Applying for title pawns is pretty straightforward. The whole process can conclude in as little as 10-30 minutes. It is a great way to receive immediate cash without subjecting yourself to a grueling credit check. Furthermore, you will have the opportunity to utilize your car after receiving your auto title loans.
Things You Need To Get Your Auto Title Loans Approved
The requirement has a slight variation, contingent upon the state where you are applying for title pawns. However, the process associated with it remains constant. After you completely sign up for the form, a company representative will study your case and assign cash for you. You will then have to sign the agreement, and you are free to take away the designated money. The loan company will not sequester your car. You are only using the vehicle title as the collateral for your loan.
On auto title loans or pink-slip loans, you need to own the car personally without any lien on the title when applying for it. Other requirements include at least two references, contact information including address, phone number, and name, a document that tells your ability to pay back the loan, proof of insurance, vehicle registration (the most recent), utility bill, Government ID, and the original title of the car.
Some lenders will require a tracking device on your car. It will allow them to monitor the location of the vehicle. You are not required to have a good credit history to qualify for auto title loans. Some lenders will not conduct a credit check on you since the loan you are getting will solely depend upon the current value of the car you own. Sometimes, you also do not have to be properly employed to qualify; you will only need to prove that you can repay the loan.
The Fees and the Rates
Compared to the traditional loan in the bank, auto title loans are a bit expensive, but it is a perfect way to get your needed money immediately. The amount of interest highly varies depending on the loaning company. The common interest starts from 30%/month or a total of 360%/year. It only means that if you receive $1,000 for your title pawns, you will need to repay a total of $1,300 by the end of the month. You will also be charged an additional fee that amounts to $20-$30.
All in all, auto title loans are perfect for those who have a car but do not want to go through an invasive background check and credit check. However, you should make sure that you can produce enough money to repay, or you can incur an excessive amount of fee or additional interest.
Auto Title Loans Alternatives
Auto title loans may appear to be your only viable option during your moments of need. However, other options can help you with your financial worries. Suppose you are experiencing some monetary difficulties and need immediate cash to help you get out of the situation. In that case, there are some alternatives to title pawns that can produce the amount of money you need but not the equivalent risk. If you do not want to make your car collateral for the loan, consider some of the alternatives we will provide.
Cash Advance using Credit Card
When using your credit card to receive a cash advance as an alternative to auto title loans, you should be aware that you will be subjected to paying a higher interest rate than the average. However, if you are already considering the title pawn option, your credit may have already reached its limit. Still, call your bank directly and see if there is a way to extend your line to address your financial emergency.
Suppose you have a good credit standing and a good and healthy relationship with the credit union and bank. In that case, you may consider personal loans as an alternative to your auto title loans. Unfortunately, you will end up borrowing a higher amount of money than what you originally needed. The payment term for the personal plan can be stretched out, making it a lot easier to manage. You will have to undergo some credit checks and sometimes background checks before getting approval. It is not ideal when you need an immediate source of funds.
Check the amenities that you are receiving as an employee of your company. Some companies offer their workers short-term loans, and you can use them as an alternative to auto title loans. The prevalent terms of the emergency loan may vary from different firms, but it is a great way to secure funds at a very reasonable interest rate. Payment terms are also flexible. Ask the HR department if they are providing this type of loan.
If you do not require a high amount of money, you may choose to pawn your other valuables as an alternative to auto title loans. Electronic equipment, musical instruments, jewelry, and other valuables can be pawned and may produce the amount you need. If you fail to pay the pawnshop in time, you could lose your important belongings.
Like car title pawns, the alternative above also comes with additional risks. If you do not want to make your car collateral for your loan, you may opt for these alternatives depending on your qualification.
Tips that Will Help You Find the Best Auto Title Loans
When you need an immediate fund, the first thing that comes to your mind is to apply for a personal loan to your bank. Unfortunately, it will go into a detailed process that includes filing the right paperwork, credit checking, and others, which is not ideal for people in dire need of monetary assistance. Auto Title Loans would be your best answer during this situation. With the simplified process, you may be able to receive your needed fund in as little as 10 minutes. Nonetheless, title pawns are not created equal. Here are some ways to find the best car title pawns.
The Payment Option
Knowing the repayments you need to make, either through check or direct payment, is essential. However, it is also vital to know how long will your payments last. Most Auto Title Loans companies will require you to pay monthly; the shorter the payment term, the better it will be. Paying every month is also more flexible since your payment will be divided into several months.
