We are going to give you all the information that you will need to decide if a car title loan is right for you or not.All of our car title loans are done with no prepayment penalties. Not all lenders do this.Our average loan term is 36 months. We do not offer a 30-day title loan or roll over’s.
We make sure you can afford the title loan we are going to give you. So your income is a big approval factor for us. We will do a credit check. We have the best rates out there. We are a lot less expensive than the other lenders that are out there.We will give you up to 85% of your wholesale value of your car in the Kelly Blue Book.
We will tell you what your APR is. We will charge you a documentation fee. We will also pass along the fees from the DMV to you. We do not make up any fees.
If repossession does happen and we truly hope it does not, we will pass along the repo fee to you. We will try to get you reinstated on the title loan.
If we do have to sell your car at the auction and there is money after all f the expenses and loan balance, with interest has been paid, we will send you the extra money.
We do not profit from repossession and selling your car. The only way we make money is with the interest we charge you. We are unlike most title lenders. We are trying to help all of our clients.We hope that this article will be helpful to you and if you need any help with a car title loan, you will think of us first.
Applying for a Loan
Have you ever tried to get a loan to start a business, see yourself through school or to settle some other minor or major personal issues before or you just need some emergency cash?
If you have, how difficult was it? Pretty difficult I presume?
If the car you drive is yours and you are in need of cash, then you might want to consider a car title loan as an option for receiving the money you need quickly. There are companies across America, local companies, and online companies which offer car title loans.
There are many variations between title loan companies, Car title loans have taken a lot of heat over the last couple of years. Many in the media have claimed that the high-interest rates, when compared to long-term bank loans, is too much while some have a different orientation about this.
Almost anyone can find themselves in a situation where they need money immediately. If you do not have other options of borrowing money, a title loan can be a lifesaver. Sometimes, a title loan can provide funds quicker than a banking company. If you are in need of money, especially if you have less than perfect credit.
Unexpected emergencies can take you by surprise, and sometimes these can be quite costly. Whether you’re dealing with a substantial doctor’s bill or any other unexpected expense, a car title loan might be the answer.
If you’ve never applied for one of these loans, you’re probably wondering how to get a title loan. There are many companies that offer car title loans for which you can apply online or visit their physical offices.
Let’s look at what car title loan is all about, its benefits and the bad sides before we talk about how to get a good one.
So what is a car title loan? It is a type of secured loan where borrowers can use their car title as collateral. Basically, a potential borrower temporarily hands over the ownership of the car to the lender until the loan is paid back.
The lender will add their name to the title or pink slip as security.
That is an explanation of all you need to know to get a car title loan in a nutshell.
But we will expand more and tell you everything you need to know about how to get a good car title loan.
A title loan offers you cash from the lender, in return you sign over the title of your paid-for car to secure the loan. Typically, these loans are average 36 months loan term.There’s a credit check and only minimal income verification.
It sounds pretty straightforward, but borrowing from these places can lead to a repossession of your car and a whole lot of financial trouble if you do not make your monthly payments. The same as a traditional bank loan.
The Bad Side Of Car Title Loans
Car title loans have been lumped into the “predatory lending” category by many consumers. Non-profit organizations such as Consumer Federation of America (CFA) and the Center for Responsible Lending have issued detailed reports outlining some of the title loan issues that the public should be leery about.
One of the biggest issues with these loans is interest rates. Many people dislike credit card interest rates, which average between the mid to high teens for most Americans. Car title loan interest rates make complaining about credit rates seem ludicrous.
Car title lenders are in a different category than credit card companies or banks and work around usury laws. Thus, title loan lenders are able to charge triple-digit annual percentage rates (APRs). Yes, triple digits. It’s not an exaggeration to see 250% APR and higher on these car title loans and only a handful of states have passed strict laws that prohibit exorbitant percentage rates.
If you calculate the late fees and returned item fees from the traditional banks into APR it translates into over 1000%. All of the fees that banks hide and charge are even more expensive than title loans.
Even if your credit card company is charging you a high interest of 25% APR, it’s nothing compared to car title loans. But again you can get a few thousand dollars on the same day with a title loan, while your credit cards might already be at their limit.
