merchants for purchases saves you shipping costs, and ensures that your gifts are on-time for the big day. Many online retailers have gift wrapping options. Alternately, you can work with your family when it comes to wrapping your presents for children when they get there. Want to make sure the present is a surprise? Opt for gift cards or local certificates for special, non-physical gifts with low shipping rates.
4. Make a plan and utilize your credit card.
Sometimes, you need to utilize your credit card -- and that’s okay. The important part of this process is that you make a plan for your credit card spending before you spend it. Set up a budget based on your interest rate and the amount you believe you’ll be able to pay off comfortably. Then, spend only within this budget. It also helps to evaluate unnecessary costs as you would for non-credit budget. Cutting out the extra spending will make it easier to pay off any excess credit in a reasonable amount of time.
5. Still need more money? Consider a title loan.
Sometimes none of these options work for people during the holidays. Perhaps they don’t have the time and need money to make a last-minute purchase. Traditional loans take quite a bit of time to apply for, up to weeks. Additionally, traditional loans are dependent on your credit history. Credit history is so greatly impacted by different factors that anyone can have a poor or fair credit score even if they make their monthly payments on time.
Title loans take very little time to apply for and are usually ready the same day. They simply require that you own a vehicle and have access to its title. When you bring your title into a title loan establishment, they determine how much your car is worth and let you borrow against that worth. That way regardless of your credit you are still able to get the money you need for the Christmas season.
Midwest Title Loans follows a simple application process that stresses term transparency, customer rights, and long-term benefits. We know that the holidays are financially stressful for a large portion of Americans, which is why we want everyone to know about the benefits of obtaining a title loan through our company. If you live in Kansas City, St. Joseph, or Gladstone Missouri or live near Kansas City or Overland Park, Kansas, we want to get in touch with you about your holiday spending. To make an appointment and see how much we can lend you this holiday season, contact us.Read more
December 8, 2018
How To Get a Title Loan in Kansas City With Bad Credit
Missouri and Kansas houses hardworking, salt-of-the-earth people. We’re known for our great barbecue, our music and arts scene, and our beautiful fall foliage. But one thing these states are not known for is for their good credit scores. The average Kansas resident with a credit card has an unpaid balance of $6,082, whereas the average Missouri resident with a credit card has an outstanding balance average of $5,897. This doesn’t mean people with high balances on their credit cards are bad people or even bad at controlling their finances. However, if these balances are over half of the total limit of their credit card, there can be dire consequences for the cardholder.
Credit card usage has a high impact on credit reports, which means even if a cardholder is excellent at budgeting, pays all their bills on time, and has a decently old credit history, they can still have a less-than-stellar credit score because of the amount they owe on their cards. When it comes time to buy a car or pay for a significant house repair, obtaining a loan with poor credit scores is next to impossible. Luckily, if you own a car and need to make a payment quickly, options exist in the form of a title loan.
A Closer Look at Title Loans
Title loans are a form of alternative lending that is optimal for people with poor or fair credit. This is because applying for a loan with your title does not involve a credit check. If you have a car and you own it or are making payments toward owning it outright, you have the means to obtain a loan.
These types of loans are for the full worth of the car. Instead of putting blind faith in your creditworthiness, title loans essentially buy your vehicle from you, and your successful loan payments ultimately end with your ownership of the car again. If you own the car outright, you bring it into a title loan lender, like Midwest Title Loans, and the lender then assesses its worth. The worth of a car is dependent upon many factors including the market value of the car, its condition, the type of car, and the year. Then, the loan offer is for the total value of the car.
If you do not own your car outright, or if you have a lien on the title, exceptions can be made to help you take out a loan against this car. In instances like these, the lender will still assess the total worth of the vehicle. Then, they will pay off the remainder of the amount due on the vehicle. As an example, if you own a 2018 Volkswagen Tiguan and still owe $10,000 toward the ownership of the car, the lender will send the owner a check for $10,000, and you will continue making car payments to the title loan lender. As you can see, nothing about the state of ownership of the car changes, you change to whom you make payments.
Dispelling Myths About Title Loans for People With Poor Credit
Unfortunately, many people do not consider title loans a viable lending alternative because of the big myth that surrounds it. From naysayers making claims that interest rates are far steeper than many credit cards to others who fear they will never see their car again, there are many false rumors spread about title loans. For people with poor credit or no credit history, physical collateral, such as their car’s title, is proof enough that they can make payments toward a loan amount.
The most important thing for those thinking about taking out a bad credit loan is to remember is that asking questions will help you in the long run. Reputable title loan lenders, like Midwest Title Loans, will help their customers understand the details of their loan because they know that the lending process is a symbiotic relationship. While some lenders do not care to discuss the details of their loans with their customers, the best lenders will because it ultimately means the best for the customer as well as the most profitable relationship possible for the lender. Good customers stick around, and that is true even in the title loan business.
