myths about title loans

Debunking Common Myths About Title Loans

There are many misconceptions and myths about title loans out there, which often may scare away a potential borrower. It’s a pity since title loans can help you out when you need quick cash for emergency expenses. Here are the most common myths about title loans you might have come across.

Common Myths About Title Loans You Shouldn’t Believe

1. You Can Automatically Get Approved For A Title Loan

While it certainly may seem so due to their accessibility – there is no guarantee you’ll get approved. Just like with any kind of loan, there are requirements and a process you have to follow – albeit an easy process at Mississippi Title Loans, Inc. to get through.

Part of our requirements are required items you will need to provide. Those items include your driver’s license or valid state-issued ID to verify your identity and legal age, your lien-free car title proving your ownership, and your vehicle for inspection to determine how much you could qualify for. So no, not everyone can get one – but any car owner of legal age certainly has a chance.

2. Getting A Title Loan Means Never-Ending Debt

Another of our common myths about title loans is the never-ending debt you get with a title loan. The chances of getting stuck in a never-ending debt cycle with a title loan are the same as with any other loan. That is why you have to make sure you really cannot handle your emergency expenses alone.

You will have to abide by the terms of your loan and make timely payments – and the loan will be gone in due time. If you do run into problems paying, come talk to us and we will see what we can do.

3. Title Loans Just Bring Down Your Credit

This is a big one of our myths about title loans. The truth about credit and this loan is the title loan won’t affect your credit score at all.

Mississippi Title Loans, Inc. never discloses its loan information to any credit bureaus – and without the credit bureaus’ involvement, the loan cannot affect your credit history. You can rest assured your title loan information will remain entirely with us, never going onto a credit report.

4. Title Loans Come With Hidden Fees

Another one of our myths about title loans is hidden fees. The good thing about our title loan process is that we will sit you down and go over the loan terms – including loan fees – in detail. This means you will know exactly what to expect. There is nothing hidden here. Read what your agreement says and ask the loan representative you’ll be working with any questions you have before you sign.

 

title loan myths

 

5. Title Loans Target Those Who Don’t Fully Understand Them

Title loans don’t target anyone – other than car owners of legal age – the terms and conditions are the same for all potential borrowers.

Rather, often title loans are an option people from disadvantaged communities can turn to – especially if they need a larger sum – because they can’t qualify for a loan with a traditional financial institution.

Title loans are accessible for people with bad credit, unemployed, and who need cash right away. Traditional bank loans? Not so much. This often leaves people from disadvantaged backgrounds with no choice at all.

6. You Have To Give Us Your Vehicle When You Get Title Loans

This is definitely a really common myth about title loans. This loan is called a “car title loan” and that means we are using your title as collateral. We are keeping your title with us while you repay the loan, not the vehicle itself. You can keep using your vehicle as you see fit as long as you are keeping up with the repayments.

How To Get A Mississippi Title Loan

If debunking myths about title loans helped with your fears and you’ve decided to get a title loan, make sure to get the required items in order, before starting the application process. Again, you’ll need:

  • A valid state-issued ID or driver’s license, proving you’re over 18;
  • Your car for inspection;
  • Your car’s lien-free title in your name.

After getting everything in order, you can just fill out and submit an online form on the website, and wait for the loan representative to get in touch with you. The loan representative will provide further instructions and answer any questions you might have.

Take the required items to the meeting the loan representative schedules for you either at a location of your choice or at the nearest title loan location. They’ll need to inspect everything to determine if you qualify for the loan, and what the terms of your loan should be. If they approve you – you could get up to $2,500 the same day.

Forget These Common Myths About Title Loans And Get One Today

These common myths about title loans can lead any of us away from these loans. But when you are in a tight bind and you’ve exhausted your other options, it is nice to know you still have title loans to turn to. Forget these myths and apply for them today. Fill out our online form when you are ready.

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

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.