So sometimes you will have to decide if the speed factor is worth it. Car title loans are expensive but they do give you the money you are looking for immediately, even with bad credit.
By federal law, title loan lenders have to disclose the interest rates in terms of the annual percentage. If you have to get a title loan, make sure they don’t just give you a quote for the monthly percentage rate, they have to give it to you as an APR. If they are unclear about the rates, which many can be, just know that a monthly rate of 25% is equivalent to a 300% APR.
In addition to high interest, these car title loans usually include a number of fees that add up quickly. These include processing fees, document fees, late fees, origination fees and lien fees.
Sometimes there is also a roadside assistance program that borrowers can purchase for another small fee. Some lenders have even gone so far as to make the roadside assistance mandatory. The cost of all these fees can be anywhere from $80 to $115, even for a $500 loan.
All of these fees are legal and repossession fees too. Lenders are allowed to charge you to repossess your vehicle.
As if high-interest rates and a mountain of fees weren’t enough, lenders also give borrowers the option of interest-only payments for a set period of time. In these cases, the loans are usually set up for a longer period of time (compared to the typical 30 days) and the borrower can pay the interest only on the loan.
These types of payments are called “balloon payments” where the borrower pays the interest on the loan each month and at the end of the term, they still owe the full amount of the loan.
Rolling over and repossession
If you think most of the people who take out these loans pay them back in full after one month, think again. Because of the high interest and the fact that these lenders cater to low-income borrowers, many people aren’t able to pay back their loans in the 30-day period. This is called “rolling over” the loan.
The terms of these loans are crafted to keep borrowers in a cycle of debt and bring customers either to the verge of repossession or to actual repossession. Not being able to pay off the initial loan and then renewing it the next month costs borrowers even more money in interest, on top of the original amount they have already borrowed.
Let’s talk about repossession for a minute. The CFA reported that of the people they interviewed in their 2004 study, 75% had to give the title loan lenders a copy of their car keys.
Some companies started the cars to see if they worked and took pictures of the vehicle even before a customer filled out the loan application.
A company based in Arizona said they have GPS systems installed on the cars so they can track the cars and shut them off remotely if they don’t receive payment on time. That may be an extreme case, but these lenders take a customer’s promissory signature very seriously. If you can’t pay, they will come looking for you and your car.
The concerns for having your car repossessed are obvious. How do you get to work, drop off the kids at school, pick up groceries or go out on the weekends without a car?
As if those scenarios weren’t bad enough, owning a car can be some people’s biggest financial asset. If the car is taken away, so goes the money it was worth.
Some states have laws that force the lenders to pay you the difference of the loan once a lender has repossessed and sold your car, but some don’t.
It is possible to default on the loan and not get any money back for your car, even if you only borrowed a few hundred dollars.
This occurs because car title loans are also not over-secured. Typically, the maximum amount most lenders will give you is 85 percent of what your car is actually worth.
However, if you can’t pay back the loan they will sell your car and return anything over what is owed. Some lenders won’t take possession of a vehicle but instead, take the customer to court for the money
. They then tack on court costs and finance charges on top of the existing loan amount.
For all the promise of getting a good amount for your troubles, we can clearly see that getting a title loan is not all roses. There are so many bumps in the road to acquiring a loan for whatever reason and many people usually do not get to see the light at the end of the tunnel.
Good Side Of Car Title Loans
However, when going for a car title loan there are other factors you have to consider to ensure you are not swindled or end up on the wrong side of the law. There are states in the US that do not allow this type of loan in any form, while there are others who do allow it.
The ones in the latter category, however, have different lending laws and regulations governing loan agents in their respective states.
Getting a car title loan sounds like a lot of work, considering there are so many places to choose from with different terms and conditions and the way they operate.
With the growth of the internet and the ease of having technology at the tips of our fingers, we expect those options to multiply over time.
When it comes to choosing a company from which to borrow money, there are a few tips you should consider before making an important financial decision.
The entire process is basically like entering a pawn shop. This is also why car title loans are sometimes referred to as a title pawn.
