Unpaid loans are not ideal. Defaulting on a loan such as a title loan comes with consequences. If you have unpaid loans, several things may happen:
- The loan lender may decide to sue you for the unpaid balance
- Your car can be taken by the lender to cover the remainder of the loan balance
- You may fall victim to the unmanageable interest rates and inconvenient terms
Most borrowers first thought after considering an auto title loan is, “What if I can’t pay my title loan”? This is an honest question you should ask when considering any loan, not just a title loan. Being honest with yourself is important so you do not get into a situation that you have no control over.
Relax and take a second to think about the decision you are about to make. Jumping in to a loan without thinking about what is being offered may cause you to take on a payment you cannot afford and lock you into a contract. And, it’s possible that you may be in a situation where your vehicle is repossessed in the future due to non payment.
- Be honest. Ask yourself, “Can I really afford my payments, am I willing to lose my vehicle”?
- Taking on new debt is a big responsibility and although you may be in dire need. You must consider all scenarios because what may help you now, may make things worse later.
- Don’t rush into anything. If possible, to get any offer in writing so you can look it over before you sign anything.
Will my car be taken from me if I default on a title loan?
The car repossession when you default on a car title loan happens because you are using your car’s title as collateral for the car title loan. Once the lender repossesses the vehicle, they usually take it to a specific place to store vehicles, like a tow site.
Still confused? Well let’s look at what a loan default it is. Defaulting on a loan simply means you have stopped making payments on the loan. When you sign a loan contract, you agree to the terms of the loan. You are obligated to pay the loan as according to the contract. Therefore, if you were to default on a title loan, you are not meeting the obligations that had been set.
Car title loan repayments are typically done through monthly payments. If you begin to miss these monthly due dates, the minor penalties are typically late payment fees, which vary depending on your lender. On the other hand, some lenders might not charge you with late fees. But it is always a good idea to learn how long you can be late with your payments before your car title loan is defaulted due to missing payments.
Of course, continuing to miss car title loan payments without speaking to your lender would then result in a default on your title loan. But with every car title loan, rules on a default could vary on several things:
- The state that you live in.
- Policies put forth by your car title loan lender.
- The loan agreement
As a borrower, title loan lenders should notify you about missed payments, especially since most car title loan lenders determine the default on a title loan.
Consequences of Non-Payment of a Title Loan
The absolute final consequence of non-payment on a car title loan is repossession. However, most car title loan lenders would prefer to avoid this last resort for a variety of reasons. For one thing, it is expensive, time consuming, and a hassle for them to go and repossess a car whose title they have a lien on. The car title loan lender could lose money even if they manage to sell the car because they might not make all of their money back at the auction.
If you feel that you are close to finding yourself in a similar situation, it is best that you get a hold of your lender as soon as possible and be honest with them. Peace of mind might be easier to achieve than you originally thought! That said, lenders are often willing to work with borrowers to come to some kind of arrangement that will benefit both you and them. They would rather help you avoid defaulting on a loan and having your car repossessed. You may be able to explore refinancing options or request a loan modification in some cases.
How To Get an Auto Title Loan With Max Cash Title Loans
Max Cash Title Loan is a financial broker, which means we can connect you to verified title loan lenders in the industry.2 5
Whether you want to refinance your loan or apply for a new one for the first time, the process can be simple and convenient. The 3 step process is quick and painless, unlike those pesky registration loans! Here’s how you can get started on changing your life with an auto title loan:5
Fill out your loan request
To begin your journey, all you have to do is go online to our homepage and fill out a quick little information request. The whole thing should take about 5 minutes. We will ask you some information about your financial history and your car. After you fill out the online form, you will know if you are pre-approved right away! Don’t waste your time waiting around for unreliable lenders. Max Cash Title Loan is efficient and professional because that’s how people like it!2 5
Get approved
If you receive initial approval, your auto title loan agent will be in contact with you to talk about your free quote. Yup, that’s right, it’s free! After you and your agent discuss your free quote, you can work together to determine the best payment plan for you using competitive rates and convenient terms.4 5
At this time, your auto title loan agent will request a few documents from you. Here are some basics that you will need:
- Government issued form of photo ID
- Proof of income
- Proof of residence
- Vehicle title in your name
- Several photos of your car taken from multiple angles
Get your money
After your lender has received your documentation, they can draw up your auto title loan contract if you are fully approved. When you sign your auto title loan contract, your lender will also become your lienholder and be added to your car’s title. But this is only for the duration of your auto title loan.
There are multiple ways you can get paid your auto title loan money:
- Electronic direct deposit
- Picked up at a participating location, like a money transfer spot
- Check in the mail
Your successful financial future starts now! Come to Max Cash Title Loans and get started on your auto title loan today!
Call Us To Run Through Your Options!
We are not your lender. We are not going to get you in trouble. What we can do is go over options to get that loan paid off by another lender or even call your current lender and get the one you have right now redone so it works. Don’t be afraid. We help people in this situation effortlessly. Call us at 855-561-5626 and ask the loan processor about refinancing your loan and be honest. If you’re not sure where to begin, or how to find a lender, the customer service representatives at Max Cash Title Loans are standing by to help you get started.