Most people know the idea of a loan, but there are many other options than just traditional loans… one of them being a car title loan, but some might ask how do title loans work?
First of all, what is a title loan? How to get a title loan? How do title loans work?
Great Question – a car title loan is an arrangement in which the owner of a car leverages the equity within their vehicle to secure a cash loan.
We will explain how to get a title loan with the equity of your vehicle and how do title loans work.
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Car title loans are an excellent way to enable borrowers with no or bad credit to get cash fast using their vehicle title as collateral. That way, they can collect urgent money to cover their emergency needs and perhaps even get back on track with their debts.
Whether you wish to pay your long due utility surcharge, accident, medical emergency, or another type of expense, you need instant cash. Borrowing from a bank, in this case, may not be an option, given the painstaking haul of processes that could get you money long after you need it. Plus, you may not even qualify for a bank loan due to bad credit scores.
This is where auto title loans come into play, providing a handy solution to your dire monetary needs.
With a title loan, the value of your vehicle dictates the amount of loan you can receive. You apply for a title loan, and as soon as you are approved, you get your cash and drive away with your vehicle. Your only requirement from that point on is to ensure you return the loan.
Title loans work by using the equity you have in your vehicle, we will be placed the title as the lien holder, and you will sign your title loan contract, and make your monthly title loan payments until you either complete the monthly payments and the title loan is paid off, or you can pay off your title loan at any time with a lump sum.
That is how title loans work with us. now there are many questions that we will answer in the article, so please continue to read on and you will find the answers to more how do title loans work questions.
Even if you still owe money on your current vehicle, you can still get a car title loan. Just remember, the more vehicle equity value, the larger the awarded loan amount!
Can you get a car title loans while still making payments? Is it possible to get title loans on a financed car? Can you get a title loan for cars not paid off yet? How do title loans work?
Getting a title loan on a financed car can be done if there is enough equity in the car. If you have a small balance left on the car, then yes you can get a title loan on a financed car.
We help you get a title loans for cars that are not paid off, with enough equity, we can help you get a loan on your car title.
If you are still making payments, the title loan we can help you with, there has to be enough equity for us to help you with title loans on a financed car, we will pay off the other finance company, and get you your cash advance title loan.
So you can get a title loan on a car that is not paid off but there has to be enough equity in it for us to help you, as you can see how title can see work with us.
The maximum amount you can get with a title loan is $50,000, depending on the borrower’s preferences and the value of the vehicle. State laws also affect the size of a title loan, by setting a cap on the interest rates a lender is allowed to charge on a car title loan of varying sums. The title size is also influenced by direct limits applied by state laws as well.
Interest rates vary per state due to the different regulations that dictate the terms of title loans. Note that the overwhelming majority of lenders prefer to interest charges as fees, and they rarely charge any other type of expense on top of the interest rate. However, do go through the loan terms and conditions to figure out whether extra costs, such as certification fees and finance charges, apply – some lenders pass on these costs to the borrower.
Now, many borrowers find themselves struggling to repay their title loan, which puts them at risk of having their vehicle repossessed by the lender. To avoid this unfortunate and unwanted situation, you can rollover the title loan into a new (refinanced) loan.
The good thing with title loans is that most lenders do not run credit checks on the potential borrower. So, your credit scores are not impacted at all, given that a hard inquiry (a credit check) usually takes about five points off your credit score, which is a bad thing for you.
On the flip side, your credit scores are not positively affected by title loans either, since title lenders don’t report borrowers’ payments to the credit bureaus. Even if you default on your loan, the title loan provider is called to act by the Fair Debt Collection Practices Act and either sell or repossess your vehicle rather than report the delinquency. Therefore, your debt will not pass to the hands of a collection agency, which would notify credit bureaus about your financial instability.
The bottom line, if you eagerly want to improve your credit scores (which is probably why you could not get credit from more traditional sources), applying for a title loan will not help you toward that direction. It will also not cause any damage to your financial standing either, though.
Car title loans come with a fast and pretty straightforward approval process, unlike other types of loans that offer rather complex financing solutions. Things are simple. The borrower provides their vehicle as collateral. This means that factors like their credit score do not affect whether they are eligible for a title loan or not. What matters the most is the value of the vehicle and having clear ownership of the car in question. So, as long as a borrower can demonstrate proof of income (a reliable source of recurring income) and a vehicle that is worth more than the title loan amount they are applying for, there should be no problem at all. These applications are usually approved almost instantly.
Besides the easy-to-get-approved process, car title loans come with the following benefits:
You get instant cash – If you need money urgently, car title loans are an excellent solution. The moment the lender approves your application, and you agree with their terms and loan amount, you can collect your money. This usually happens within an hour or so from when you sent your application, provided that you submit all the needed paperwork on time, and meet the qualifying criteria. So, at times of dire need, an auto title loan is your most convenient cash option.
