Have you ever found yourself in need of emergency money to cover an unexpected expense? While looking for a solution, you may’ve heard of car title loans. Did you know that they have a number of advantages over other loan types? Read on to learn more. And if you have any other questions, don’t hesitate to contact Max Cash® Title Loans2. We are happy to help resolve any confusion you may have.
What are Some Advantages that Car Title Loans Have Over Other Types of Loans?
Car title loans offer borrowers a number of advantages over other types of loans.
- Quick Approval – Other types of secured loans can have approval times that involve a lot of processing. In contrast, you can be approved for a car title loan in as little as a single business day, once you complete all your documentation1.
- Larger Loan Amounts – Because car title loans are secured loans, borrowers can frequently get larger amounts of money than they would be able to with an unsecured loan, such as a payday loan1.
- Superior Interest Rates – Car title loan lenders are also often able to provide borrowers with superior interest rates compared to unsecured loans4. This is because lenders are able to assume a higher level of risk with secured loans, as they have a way to recover their money in the event of a borrower defaulting.
- Variety of Credit Ratings Accepted – Car title loan lenders understand that not everyone has perfect credit. Because of this, lenders accept borrowers with a variety of credit backgrounds. They are more interested in their customers’ ability to repay the loan than their credit histories5.
What Do I Need to Get a Car Title Loan?
If you’re interested in getting a car title loan, you’ll need to put a few different things together:
- Qualifying Car Title in your name
- Proof of Income
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Proof of Residence (Certain pieces of mail)
- Photos of your car (front, back, and sides)
How Much Can I Borrow With a Car Title Loan?
There are a few different things that impact the amount of money you’ll be able to borrow using a car title loan:
- Car value
- Length of the loan
- Size of your monthly income
Your car’s value is determined by a few different factors like, its condition, age, mileage, make and model, etc. The value of your car determines the absolute maximum amount of money you can potentially borrow from a lender. The duration of your loan determines the size of your monthly payments. And your monthly income is used to calculate how much you can afford to pay back each month. The length of your car title loan might be limited by state laws. If that’s the case, it can influence your ability to get a loan due to your ability to repay it within the time limit.
What Can I Use to Show Proof of Income for a Car Title Loan?
A lot of people think that you can only use a recent pay stub to show proof of income for a car title loan. There are actually a number of different ways you can demonstrate your ability to repay your car title loan:
- Social Security
- Child Support
- Worker’s Compensation
What Do I Do if I Don’t Have my Car Title?
If you’re missing your car title, you’ll need to get a new copy from the DMV. Certain locations may even be able to provide you with an expedited copy of your title. Max Cash Title Loans can potentially help you locate the DMV nearest you able to give you an expedited title. And in certain instances, they may even be able to help you directly with getting a new title. If you’re able to add your lender as a lienholder at the time of acquiring your new title, it may reduce the turnaround time on your car title loan1.
What Happens if I Can’t Pay Back my Car Title Loan?
If you’re having trouble paying your loan back, contact your lender immediately. Although the exact default procedure varies by state, there are a number of commonalities. Once a borrower misses sufficient payments that they default on their loan, they may receive a right to cure notice, advising them that they have a short grace period in which to pay back the balance of their loan. Once any applicable grace period has expired, lenders may begin the repossession process.
Once a borrower’s car has been repossessed, it’s normally sold at auction. The proceeds of the auction go towards paying off the balance of the loan. Each state has different laws regarding the disposition of the proceeds from the auction. Some states allow lenders to continue pursuing borrowers in the instance that the money from the auction doesn’t cover their loan. Other states require that any excess money over the balance of the loan be returned to the borrower.
Is There a Way I Can Extend the Duration of my Car Title Loan?
It isn’t always possible to extend the duration of your loan, but if state laws permit you can often roll it over into a new loan. If your lender allows, at the end of your loan you can roll the balance over into a new car title loan. While there may be some fees associated with this, it allows borrowers to have a whole new loan term to pay the loan back.
Now that you know a little more about the advantages of car title loans, you can see they are a great option for borrowers in need of immediate funding to help resolve financial difficulties5. If you have any questions, Max Cash Title Loans is happy to answer them. Let US be the helping hand that guides you through the car title loan process1.