Ask your lender about the interest rates, loan repayment period, how many payments you must make per month, the flexibility of those payments, including the payment dates and types, and even how they want you to pay. Some lenders will ask you to bring weekly payment into the physical location while some will allow you to mail it. Clearing up these questions with your lender before signing off on your loan will keep you protected while allowing you to reap the benefits of this bad credit lending option.
Some of the benefits of taking out a title loan include:
- Receiving payment quickly, generally on the same day.
- There is no need to make multiple visits to the bank at their request.
- Still being able to use your car. Unlike pawn shops, you keep your car while you make payments toward its worth.
- No one is turned away because of bad credit.
- This can shorten the amount of time you take to own your car fully.
- Small town businesses, like Midwest Title Loans, work harder to understand the needs of their neighbors.
For over 20 years, Midwest Title Loans has been serving the valuable communities of Kansas and Missouri with our financing options for bad credit. We see our services as a critical part of helping those who need additional financial help in times of economic hardship, and we strive for compassion, openness, and honest when doing business with our customers.
To get started with your loan, call or visit one of our business locations. We have stores in Kansas City, Gladstone, and St. Joseph, Missouri as well as locations in Kansas City and Overland Park, Kansas. For more details about the locations of our stores, store hours, or phone numbers, visit our website.Read more
December 4, 2018
The Top 5 Benefits of a Short-Term Loan
Student loan statistics don’t look promising for most borrowers, and that is showing in the prevalence of Gen Z-era high school graduates opting for non-college career routes. The average person with university-based student loans takes ten years or more to pay off all their loans fully, and that often delays them from starting families, seeking health and life insurance, and paying into a retirement fund. Long-term loans might seem like the best option at first, but between interest and the amount of time it takes to pay them off, long-term loans often have severe consequences for those who take them out.
Despite these consequences, the simple but effective short-term loan is villainized over traditional loans. Pervading ideas exist that the short-term loan is ultimately more expensive and has fewer benefits than conventional lending. We don’t want to start any conspiracy theories, but our competitors in the loan business might have their reasons for saying this, which is why those who can take out longer-term loans from financial companies do.
Unfortunately for many, loans with larger financial institutions are not always preferable or possible. Short time frames, poor credit, and the need to pay off a loan sooner puts traditional loans out of the picture. That’s where short-term loans -- like payday loans or title loans-- come into the view. Using physical collateral rather than credit history, it is possible for those with poor credit to take out loans quickly and with a shorter repayment period. And despite popular myth -- this can save you money and time.
Here are the top five benefits you can receive from a short-term loan financed through Midwest Title Loans.
1. Taking out a short-term loan can actually improve your credit rating.
For many loan seekers, getting a loan in the first place is often hard to do because of credit history. Getting denied funds from a major financial institution can feel like a hard blow, especially if you have a history of paying your bills on time. In reality, most Americans have less than great credit scores and shouldn’t let situations like fair or poor credit scores ruin their lives. Taking out a short-term loan for small needs, like car repairs or house fixes, allows you to make fast payments on a small sum. Pay all these on time and within the allotted period, and you might see your credit score drastically improve in a manner of months!
2. Emergency funding can be obtained on the same day
Emergencies happen, and when they do many of us do not have the funds to pay for them. As many as 40% of people living in the United States do not have enough money in the bank account to pay for a $400 emergency. For perspective, it costs an average of $2500 for the most basic broken arm services. In the event an emergency does arise, and you need the funds to pay for it quickly, a short-term loan might be your best option regardless of your credit score. With a very short application process, and funds available almost immediately, short-term loans are perfect for the unexpected.
3. You can plan your payments better when you can see an end date.
Where many loan customers go wrong is in taking out more than they know they will be able to handle down the line. College students, for instance, often take out loans and forego payments during college with the idea that they will pay for their loans as soon as they get a good job with their college degree. While this does happen in some instances, a recent study shows that only 27% of college graduates end up working within their intended career. An even smaller number of those get jobs that pay them well enough to pay their hefty loans off quickly. With a smaller loan, it is easier to budget for payments and make a sound judgment about the life of your loan.
4. You ultimately pay less interest, which can equate to less money paid total.
Short-term loans get a bad rap for having high interest rates, but even if their rates are higher they (which they often are not) the very nature of the loan means that customers pay less interest than with a traditional loan. The typical short-term repayment period is between a few months to one year. Over the course of 20 years, college loans can obtain thousands in interest, which is substantially more than with short-term loans. In short, although sometimes loan customers feel the sting of short-term loans a little harder, they ultimately end up paying much less.