You get to keep driving your vehicle – The lender places a lien on the title of your vehicle. However, this does not mean that you need to hand over the keys to your car and walk away. The lender does NOT withhold or confiscate your car. On the contrary, you continue to use your car, motorcycle, truck, or other type of vehicle while making loan payments. The only reason you may lose the use of your car is if you default on the title loan. This gives the lender the right to repossess your vehicle. Even in such circumstances, though, there are alternatives to help you keep your car and still repay your loan (i.e., refinance your auto title loan).
No guarantor required – There is no need to have a guarantor to get an auto title loan. What makes a good assurance for the title loan is your vehicle and that alone.
Flexible payback scheme – You are usually provided with multiple payback options, including multiple installment plans that enable you to repay your loan without any inconvenience or hassle. Of course, you may as well opt for short-term repayment solutions.
Contact TFC Title Loans to get an instant car title loan or for any queries. We are your trusted provider of car title loans that will work with you to find the best financing solution for your needs.
Some people also ask if you can have two title loans at the same time, the answer is, yes you can but you cannot have two title loans on the same car.
If you have another car, you can get two title loans at the same time. So having more than one title loan at the same time is possible.
But having two title loans on the same car is not possible, we can refinance your title loan if you have it with another company, but you can not have two finance companies on the same title.
This is how do title loans work with financed cars
Title loans work in Texas, is the same as any other state, it will depend on the equity you have in your car, and then we will be able to see how much we can give to you.
When you apply online with us, we will pre-qualify your car, to see if you have the equity to get the title loan. Then we need to see your proof of income, so we can see that you will be able to support the title loan.
Title pawns and title loans are the same things. How title pawns work, are that they use the equity in your vehicle, and you can borrow against that equity.
Auto title loans will use your title as the security on your loan and use the equity in the car.
Interest will vary from lender to lender and from state to state. We will get you the best interest rate, but the deciding factors can be your credit, your income, or your stability. That is how much a title loan will cost.
When you apply online with us, we can get you a fast title loan, usually, we can get your title loan within 24 hours. As you can see with us, how to get a car title loan is fast and easy with us.
We have been helping people all over get the title loan that fits their budget since 1994, we are the most established title lender.
So what is an auto title loan and how does it work? Show us that you have ownership of your car, we will look into the equity, to see how much you will qualify for, then we will get you the title loan contract.
You will make your monthly payments until the title loan is paid off. This is how car title loans work.
How do title pawns work? They work the same way as regular title loans, we will use the equity in your vehicle, to get you the money you need for your title pawn, that is how title pawn works.
Loans come in a variety of arrangements ranging from deals between friends and family members to more intricate agreements fraught with fine print and contractual obligations.
It may be a student loan to pay for tuition fees, a loan to purchase a car, or perhaps, a mortgage loan.
Whatever the reason, it is a good idea to familiarize yourself with the various types of loans available and how the title loans work.
TFC Title Loans are conveniently located to make the process simple and easy, so contact us today and see if you qualify!
We understand that the need for an emergency cash loan does arise from time to time.
We have some basic requirements for getting a title loan, of cause you must have equity in your vehicle and proof of income to support the title loan. This is how title loans work with us.
For this reason, we have done our very best to streamline the process of securing money in times of desperation. At TFC Title Loans we can help!
We want to make it as easy as possible for you to re-stabilize your finances and successfully pay off your title loan.
If you can’t pay off your title loan, you might want to refinance your title loan with us and get a lower rate, so your monthly payments will be lower.
Below are a few basic requirements for obtaining car title loans, this is what you will need to get a title loan:
With these basic auto title loan requirements this is how title loans work, you are much closer to securing emergency financing. Note that rather than lending based on credit, we are mostly concerned with the equity value of your car.
This circumvents the need for a strong credit score, granting access to loans to those who otherwise might not have had access. Supplying this is what you will need to get a title loan.
Though we do run credit checks in the interest of protecting you, most title loan lenders do not. This is essential to understand how the title loans work …
This check, known as a hard inquiry, typically lowers your credit score by 5 points, we insist that it be done so we can underwrite a title loan that your income and lifestyle can handle.
It would negligent of us to lock you into an auto equity loan you cannot afford.
Likewise, most title loan lenders do not report your payments to the credit bureaus. If you are applying for a car title loan, you are probably finding it difficult to secure financing from a more traditional source.
Luckily, TFC operates online so finding help is just a call or click away!
In this case, you want credit or loans you do get to count towards your credit score. If you default on your loan, title loan lenders are required to comply with the Fair Debt Collection Practices Act. Let’s learn more about vehicle equity value …
The most important determining factor considered when applying for car title loans is the equity value of a given vehicle.
So when people ask car title loans how do they work, we always let you know that it is so important to work with a company that knows, and can get you the best payments that you can afford.
We have been helping people since 1994, this is what sets us apart from the other companies, we have the knowledge to help you.