Unlike pawn shops, you get to continue driving your car. The approval process takes as little as 30 minutes. To apply for a title loan, you must be 18 or older and hold a lien-free car title with your name on it. You can apply for a loan online. After applying, you will be instructed to go to any of the branches for a visual inspection of your car.
The value of your car will be estimated, after which you could be given the money you need. The amount of money you are loaned depends on the value of the vehicle.
To get a car title loan, you must also have a reliable source of income. If you don’t have a job, disability, retirement, and unemployment income will all do, but it will depend on how much your income will support.
After knowing that to obtain a car title loan is not all that rosy, we ought to know the best option available and the right step to take in order to get the best car title loan available.
Below are some of the things you have to watch out for when going for a car title loan.
Consider how reputable the company is?
Car title loan lending is one of the most popular forms of non-traditional lending and you will find all sorts of options to consider. To make the decision less overwhelming, you should first consider, how reputable the company is. With the internet making it easy for companies to grow without having a physical building for lending, you should do some research into where they started.
Consider what the car title loan company is asking for?
When you start to shop around for car title loans, you should make sure not to get swept up in pay now, get paid later types of businesses. There are many non-traditional lenders who ask for a large fee upfront. Sometimes the title loan company won’t accept your application without some sort of fee paid, with NO guarantee that you will even get the loan. Why add the stress of having to pay for a loan application when you don’t even know if you will get the money?
Consider how quickly the car title loan payout is
Another tip to consider in your time of need is how quickly your potential lender can approve your loan. Many non-traditional lenders try to promise quick pay-outs, but you need to make sure that the title lender can get you the money you need as soon as possible.
Consider how safe your information will be
In our society’s current standing with technology and security, it is a good practice to investigate your future loan company and see how they can protect your information and identity. The more paperwork involved in getting your loan, the more information they are asking for, the more information you have made vulnerable.
Consider what kinds of tools the car title loan company offers
Some title loan companies don’t need you to apply in person because they don’t have a physical location. What if you don’t feel safe providing your personal information online? Or what if you have questions but don’t have time to go to a physical location? Can you always get help? Finding out what kinds of tools a non-traditional lender has is a good benefit for your needs. It makes the process easier and you can confidently borrow money, knowing that you have different options for applying for a car title loan.
Consider how the car title loan company’s terms fit your needs
Another helpful tip is how the company can work to fit your needs. Even though you are the one who is asking for help, you should have some standard of what your needs are. You should see if the company fits your needs in terms of lease length, amount and interest rates. Some companies suggest that you borrow more than you need, and they will entice you by saying you can always pay it off later, but they are not looking out for your best interest.
See if the car title loan has any hidden fees such as early repayment
You will find that other car title loan locations are not flexible in their repayment. This applies to both the ability to repay the loan and the terms of the repayment. For example, you might have a loan term of 12 months, so you might want to pay more and finish paying off the loan in ten months.
See how many repayment options the car title loan company have
Having a monetary crisis doesn’t have to be overwhelming. You need to be able to handle your business and get ahead. You might be able to find a title loan store near your office or place of work and if you aren’t prepared, it can become easy to be swept up by the convenience. If it’s the middle of winter, and the due date comes around, but you can’t make it to their store to make your payment on time, you can find yourself hit with an outrageous late fee. Maybe it’s the holidays, and you can’t find a location that’s open when you are available to make your payment. Another late fee. The most convenient location for making payments much closer than a store near your workplace or home. The most convenient location is your phone or a computer. These days, it’s hard not to find a phone to use.
Make sure you have a hassle-free way to get your car title back
One last tip that can be overlooked, is how quickly you will have your car back when getting a car title loan. Some companies require you to give them your vehicle but how can you make money if you can’t use your source of transportation?
For many people, it’s the only option when facing a financial difficulty. What makes car title loans so appealing is the fact that they offer much more money than a payday cash advance company. Being prepared before applying for a car title loan doesn’t have to be difficult. Having an idea of what you are getting into can be the best way to start your search.
So before you go apply for a car title loan, here are some of the simple steps and strategies you have to follow to help you avoid unnecessary pitfalls.
