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.
Basic Requirements
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.
Additional Requirements
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.
Personal Loan
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.
Emergency Loan
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.
Pawning
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.
Licensed
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.
Arbitration Clause
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.
Penalty
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.
