Although Kansas’s state economy is gradually expanding, 13.6% of its citizens continue to live below the poverty level. The current unemployment rate is 4%. Low income and little savings can become severe issues when unforeseen circumstances emerge. To address their financial issues, many Kansas citizens look to quick and simple answers. A car title loan is one of these solutions.
Kansas title loans are simpler to qualify for than regular loans. The application process does not include a credit check. There is no requirement to have a high credit score because the vehicle is utilized as collateral. The good news is that debtors can continue driving their cars because they get to keep them.
Title loan in Kansas Definition
A short-term loan known as an auto title loan uses the title of your car as security. Repayment is typically due in 30 days, but can be postponed with an installment plan if necessary. There is no credit check required. The amount that can be borrowed from you will depend on how much your car is worth.
Since they do not require a credit check and are typically completed much more quickly than regular bank loans, car title loans make excellent alternatives to those loans. Interest rates are lower than those for unsecured loans, and there are less restrictions on income, employment, and supporting documents.
Any equipment used for transportation on public highways, including automobiles, trucks, recreational vehicles (RVs), and motorbikes, is permitted under Kansas title loan legislation. In order to reduce risk for title lenders when approving loans, collateral must be provided. Because loans are secured in some cases, lenders can also achieve more affordable interest rates.
Kansas’s requirements for title loans
Each title lender may have their own specific restrictions for automobile title loans in Kansas, such as the ones in the examples below. The majority of lenders, including Katie Raines Loans, demand that you be of legal age to engage into contracts, own a car, have a source of income, and have no liens on the vehicle you want to use as collateral.
- a car title that shows you as the owner.
- a state identity card or your driver’s license can serve as proof that you are at least 18 years old.
- the registration card for the car.
- a clear title demonstrating that the car is free of liens. If there is only a modest amount left on the car loan, some lenders will accept titles.
- evidence of car insurance.
- a utility bill to prove your state of residence
- a recent paystub or other evidence of income attesting to your ability to pay back the loan in full.
- references. Before issuing loans, many title lenders need at least two or more references.
- a set of automobile keys for the collateralized vehicle.
- vehicle examination. Some lenders could ask you to provide your car for a quick inspection to make sure it complies with collateral requirements.
Benefits of title loans for Kansans
Many lenders offer borrowers a useful service. Funds can be granted in a matter of days provided the borrower can present a Kansas state-issued ID, evidence of a consistent source of income, and a free and clear title to their vehicle. Additionally, borrowers are not required to physically visit a site to pick up the funding. The majority of lenders quickly and easily transfer the loan revenues into their bank accounts.
Given their financial situation, Kansas people may find it impossible to repay a loan due to financial difficulties. Borrowers don’t need to be concerned about this. Lenders frequently increase payments or renew loans. In times of need, Kansas people may think about title loans due to all of these advantages and benefits.
Title Loan Laws in Kansas
Many states forbid title lenders from operating there. If states permit title loans, each one may set its own rules, which lenders must follow in order to operate legally there. Kansas has restrictions in place to safeguard consumer rights when it comes to title loans. Laws governing title loans KS prohibit lenders from requesting borrowers to provide any other sorts of collateral outside the car serving as the loan’s security.
The Bottom Line
Compared to other standard loan kinds, car title loans may require less documentation and are simpler to obtain. However, you are still liable for paying back the loan sum because you signed a contract. While title loans may initially appear to be a simple way to solve your money issues, you are still liable for the principal, fees, and interest.
Prospective borrowers who are thinking about taking out a title loan should carefully examine the details of their legal agreement. Make sure you are confident in your ability to pay back the loan by the due date. Because they don’t make their payments, some borrowers who take out automobile title loans frequently get into financial problems.