Title loans are widely available throughout the state of Missouri. This borrowing transaction is ideal for people who need quick access to cash and have imperfect credit.
According to the Missouri's loan records, car title loans are the most popular type of title loan. These loans are based upon vehicle value, so credit history is not a factor in the approval process. Thus, the approval process is very quick. Most borrowers receive their funds within as little as 24 hours.
Individuals who need to address a pressing financial need will benefit from the speedy service. Unlike traditional loans from a bank or credit union, a title loan can be obtained by satisfying a minimal amount of requirements.
Each lender will ask for varying forms of documentation, but the universal set of requirements include:
Missouri residents have used their title loan funds for a variety of reasons. After all, the borrower has the right to use the money in whatever manner they choose once the loan is finalized.
As mentioned before, many people have an unexpected expense that needs to be paid as soon as possible. Not surprisingly, the urgency of a situation typically motivates individuals to seek out a secure fast cash option.
Title loans are a safer choice than pawning an asset because a borrower will retain possession of his or her property throughout the entire loan period. For example, if someone applies for a title loan, he or she will be able to drive his or her car while making payments. In a pawn situation, the borrower may be required to hand over their valuable asset.
In fact, Missouri law prohibits title lenders from using terms such as "pawn"or "pawnbroker". The nonuse of this terminology provides a clear distinction between the two situations and does not confuse potential borrowers.
The Department of Insurance, Financial Institutions & Professional Registration governs title loans in Missouri. The rules and regulations fall under the Division of Finance and are included in the consumer credit laws.
Title loans have the reputation of having extremely high interest rates. Missouri residents should be cognizant of this fact because the state currently allows title lending at triple-digit rates.
In actuality, there is no limit to the amount of interest a lender can charge. Some borrowers have found themselves in a tight situation when applying for a loan because they are unable to afford the monthly payments. Therefore, it is important for the consumer to do his or her due diligence and find a lender that offers a fair set of terms.
Missouri law states that a loan amount cannot exceed $5,000. In other words, even if a borrower's asset is worth more than this figure, he or she can only receive a maximum of $5,000. If the borrower cannot fully repay the loan within the timeframe of the initial payment period, he or she has the option of renewing the loan agreement. The borrower must pay any interest due at the time of the renewal.
However, upon the third renewal of any title loan agreement, and any subsequent renewal, the borrower must reduce the principle by ten percent until the loan is paid in full.
The state allows various types of personal property to be used as collateral. However, a borrower may not use a RV as the pledged asset.
Overall, a title loan can be a reliable way to obtain money when emergencies arise.
For additional information regarding the accepted practices within the state of Missouri, consult the following website: http://finance.mo.gov/Contribute%20Documents/ConsumerCreditLawBook.pdf
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