Know the payment options available to you
Before you go ahead to take out a title loan make inquiries to be sure about how the lender plans for you to repay the loan, either by direct payment or from your paycheck. Beyond this, you also need to find exactly how long your title loan will last.
Like any other loan, a longer repayment period translates to lower payments each month. However, the disadvantage here is that you are going to be paying more each month on finance charges, so do your best to ensure that your loan is outstanding for the shortest possible time.
Check if there is any prepayment penalty
When it comes to car title loans, there are times when paying off your loan early is a bad thing. If you obtain a loan with a term that is more than 30 days long, it will very likely come with an early repayment penalty attached to it. This means that if you come across some money and decide to pay off your loan a few months early, you will be penalized.
Lenders are looking for a way to make high profits from your dealings with them, so they design their loan packages such that they get to make as much interest as they can on the repayment. Paying off early means that you are saving yourself thousands in interest payments, which directly reduces the profit they make from the repayment.
Understand the online application and approval process
Some online title loan lenders will have an application process that takes place completely online, while some others might require further verification via phone call etc. Generally, it can take anywhere from 20 minutes or less to a few hours. This is more to save you time than anything else.
Also, you will do well to find out if the lender you are going for demands visual inspection of your car before releasing the loan amount. Most times this takes place when you go to pick up the check.
Find out what kind of cars the lender accepts
While some title loan lenders will only accept cars that were manufactured in the year 2000 or later, some others will accept cars manufactured as far back as 1995.
Many times, the mileage of your vehicle can also come into play here. If the mileage of your car is greater than 100k or close to it, it is best to find out from the lender their mileage restriction. It is best to do this before you even begin to fill out any form of any kind from the lender.
Make sure the lender has the license to operate in your state
Like I said earlier, there are regulations that determine the requirements for an online car title lender to be registered and these regulations vary from state to state. If a lender is not registered in your state then they will not be able to offer you an online car title loan – unless of course, you feel like serving some time.
Because of the popularity of this kind of loan, this might seem a little hard to believe, what with the numerous online car title loan lenders that exist. So make sure to check your state’s eligibility before you apply.
Be sure that you get to keep driving your car
This might seem incredulous considering the fact that almost every car title loan lender will let you keep driving your car after you have accessed the loan. However, every now and again you will likely meet a lender that requires your car to be impounded with them for the life of your loan. Some others might let you drive your car but put a tracking device on it to monitor your every move as said earlier. Granted, this is becoming less common but make sure as car title loans gain more popularity and acceptance. Still, when applying for a car title loan with any lender, make sure that they will let you keep your car.
Ask How Interest is Calculated and Check for Prepayment Penalties
Whether you choose to borrow money from a bank, credit union or dealer, you should ask whether you can pay off the debt early without paying a penalty. The answer to this question will depend on how the lender calculated the interest on the loan and whether the terms include a pre-payment penalty.
If the terms of your loan call for simple interest, you only pay interest on the balance of the loan. So the faster you pay it off, the less interest you pay. However, if the terms of the loan ask for pre-computed interest, then the interest you pay on the loan is fixed, regardless of whether you pay it off early or not. Loans with pre-computed interest may offer a rebate for a portion of the interest you paid, but not all of it. Loans with simple interest may charge a pre-payment penalty or fee to customers who pay the loan off early. When negotiating the terms of the loan, try to get a simple interest loan with no prepayment penalty.
These are some of the steps and strategies you should endeavor to follow to make sure you have a hassle-free car title loan processing.
We hope that this article has been helpful. We have been doing car title loans since 1994. We are a well-established car title loan company, with a lot of experience. We disclose our interest rate upfront to you. We will offer you the most money, more than the competition.
We will offer you the best interest rate and beat the competition’s rates easily. We will do our very best to get you the money that you qualify for on the same day as your application. We do not profit from repossession or selling your car. We offer long-term title loans. Our range can go from 12 months to 48 months. We do not do any roll over’s.
We do not have any hidden fees. We disclose all of our fees up front. We do run credit checks but we are an asset-based lender so we work with bad credit all of the time.Your bad credit will not stop us from lending to you on your title.
Contact us today at 844 242 7467 or you can apply with us online.