Missourians who own a car are spoilt for choice when it comes to gorgeous locations to visit. From monuments like the Gateway Arch to sprawling parks and mountain ranges, the state has it all. But that’s not the only benefit of owning a car in Missouri.
It also gives you access to a title loan — a type of secured loan that allows you to borrow some money quickly in an emergency. A title loan only requires a lien-free car title as collateral and is accessible to all residents of the “Show-Me” state.
What is a title loan?
Title loans are short-term collateral loans that use the title of your vehicle as security. In other words, in exchange for quick cash, a lender will keep your vehicle's title until you fully repay the loan. However, you can keep driving your car during the life of the loan.
While there are many advantages of title loans, such as the ability to borrow large sums without having to check your credit, there are some risks. Mainly, title loans are high-interest loans that are typically repaid in one lump-sum. If you fail to repay your title loan, you risk losing ownership to your vehicle.
Learn: Can you get a title loan with bad credit?
Missouri title loan requirements
If you're ready to move forward with a title loan in Missouri, you'll need the following:
- A Missouri driver's license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in Missouri
- A running vehicle
Learn: Can I get a title loan without the title?
Note: You must be at least 18 years of age and not on active-duty in the U.S. military.
The title loan process
Once this is in order, you can apply for a title loan. Here’s how it works:
1. Application
First, fill out an online form offering information about yourself and your vehicle. This will let us determine where in the state you live, how to get in touch with you, and whether you’re eligible.
2. Verification
The lender will verify your documents, including proof of residence in Missouri, income, and lien-free car title.
3. Inspection
The next step is to inspect the vehicle. An inspector will be sent to assess the interior and the exterior of the car, with a focus on the car’s make, as well as its odometer and engine, to assess how much money you can borrow.
Learn: Can you get a title loan with a damaged car?
4. Agreement
The next step is to inspect the vehicle. An inspector will be sent to assess the interior and the exterior of the car, with a focus on the car’s make, as well as its odometer and engine, to assess how much money you can borrow.
5. Disbursement
Once you’ve signed the agreement, the lender will deposit your funds into your bank account or send you cash through a third-party service like MoneyGram. The disbursement process usually is usually completed the same day unless you're approved after 2pm on a Friday.
Learn: Can you get a title loan without a bank account?
6. Repayment
Finally, you'll be expected to repay your loan according the payment schedule outlined in your loan agreement. Once you've completely paid off your loan principal and fees, you'll receive your title back from the lender.
Learn: What happens if you don’t pay a title loan back?
How title loans are regulated in Missouri
Title loans in Missouri are currently regulated under Missouri Revised Statutes § 367.500 et seq.
Interest rates
The state of Missouri does not cap the interest rates set by lenders. If you aren’t careful, you could end up paying as much as 300% of your loan amount as interest in a year.
Payment terms
The maximum amount for a title loan is capped at $5,000, while the minimum term is 30 days, the period most lenders will set for repayment. If you fail to repay your loan on time, you can roll over the due date but will be expected to pay the interest owed and 10% of the principal amount.
Repossession laws
In Missouri, title lenders must provide adequate notice before taking your car’s title. Lenders must send several notices and warnings, giving you up to 30 days to catch up and make your payments.
After this period, the lender can notify you that they plan to sell your vehicle. If the amount they make from this sale exceeds what you borrowed, they must pay you the surplus. If it’s less, you will owe them the difference.
Cost considerations and title loan alternatives
The cost of a title loan in Missouri is dependent on your loan amount and your APR. Here are a few examples to help illustrate the true cost of a title loan.
- Example 1: You borrow $1,000 at an APR of 300% and pay it back in 30 days.
If you took out a $1,000 loan and paid it back in 30 days, you would pay a total of $1,250 back to your lender in 1 payment. In this example, you’re paying $250 in finance charges to borrow $1,000. - Example 2: You borrow $1,000 at an APR of 300% and pay it back in 6 months.
If you borrowed $1,000 and paid it back in 6 months, you would pay a total of $2,032.92 back to your lender in 6 payments of $338.82. In this example, you’re paying $1,032.92 in finance charges to borrow $1,000.
Personal installment loans: A better and more affordable way to borrow money with bad credit
Given that there is no cap on interest in Missouri and that repayment laws don’t tend to favor the borrower, a title loan is best taken out only in cases of an emergency.
An installment loan for bad credit is a popular alternative for those who don’t have a car title or are wary of high interest rates. This small loan isn’t so reliant on credit score and lets you pay back the money you owe in simple and easy-to-manage installments.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding Missouri title loans.
Can I qualify for a title loan with bad credit?
Yes! In Missouri, all you need to put up as collateral is a lien-free car title. So credit score doesn’t matter to most lenders.
Can I get a title loan completely online with no credit check and no inspection?
Yes! You can easily apply for a title loan from the convenience of your home. However, vehicle inspections are required.
Will I receive the funds from my title loan instantly?
In Missouri, you can get access to funds on the same day if you finish the application process before 2 pm. If it’s after, you will receive it on the following business day.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in Missouri, including:
- Arnold
- Ballwin
- Belton
- Blue Springs
- Cape Girardeau
- Chesterfield
- Columbia
- Creve Coeur
- Farmington
- Ferguson
- Florissant
- Gladstone
- Grandview
- Hannibal
- Hazelwood
- Independence
- Jefferson City
- Joplin
- Kansas City
- Kirksville
- Kirkwood
- Lee's Summit
- Liberty
- Manchester
- Maryland Heights
- Nixa
- O'Fallon
- Ozark
- Poplar Bluff
- Raymore
- Raytown
- Rolla
- Sedalia
- Springfield
- St. Charles
- St. Joseph
- St. Louis
- St. Peters
- University City
- Warrensburg
- Webster Groves
- Wentzville
- Wildwood
