Title Loans Near Me – Title Loan Places Near Me
What is a Title Loan?
A title loan is a loan in which you need to place an asset that you own in collateral with the loan provider. This type of loan is very popular today, for two main reasons. For one, title loans are one of the few types of loan that do not take your credit score into account when checking if you deserve the loan. Second, you can get approved very quickly for title loans, and the loan amount can be as low as $100 if you want it to be.
If you’re looking for title loans near me and you or even title loans online, you should know a few things about this type of loan. For one, the most common form of a title loan is one called a car title loan. In this type of loan, you have to own a car yourself, without it being under lease or finance. You can sign ownership of the car over to the loan company as collateral. Upon this, the loan company will provide you with up to a quarter of the total value of the car.
How Much Can I Get With a Car Title Loan?
Typically, you can earn up to $1000 on loan from your loan issuer for your car. This value can increase based on the type of car you own. You can repay the loan with a one-time payment or on an instalment plan that can last for up to two years.
If you don’t pay back the loan amount in the time that has been agreed upon, you’re liable to have your car repossessed by the car title loan company. Of course, the more forgiving loan companies can actually allow you to pay off your payments’ interest only, which allows you to keep using your car while making payments indefinitely until the loan has been repaid.
How Much Will a Title Loan Cost?
Getting a title loan online or at one of the many title loan places near me and you might seem like the way to save yourself when you have bad credit or failing finances and need cash quickly. The problem is the cost. There are some pretty high costs that can hurt your bank account rather badly. The annual percentage yield on a loan like this is about 300%, with over 100% interest. This can lead to a catch-22 situation where you can never actually make up for the loan’s principal.
How Does a Title Loan Work?
Before you start looking up how to get title loans near me, think about how they work. You are typically issued a loan like this for a small amount of money, to be repaid over a shorter time frame. The loan is given to you when you have signed over your asset, such as your car, over to the lender. You will also typically agree to pay a fee to the lender. The usual time given to pay the loan amount and interest back is 30 days.
To get one, you need to look up “title loan companies near me”, and then walk into a store to get your loan. You have to take a few essential documents with you. These include an application for the loan that you will fill out while there, ID, and the title deed for your asset (usually your vehicle). You might also be required to bring your asset with your or take the lender’s representative to the asset to look it over.
The Advantages of Title Loans
Easily one of the easiest ways to get yourself a title loan is to use your car as collateral. Here are some of the advantages of getting yourself a title loan:
- Quick and easy
One of the main perks of getting yourself a title loan online or in person for your car is that it is fast and easy. The process can take as little as ten minutes to go through. When your application has been submitted, and provided your documents are in order, you can get the cash for the loan amount to your hand on the same day!
- Credit score isn’t an issue
Another name given to the fast title loans of today is “no credit check” loans. This is because the loan is based off the asset you have put up as collateral. It makes the process of applying and being approved far easier even if you have bad credit. As long as you have a source of income, it is very likely that the title loan companies near me and you won’t even ask to see your credit score and returns.
- You qualify with any vehicle
The vehicle type that you own doesn’t really matter for getting a title loan. As long as you have one, whether it is a car, truck, SUV or whatever else, you qualify. Remember that since you aren’t basing the loan off your credit score, you qualify for it as soon as you have signed the title over to the company.
- You don’t have to give up the car
Getting a car title loan and signing your vehicle over to the issuing company doesn’t mean that you have to give the physical vehicle to the company. You can use the car even though it is given to the company. If you can’t make your payments, this could lead to repossession, but you won’t have to worry about losing your car if this isn’t the case.
- Cheaper than getting a cash advance
Car title loans use vehicles to offer protection to the loan issuing company. This means that their interest rates aren’t nearly as high as similar loan types like payday loans. As long as you can find a good place to perform a title pawn near me and you, you should be fine!
