Kansas City car title loans are short-term loans designed to help you through an emergency. While a title loan does not require excellent credit, there are some requirements to meet to be approved. There are also factors that determine how much you qualify for, including the value of your vehicle and your ability to repay. Despite this, title loans tend to be very straight-forward, allowing you to receive your funds in as little as one to two business days.
How a Title Loan Works
A Kansas City car title loan is very basic. After applying online or in-person, you will need to provide basic documentation to verify your information, including the value and condition of your vehicle. Your loan will then be processed. If the loan is approved, the title loan provider will hold title to your vehicle until the loan is paid off. As a borrower, you continue driving the vehicle while you pay off the loan. Once your loan is paid in full, your title will be returned.
Is Good Credit Required?
Good credit is not required to be approved for a title loan. In fact, lenders will not even check your credit. Instead, your income will be considered to determine how much you are comfortable repaying each month. This is one factor that determines the maximum you can borrow. You can still qualify for a loan if you are retired or on disability, assuming you have some source of income such as a pension or disability benefits.
Does the Vehicle Need to Be Paid Off?
If you own your SUV, truck, van, or car in full and it is less than 10 years old, it can be used to secure a title loan. Still, your vehicle does not necessarily need to be paid off to qualify for a title loan. If you have just a few payments left or significant equity in the vehicle, the lender can work with your dealership, bank, or credit union to pay off your remaining balance from your loan proceeds. You will receive the additional funds.
The amount you can borrow against your vehicle is based on your vehicle’s value and how much equity you have.
If you are considering a Kansas City car title loan, keep in mind that not all title loan providers are equal. For example,some lenders charge pre-payment penalties that are designed to keep you in debt and penalize you for being responsible and paying off your loan early. Compare loan terms carefully and choose a responsible lender like Waldo Financial to make sure your car title loan is affordable and free of hidden charges.