Mississippi is known for its iconic music, rich history, and delicious cuisine. It’s also one of the few states in the U.S. where you can get access to a quick injection of cash to pay off sudden medical expenses or pending bills, courtesy of a title loan.
All residents of the Magnolia state are eligible for this type of secured loan, provided they have a lien-free car title.
What is a title loan?
A title loan is a type of loan where an individual can borrow money using their vehicle as collateral. With a title-secured loan, the borrower provides the lender with the title of their vehicle as temporary security.
Once the loan is obtained, the borrower is responsible for repaying the amount within a specified timeframe, including any additional fees or interest charges. If the borrower is unable to repay the loan as agreed, the lender may have the authority to take possession of the vehicle.
Mississippi title loan requirements
To qualify for a car title loan in Mississippi, you'll need to the following:
- A Mississippi driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in Mississippi
- A running vehicle
You must also be over 18 years of age and not an active-duty service member of the United States military.
The title loan process
Once this is in order, you can apply for a title loan. Here’s how it works in Mississippi:
First, you'll need to complete an online form detailing some information about you and your vehicle. This allows us to determine where in the state you reside and assess whether you’re eligible.
We will then verify your documents, including proof of residence in Mississippi, income details, and your lien-free car title.
An inspector will assess how much money you can borrow based on your car's interior and exterior condition, as well as certain factors like the make and mileage.
You will then be asked to sign an agreement with the lender. This document will detail all conditions related to the loan, including a predetermined payment schedule, fees, and interest rates, which in Mississippi is capped at 25%.
Once you've accepted and signed the agreement, your lender will begin the disbursement process. Depending on the disbursement option you choose, you can get the funds in your hand in as little as 2 hours.
Per the conditions stipulated in your agreement, you will be expected to repay the loan by the due date. The minimum term is 30 days, but the maximum repayment date depends on the agreement you sign.
How title loans are regulated in Mississippi
Title loans in Mississippi are currently regulated under the Mississippi Title Pledge Act
The state of Mississippi limits the interest rates of title loans at 25%, which works out to an annual percentage yield of 300%.
The maximum amount of money you can borrow is capped at $2,500. The length of a title loan term is 30 days. If you're unable to repay the loan, you can extend your loan for another 30 days in what is known as a rollover.
Mississippi law does not prevent the lender from repossessing your car if you fail to pay back the loan. However, it gives the borrower a right to cure, a 30-day extension period, during which you can catch up on your payments before your car is repossessed.
Cost considerations and title loan alternatives
The cost of a title loan in Mississippi 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 $2,500 at an APR of 300% and pay it back in 30 days.
If you took out a $2,500 loan and paid it back in 30 days, you would pay a total of $3,125 back to your lender in 1 payment. In this example, you’re paying $625 in finance charges to borrow $2,500.
- Example 2: You borrow $2,500 at an APR of 300% and pay it back in 6 months.
If you borrowed $2,500 and paid it back in 6 months, you would pay a total of $5,082.30 back to your lender in 6 payments of $847.05. In this example, you’re paying $2,582.30 in finance charges to borrow $2,500.
Personal installment loans: A better and more affordable way to borrow money with bad credit
If you're in Mississippi and looking for an alternative to title loans, you might want to check out installment loans. They're a different kind of borrowing option that could be more suitable for you.
Instead of using your vehicle as collateral, installment loans allow you to borrow money and repay it in monthly installments over a specific period. The best part is that the payments are fixed, so you can plan your budget accordingly.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding Mississippi title loans.
Can I qualify for a title loan with bad credit?
Yes! Your credit score is irrelevant when applying for a title loan. All you need to apply for one in Mississippi is a lien-free car title.
Can I get a title loan completely online with no credit check and no inspection?
Yes! You can get a title loan online without leaving your home or checking your credit. However, without a proper vehicle inspection, a lender will not be able to assess how much money you can borrow
Will I receive the funds from my title loan instantly?
In Mississippi, it’s possible to receive the funds on the same day if you finish the application process and have all your documents ready for inspection.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in Mississippi, including:
- Bay St. Louis
- Horn Lake
- Long Beach
- Moss Point
- New Albany
- Ocean Springs
- Olive Branch
- West Point
- Yazoo City