When Does A Title Loan Make Sense For A Short Term Cash Emergency?

With a title loan, you can access up to $15,000 to cover your emergency ASAP, and we at Missouri Title Loans, Inc. would be happy to help you with that. However, taking out a loan is not a one-size-fits-all solution. There can be situations in life when opting for such a borrowing option simply won’t be worth it.

In this guide, we will explain when to use a title loan. We will review how title loans can help with a short-term cash emergency in Missouri and go over a few situations where borrowing emergency cash is essential. Learn about these emergency situations and how to get a title loan below.

When Can An Emergency Title Loan Help You?

You should go for emergency loans if you’re dealing with an emergency that needs to be taken care of as soon as possible. You should only borrow money when faced with a financial emergency that cannot wait and when you don’t have any other options.

Title loans should be considered last resort options for emergency expenses, not extra cash for nonessentials. You should never use a title loan for frivolous purchases, such as new clothes, a new phone, or funding a vacation. However, they can help you pay important bills that can’t wait for you to save.

The following are a few financial emergencies you can use a title loan for:

• Overdue bills – There may be circumstances outside of your control that led you to not have enough money for your bills. For example, you may have fallen ill and missed time from your work. Without PTO time, you may not be able to afford your rent/mortgage, utility bills, student loan payments, or credit card bill. A title loan can help you get fast cash within one business day to pay these bills before incurring late fees or lowered credit.
• Medical expenses – If you don’t have enough money at the moment to pay for an important health treatment, then a title loan might help you take good care of your health. Your insurance may cover a large portion of the cost, but you’ll still have to afford the deductible. The money from a title loan can help you pay for the cost of hospitalization, surgery, physical therapy, medication, and medical equipment.
• Important house repairs – Not every house repair can be classified as an ‘emergency.’ There are plenty of inconveniences that can easily wait until you receive your next paycheck or manage to save up. However, there can also be situations when a delay might actually put your health and safety at risk. Electrical hazards, plumbing issues, and no heat in winter are the types of emergencies for which a title loan can be used.
• Auto repairs – Most people require a car to commute to work, school, and other important locations during their busy week. Issues with your car can prevent you from getting where you need to go. Leaving issues unaddressed can also expose you and others on the road to danger. You can pay for auto repairs, including fixing broken windows, repairing electrical issues, and replacing faulty parts, to ensure you can drive safely.
• Vet bills – Some pet owners may have vet insurance to cover emergency visits, but others may not feel it's worth it for a healthy pet. However, emergency situations can arise with your pet, and you could incur thousands of out-of-pocket costs. Pay for blood work, surgery, diagnostic imaging, and medical treatment with title loans for veterinarian bills.
• Unexpected travel expenses – You wouldn’t want to borrow money to be able to go on a vacation, but there can be cases when traveling becomes a necessity. At one point, you might have to visit your loved one in a hospital or attend someone’s funeral. The money from the title loan can be used to buy plane or train tickets, rental cars, and to fund your accommodation while you’re staying in another city or state.

When thinking about getting an emergency title loan, ask yourself this question: Can this financial emergency wait? If you can’t wait to save, a title loan is a great option. If you can wait a few weeks, you’re better off saving money to handle the cost. Below, we’ll explain more about when to use a title loan.

When Does Going For A Title Loan Financially Make Sense?

Imagine you’re in the middle of a real emergency and considering taking out a loan. The next question you should ask yourself is whether you’d be able to afford the additional debt. No matter how urgent your situation, if you won’t be able to pay off the loan within the agreed-upon timeframe, you might end up making things even worse.

To assess if your debt is manageable financially, add all your monthly debt payments, divide this total by your overall income, and then multiply by 100. This gives you your debt-to-income ratio. Ideally, it should be under 30%. However, some can sometimes extend up to 43-50% while staying current with payments. Any ratio exceeding this range is considered risky, as it may leave insufficient funds for your essential expenses.

If, after adding the title loan payment to the overall loan payments, you have found out that your debt-to-income ratio is too high, it would be better to consider other options. If you feel you can afford it, continue reading on to learn about the requirements for Missouri title loans.

Requirements For Title Loans In Missouri

Though the process of taking out a title loan is simple and quick, there are still a few important requirements that you would have to meet. Thankfully, you will only need three items that you should be able to find at home. We keep our requirements simple to allow for quicker approval when borrowers are faced with an urgent emergency.

Make sure that you have these three required items for title loans:

• A state-issued photo ID – Borrowing any loan in Missouri requires you to prove you’re at least 18 years old. You can prove your age using any state ID that displays your full name, date of birth, and portrait photograph. This can include your driver’s license, passport, Missouri state ID, or student ID card.
• A lien-free vehicle title – Only a lien-free title can be used to secure the loan. If you’re still making payments on your vehicle, you will be declined. Also, it is important to make sure that the title has your name on it. You cannot use someone else’s vehicle title. If it is in someone else’s name, you’ll have to get a title transfer before applying.
• Your vehicle for inspection – During the in-person meeting, the verification agent will have a look at your car, truck, or van to determine its value. The loan amount would depend mainly on your vehicle’s age, make, model, condition, mileage, service history, and modifications. The more your car is worth, the more you can borrow.

A good credit score is not required to take out a title loan. As the loan is secured by collateral, lenders might be willing to work with borrowers who have low or non-existent credit. Learn how to get approved for a title loan for a short-term cash emergency in Missouri below.

How To Get A Title Loan In Missouri

With Missouri Title Loans, Inc., you can qualify for up to $15,000 in only 30 minutes. If you’re facing a true emergency and you understand that managing your loan payments won’t be a problem for you, our representatives would be happy to help you find financial relief. You can begin the process online with our quick inquiry form, then visit us in person for same-day approval.

Here are the steps involved in getting a title loan in Missouri:

• Submit your information through our online title loan form
• Answer our phone call to discuss how title loans work
• Bring your required items to the nearest Missouri store branch for verification
• Have your car, truck, or van inspected for its value
• If approved, sign the loan agreement to complete the process
• Receive your fast emergency cash later that day or by the next business day

Apply For Title Loans For Emergency Expenses – Borrow Up To $15,000 Today!

We at Missouri Title Loans, Inc. understand how frustrating dealing with an emergency expense can be. Taking out a title loan with us is easy. If you’re over 18 and own a car outright, you can use the vehicle’s title to access up to $15,000 as soon as the same or the following business day.

Fill out the online title loan form now and address your emergency as quickly as possible!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.