5. You can take out a short-term loan with Midwest Title Loans without having a great credit score.
Short-term loans are designed for those with low credit scores. They often use collateral to back up repayment, but even when they don’t they depend upon collateral they make money by working with as many customers as they can. Midwest Title Loans helps customers understand exactly how much they can afford to take out and what their repayment will be like. For many, this is one of the only ways they will be able to take out loans, and repayment of that loan will help boost their credit score so more financial opportunities are eventually available.
While short-term loans are portrayed as the boogeymen of the lending industry, with the right knowledge and a good lender, the benefits of these loan types are multifaceted.
Get started with a title loan from Midwest Title Loans today. One of our knowledgeable agents will be able to assist you with the application and help you take the next step toward getting the money you need. We have three locations in Missouri, at Kansas City, Gladstone, and St. Joseph. We also have two locations in Kansas, at Kansas City and Overland Park. Our hours of operation vary based on our location, so be sure to call in or contact us before stopping by.
We look forward to working with you on your next financial investment.Read more
October 8, 2018
Times When Short-Term Loans Might be Right for You
The term “loan” comes with some weight for many in the Millennial and Gen Z range because of the consequences of student loans. While most student loan lenders expect their borrowers to pay off their loans in ten years, most take double that time to pay off. With statistics like these revolving around student debt, it’s plain to see why so many young Americans have a hard time believing that loans can be anything but long-term. But loans did not always use to carry this connotation , and there are many today who do not take advantage of short-term loan options because of the connotation. Here are some instances in which a short-term loan in Kansas City might be right for you.
When Is the Right Time for a Short-Term Loan?
When you have a stable income but need a little extra boost
There are many people out there who want to purchase big items and might have the extra money to take on monthly payments on a loan but do not have the extra money to take on a full purchase. People in this scenario take out short-term loans on things like computers, textbooks, car improvements, home improvements, and personal events like weddings. Those who take out short-term loans for these reasons often have plenty saved up toward the item or event that they wish to purchase and have no problem paying off the loan in a short period of time.
In fact, these are why short-term loans in low amounts are often called payday loans. This is because they are meant to “carry you over” in the times that you are short on cash.
When you’re looking to fund a big purchase for a small business
Small businesses are aware of the upfront costs that come with startups. For those who are not in business, the reality is that is not cheap to start any sort of mainstream business. For instance, the median cost to start up a restaurant is $275,000.These figures cannot be accomplished with the help of a short-term loan, and businesses know that. Often, this money goal is achieved with the help of investors, a bank loan, or just blood, sweat, and tears.
For those with established businesses, however, unexpected costs can come out of nowhere and during the worst times. If a small business needs a repair on a necessary element of their business but might not have all the money in their budget to fund this, this is when a short-term loan might come in handy.
When you do not have any willing investors to help you with a purchase
Then there are those with great ideas and no connections. Investors don’t just come out of thin air. Large businesses who are funded thousands of dollars and who obtain investors often know these people beforehand – and that is their collateral. It is harder for one-person ventures to find funding like this because they just don’t have the interpersonal collateral.
For smaller-scale entrepreneurs, there might be some worth in obtaining a short-term loan. Sometimes people have a big idea that they know will shake the world but don’t have the cash to make it happen. Short-term loans provide enough money without a credit check or bank application to fund smaller entrepreneurial purchases like materials to construct an invention, a down payment on a rental shop or airfare to pitch your invention to someone halfway across the country. In these cases, a short-term loan could be a huge return on investment down the line.
When you have collateral, like a car, that is worth a fair amount of money
Short-term loans are often perfect for those with less-than-average credit scores because they do not always require a credit score. Instead, loans like car title loans and payday loans ask for alternate pieces of collateral as payment terms. This allows you to borrow up to the estimated worth of your item and get you the cash that you need for whatever reason you might need it.
If you’ve got this type of collateral, make sure that you can make the payments on your loan. People are often tempted to take out loans on large purchases but neglect to consider a budget for your loan payments.
When crowdsourcing doesn’t work
Crowdsourcing platforms, like GoFundMe and Kickstarter have skyrocketed in the past decade. In fact, one study pointed out that 1 in 3 GoFundMe campaigns are focused on paying off medical care bills and a staggering $650 million dollars were raised on GoFundMe last year. These statistics make one thing very clear – that health care costs are much higher than they have been in the past and many people nationwide cannot afford the premiums associated with visiting a healthcare provider, causing them to need assistance with basic medical care. Healthcare aside, this also shows that millions more are being funneled into other personal ventures, like music albums, art projects, and trips around the world.