As stated above, the larger the vehicle equity value, the larger the amount of cash that can be awarded. Herein lies the beauty of car title loans and this how title loans work.
Usually, you can borrow between 25% to 80% of the value of your car. According to the FTC, the average loan amount is $500 to $50,000, but some lenders allow you to borrow up to $10,000 or more! Loan terms are typically between 24 and 64 months. That is how title loans work with us.
When taking out a loan, you have an almost endless amount of options. You can apply for open-ended or closed-ended loans – secured and unsecured, short-term and long-term, single-payment loans, and installment loans. The list goes on and on. Car title loans, however, are considered collateral loans.
The collateral serves as protection for the title loan lender against a borrower’s potential default and can be used to offset the loan if a borrower fails to pay the title loan principal and interest.
Collateral also allows title loan lenders to offer lower interest rates. For example, the APR of an unsecured loan is typically much higher than that of a secured loan.
Whether you had previously heard of a car title loan or not, a quick refresher on the subject benefits anyone who wants to know how do title loans work.
Of course, there are numerous ways one can acquire fast cash, but not all loans are made equal. Many loans come with higher interest-rates and impossible loan terms that most cannot keep up with.
The consequence of taking on a loan you cannot handle can range anywhere between a tarnishing of your credit score or repossession of your assets. One might venture to say it is the business of certain lenders to trap unsuspecting borrowers into loans they cannot possibly repay…
If you have ever visited a payday lender or cash advance store while looking for a loan, you might have had the feeling that you were getting the short end of the stick.
Yes, second-chance loans do have a time and place, but still, why should the financially destitute have to suffer even more?
Likewise, if you have ever tried to borrow money from a bank, you know how arduous and rigorous the process can be.
Whether it is the need for a nearly perfect credit score or a full-on background check on you and your spending habits, getting a loan from a bank seems to have so many difficult stipulations you might as well just not bother.
So, where to turn when you need money today?
To get a title loan, you need to have equity in your car. You must own the car free and clear, meaning you do not have a loan outstanding in the car.
Working similarly to a title pawn, a car title loan could be your solution.
Because auto title loans are short-term loans, you will need to repay the loan quickly. Therefore, title loans are only to be used in times of real emergency. In some cases, you can extend repayment by “rolling over” the loan.
Instead of paying the loan off, you get a brand new loan! This leniency is one of the hallmarks of how do title loans work!
Note that you will have to pay new loan fees every time you do it; some state laws do not allow “rolling over” a loan.
As stated before, the last thing we want to see is you defaulting on your loan. We work with you to make sure you can repay your loan promptly suited to your budget.
Do not hesitate to get in contact with one of our dedicated title loan representatives. We are happy to explain how car title loans work and walk you through the entire process!
Together, we can work out a solution to keep you on track to repay your loan in a way that best serves you!
The first and foremost consideration of every potential car title loan borrower is to make sure they understand the terms of their offered loan completely. Ensure you ask about any fees that come with the loan, as well as the Annual Percentage Rate. When it comes to choosing the title loan provider from which to borrow cash, do consider the following before making any financial decisions:
How reputable the company is – Research things like where they started, how many years they have been in the business, how consumers feel about their interaction with the company, etc. Retrieving such details is made super easy with a simple Google search.
What the company asks for – Some lenders request a large fee to be paid upfront to accept your application while providing no guarantee that you will get approved. Applying for a title loan should be free and not add more stress to an already worrisome day for you.
How quickly can you get your money? – How much time does the lender need to approve your loan? Most lenders try to pay their borrowers within a full business day.
How do they protect your identity and information? – The title loan company you decide to do business with should use SSL technology when collecting your details. They should also be willing to give you more information about what they do with your details.
How can you get your car title back? – Do they offer a hassle-free way to regain the title of your vehicle? Some lenders ask for your vehicle and get to keep it long after you have repaid your title loan.
Is the application process easy and simple? – An application process that involves many steps and lots of documentation will delay getting your hands on the cash you need. A title loan with TFC Title Loans does NOT require a lot of paperwork. Instead, we all strive to work as fast as possible to get you paid.
Give us a call at 1-844-254-1918 or contact us using our online form. Let’s work together for a title loan option that will best serve your needs and get you fast cash today.
If you own a vehicle with substantial equity value and are looking for a cash loan, do consider TFC Title Loans to be the very best choice.
So, apply online today. We hope we have answered the question: how do title loans work? Read more about the loan definition here.
Loans for car titles are easy with us, but we will make sure you can repay the automobile title loan because to get a loan with a car title can be easy.
But we do not want you to be in a situation that you cannot make your monthly payments.
So your proof of income is very important, taking a loan against your car is easy but you must be careful, and choose the correct title loan company. TFC Title Loans is that company for you.
If you want to know, who does title loans, we do title loans and we do them better than the other companies. Get your cash advance title loan today from us, we are here to help you and show you how do title loans work.