December 21, 2018
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.