The Process of Application and Approval
There are Auto Title Loans companies that will allow you to complete the entire application process online, which is more convenient for you. Some companies will require you to undergo a verification process. The verification process as a whole will last for more than 20 minutes. Some companies require a thorough inspection of your car before approval. The assessment will be conducted during your appointment and before receiving your needed fund.
The Length of Approval
How long do you think it will take before receiving financial assistance? Depending on how efficient the Auto Title Loans may be, the approval can be as short as a few minutes or last for several days. Some title pawn companies will send your fund through bank transfer. If they are doing this, you should be aware of how much the bank charges for the transfer.
One of the key attributes of a great Auto Title Loans Company would be its license. Remember that you will not receive your loan if the state does not authorize the company to do business. Be sure to read the state's eligibility before you apply for car title loans. On the off chance that you are finding it hard to find an Auto Title Loans Company that will help you with your financial need, this article can help you find the best lending company in the region.
Tips When Shopping for Auto Title Loans
Most of the title pawns come with a high-interest rate that serves as an option for people who have bad credit if they are not qualified to apply for a bank loan. This type of loan is specifically designed to prevent you from incurring a series of financial debts that increase when you pay your interest. To find the most desirable kind of car title loans, we created a short but comprehensive list that will serve as your guide in finding the right Car Title Loans Company.
Be Aware of the Interest Rate
Most average Auto Title Loans have around 25% interest per month. While some of you may initially think that the monthly interest rate is quite similar to your credit card interest, which is around 21%, remember that the credit card is an annual interest. A car title loan's total APR (Annual Percentage Rate) would be a shocking 300%. When a company hands you an interest rate, you should verify if that is a monthly interest rate or an APR. The federal law requires these lending companies to give an annual rate, but only a few abide by this law.
We won't lie to you; there are many lending companies engaged in unscrupulous business. You need to examine the contract carefully. If you notice a forced arbitration paragraph, you need to know that they are taking away your right to file a legal complaint. If you see Auto Title Loans with this clause, do not sign it. There are better companies out there waiting for you.
Amount of Fees Charged
You may think that the high-interest rate is the end of it, but other Auto Title Loans will charge you with additional fee apart from the interest rate. There are even companies that will require you to purchase additional coverage, roadside assistance, and life insurance that can increase the whole expenses. If the company will also charge you with a repossession fee, be aware that this fee is illegal.
Apart from the interest rate and the other expenses, the Auto Title Loans Company may charge you a penalty if you conducted an early repayment. Remember that the title pawn company will profit based on the interest rate, and early repayment will reduce the amount they can take from you. Ask them about the possible penalties.
Auto Title Loans may be your solution to receive financial assistance when you need immediate cash. But keep in mind that you need to study the things we mentioned above to prevent yourself from incurring a higher debt.
Choosing the Best Auto Title Loans
The title pawns can be the best source of immediate funds for people suffering from poor credit reports. These are short terms that became popular mainly because the loan can be received immediately, and a credit report is not crucial in getting approved. The only thing a borrower needs is a vehicle that will serve as a guarantee should something occur that prevents you from paying your loan. With the Auto Title Loans, you will be obliged to submit the basic requirements such as a separate key, proof of insurance, ID, and the car title. However, with so many lending companies providing this type of loan, how will you be able to find the best lender?
Analyze the Term of the Loan
Under the Federal Truth in Lending Act, the lenders are compelled to divulge the entire cost of the loan with no hidden fees. They are also obliged to disclose the things related to the loan amount. They should also enlighten you about the APR and the finance charge. The APR is based on different factors such as the loan period, the amount of the fee paid, the monthly interest rate, and the full amount of the money borrowed. Aside from the interest rate, the Auto Title Loans may also charge you additional fees such as Lien, Title, loan origination, late payment, document, and processing fee. Make sure that you review the cost of acquiring a car title loan.
The Add Ons
There are times that the Auto Title Loans may require you to purchase add ons before your application will be approved. You need to analyze if the add ons will provide an additional value for your car, such as road assistance. Otherwise, you are just adding it to the cost of your car title loan for no reason at all.
What Happens if You Failed to Repay the Loan?
The inability to repay the amount you borrowed can happen at any time. Some lenders can roll over your loan, giving you adequate time to pay the loan. However, you need to be aware of the cost of the additional monthly charge when they roll over your account. The best Car Title Loans will not charge you an excessive monthly fee when they roll over your account.
When you apply for an Auto Title Loans, see to it that you have the budget to repay the loan if you do not want your car to be repossessed. You will not only lose the full value of your vehicle but all the benefits that come with it.