Title loan stores are exploding in popularity throughout Mississippi, popping up left and right. If I didn’t know any better, I would speculate that there are more stores selling car title loans than there are mud pies (I’m exaggerating). However, from Biloxi to Jackson, title companies are buying up old fast food joints and turning them into loan centers.
When the stock market crashed in 2008, everyone was hit hard. Being ranked the poorest state in America, Mississippi was hit the hardest. With more than 20.6% of the population living in poverty before the recession, the housing crash made things worse for Mississippians everywhere. Even though the economy has been roaring back as of late, the truth of the matter is Mississippi still remains the poorest state. It’s no wonder why many of its residents are turning to short-term loans.
As with any demand in the market, supply will follow. Title loan giants like TitleMax, LoanMax, and Mississippi Title Loans, Inc have answered the call. New websites like titlelo.com are making online titles loans in Mississippi even easier to attain. However, what makes these types of loans so popular? Here are the top five reasons why I think they are popular.
Title Loans Provide Quick Financing
The best thing about title loans seems to be their ability to provide most borrowers with almost immediate and instant access to the capital. When you need cash fast, without any headache or hassle, auto equity loans trump all other forms of financing.
These loans are established to “fast-track” the process as much as possible. You can literally walk-out of a TitleMax with money in less than 30 minutes; try that at Bank of America. Installment loans, which are another form of short-term financing, can take up to 72 hours before you’re approved to receive your funds in your account.
You Can Get Approved With Bad Credit
Because auto title loans require you to put up your title as collateral, your credit score plays less of a role in the approval process. Getting a loan with bad credit is great news for Mississippians who tarnished their credit during the recession. In fact, “no credit checks” is one of the most common selling points for lenders when I searched for Mississippi title loans online. However, lenders do require borrowers to have proof of income.
Loans Terms Are Flexible
The overwhelming majority of professional title loan companies in Mississippi are going to be quite flexible when it comes to the repayment of the loans that you take out with their service. You’ll be able to work with your loan officer to find a payment schedule that works for you, flexible enough to meet your needs while at the same time getting cash back in the hands of those that are lending it to you.
You Can Borrow Up to $2,500
According to Mississippi title loan laws, lenders are permitted to loan up to $2,500 to borrowers. When compared to payday loans that usually range from $250 – $500, auto equity loans can provide relief for bigger obligations like mortgage payments, hospital bills, or even roof repair. Unfortunately, anything more than the limit would be illegal. As a matter of fact, the state even caps the interest rate that lenders are able to charge borrowers to 25%.
You Don’t Have to Deal with Banks
Everyone hates the banks. I could argue that the banks were responsible for the market crash that put most Americans in poverty. Aside from my personal political views, banks are a pain to deal with. Borrowers have to jump over hurdles to meet the requirements for a loan. If an applicant doesn’t satisfy one criterion on their list, off to the next one. In contrast, title lenders make the process easier. More often than not, they are willing to amend or bend the requirements to help you qualify.
A Word of Warning about Mississippi Title Loans
Yes, it’s true. Everyone loves fast money and with title loans, money couldn’t drop into your hands any quicker. However, these loans are an expensive form of credit. I wouldn’t recommend them to any borrower in Mississippi unless it was their very last option. According to Pew Charitable Trust, many borrowers lose their car to repossession, causing them to lose the only form of transportation they have. So before you apply for a title loan in Mississippi, make sure you’re able to pay it off quick or you’ll end up paying for it five times over.