The Drawbacks of Title Loans
- Higher interest than most other types of loans
Many people who get car title loans only do so when they are faced with financial crisis. This is because it is one of those types of loans that can have extremely high interest rates. While the rates aren’t nearly as high as cash advances, they can still be among the highest in the industry.
- Added fees and weird interest repayment plans
The car title loans of today have other fees in addition to the interest rates that can be way overboard. These include fees charged to you for documents, processing, late payments, origination, and other fancy names that have no relevance to the actual loan process.
Roadside assistance is a service that is offered by many lenders now offer. In some cases, this service has to be purchased when getting the loan. You have to pay an extra fee for this, of course. You may have to pay as much as $100 extra for the roadside assistance program!
While most of the fees that you are charged by the loan company are legal, there is one you should watch out for. If the contract for your title loan charges you a repossession fee, back away. This is illegal, and lenders are not allowed to charge you for the repossession of your vehicle.
- Rollovers and vehicle repossession
Most people who take out a title loan on their car or other assets can’t pay the loan amount back at the end of the term. This is because these loans are usually taken out by people with low incomes, or because of the high interest rates. When the loan isn’t paid at the end of the term, a rollover is done.
This is a tactic that can keep you in debt for a long time. Since you can’t pay off the loan amount, you have to pay even more interest on top of the original loan amount for a long time.
Tips for Getting the Best Deal on Your Title Loan
- Know all the different payment options
Before you take out a title loan online, make sure you know about all the different options open to you in terms of repayment plans from the lender. Some lenders will ask you to pay them directly through a bank transfer or using cash. Others will require that you pay them from your paycheck. You also have to find out the period of time the loan will last.
Just like any other loan you take from a bank, the longer the period is for repayment the lower the amount you have to pay each month. The problem is how much more you will be paying a month for finance costs. Because of this, it is in your best interest to ensure that the loan only remains outstanding for a short time.
- Check if there are consequences for repayment
There are instances when you look up “title loans near me”, walk into a company and get a loan that paying the loan of early can be a problem. Any loan that lasts for more than a month can have an early payment penalty attached to the contract. If you suddenly receive some money and decide to pay the entire loan amount early, you could very well be penalized for it!
Why they do this is simple. The goal of a lender is to make a profit off you. To do this, your loan is designed to make the most money off your interest when you repay it. When you save yourself thousands of dollars in interest charges by paying the loan early, your lender loses all this prospected money. To deter you from doing this, they can and will charge you for early payment.
- Know the process used for approval
It is common today to get title loans online because of how much easier the process is. The application for this type of loan is also online and can take you about 20 minutes to fill out. This saves you a lot of time and travel costs too. You may be required to talk to the lender over the phone to hammer out some additional details. Always get to know every bit of the application so there are no nasty surprises!
- Know what car models are accepted
Most title loan companies near me and you will only accept cars after or before a certain year in order to ensure value. Some of them will require that your car have been made in or after 2000, while others are laxer. Sometimes, you may be asked to show the mileage of your car as well. If you have a mileage of over 100,000 miles, you should make an effort to contact the company and ask for their specific mileage restrictions. Do this before you fill out an application or sign anything.
- Look for a license
Every state has its own regulations. These laws will determine the eligibility of a title loan company to lend money and take vehicles as collateral legally. The regulations vary based on the state you are in. Check that your lender is registered in your state before you take a loan from them. This is your responsibility. If they aren’t registered, you are engaging in a criminal activity that could send you to jail.
- Ensure that you can drive your car!
This is the last and most important tip for not getting cheated when you engage in a title loan agreement. Nearly every self-respecting title loan company will let you use your car after you have received the loan. The problem is that there are bad seeds in every industry. You are more than likely to meet an example of this in the form of a company that asks you to impound your car with them for the duration of your loan. There are other companies that will install GPS trackers in your car to remotely shut it down if you default on your loan.
Title loans are safe as long as you know you can pay the amount back in the time specified. Before you look for ‘title loan places near me’, make sure you have all the details sorted out, and that you shop around for the deal that is the most secure for you.