But sometimes, crowdsourcing is not the best answer for funding purchases that you can’t pay out of pocket. Crowdfunding is not a financially secure way to try and pay for more pressing things, like surgeries and medical bills because there is no guarantee that your campaign will ever reach its goal. In fact, statistics show that nearly 90% of those who try and raise money for a personal campaign do not ever meet their goal. In times when crowdsourcing doesn’t work, or in cases when it is very important for people to meet their fundraising goal, considering a short-term loan is a better route to go down.
There are many more reasons why you might need to take out a short-term loan, but in the end what it all comes down to is that each reason for needing monetary assistance is a personal reason and attempting to try something that lots of other people try, like GoFundMe campaigns, is not always the best answer. If you’re looking to fund your next purchase, consider a short-term loan in Midwest Title Loan’s Kansas City location. We will be able to help you determine the best financial path to take to get you to your goal.Read more
October 8, 2018
When is the Right Time to Get a Car Title Loan?
Unless you are fabulously wealthy, you’ve probably been in a situation where you’ve felt as though you had few financial options to work with. Broke, strapped for cash, or however you call it, being low on money can be extremely stressful for those who need to make payments. In fact, 80% of people in a current or recent financial crisis say that their financial status was the greatest cause of their stress. In cases where money is tight, and stress is high, taking out a car title loan can be a relief. As with all loans, car title loans do need to be repaid, however, there are fewer processes that the loan purchaser needs to go through, which can be a relief.
Is now the time for you to consider a car title loan?
Here are some scenarios that indicate it might be worth your while to speak to a lender about.
When you are looking to supplement your own money on a large purchase.
Car title loans aren’t just for people who aren’t well-off. People who are excellent financial planners also utilize car title loans to fund a large purchase that they might not have been able to complete otherwise. For instance, someone with an existing car that is lien-free might want to purchase a new car. The car could be theirs, but the down payment situation is less than favorable. They either don’t have enough to make a down payment, or the amount that they have will cause them to repay far more in the future. With a title loan on their existing car, they will be able to make a larger down payment on the car they’d like at the time that they want it. Then, when their current car’s loan payments are completed, they are free to sell the car for a greater ROI.
When you must make a large payment very soon and will not have the money by then.
Sometimes, big bills pop up. Last year, the CDC estimated that nearly 136.9 million people in the United States took a ride in an ambulance, and many of the people quoted in this statistic were repeat riders. Of those riders, those who had to be on basic life support only paid an average of $600 per ride. For those who needed advanced life support the average jumped up to $1000 and over. None of those riders were prepared to take an ambulance to the hospital, and probably many of them did not expect to be able to pay for the unexpected expense. This is only one type of unexpected expense, and millions of Americans experience one or more of these financial hardships each year.
When surprise expenses pop up in your life and you need the money quickly, title loans are excellent to take advantage of because they do not take the same application length as a non-title loan serviced through a bank or other financial lender.
When your credit score is too low to get a loan at a bank
Those who have applied for loans before know that it is a lengthy and time-consuming process that involves a hard look at your financial health. Credit scores are a reality that Americans struggle with daily. Experian estimates that at least 30% of the people in its database have low credit. They also make note that this percentage does not include those who have no credit, and no-credit can make an even larger impact on whether you can apply for a traditional loan.
The sad truth is, many of the people who apply for loans do need the cash to make basic purchases, or even to make payments on things they already own. If you are struggling to pay bills on time or need to fund a big purchase but have low credit, this is a perfect time to seek out a title loan lender. They will help you apply and use your car as collateral rather than your credit.
When you are facing a bankruptcy or foreclosure.
You heard us correctly. If you’re under extreme financial duress and unsure how you are going to fund purchases of basic necessities like food, clothing, and shelter, it can be worth it to take some of your last-remaining assets, like your car, and put them up as collateral to fund basic purchases. Keep in mind, this is a situation that is extremely hard to navigate, and even most title loan advisors will recommend that you do everything within your power to make money prior to working with big collateral like cars. However, if you have discussed this with your loan provider and feel confident that you can make payments on the loan even while filing bankruptcy, this could be a beneficial action to take that could keep your belly full in hard times.
When you have no title loans with any other company.
Everything you’ve heard about car title loans is true – you don’t need great credit to apply and you don’t need to wait days before you see the money. There are certain requirements that car title loan applicants must meet to receive their loan. The biggest one of these requirements is that there are no existing liens on your title. Liens might exist from your dealer for paying off your loan or they might exist from other car title owners. To take out a car title loan you must be the owner of the car, which makes sense in the end. We want what is best for the owner of the car and for the loan requester, and the only way that we can do that is by ensuring you are the owner.
Does one of these situations strike a chord with you? We understand, and we are ready to help you get the cash you need for whatever reason you might need it. For more information, stop by one of our stores in Kansas City, Gladstone, or St. Joseph, Missouri or one of our offices in Overland Park or Kansas City, Kansas. Midwest Title Loan looks forward to helping you.Read more