If you are thinking about a title loan, it will be helpful to know about the different title loan laws that can exist. The specific title loan laws that are present will depend on which state that you live in. However, in general, these laws will fall under certain categories. Below is a brief overview of the title loan laws that are out there.
Title Loan Laws on Minimum and Maximum Loan Amounts
Depending on the state that you live in, there may be maximum loan amounts that a lender can give out to a borrower.
On the other hand, there may be a minimum amount that must be given out by a title loan lender. As a borrower, this will mean that your vehicle will have to be worth at least enough to qualify for the minimum loan amount. Car title loan value will be based both on the value of your vehicle, income, and your ability to repay a loan.
Title Loan Laws with Interest Rates
With any loan, personal loans, payday loans or credit cards there will be a principal amount (the amount borrowed) and the interest rate. With secured loans you will generally find high interest rates in comparison, but more flexibility with eligibility,
In most cases, you will see the interest rates in the terms of the annual percentage rate (the APR). The APR represents the total amount of interest for the loan for the year. You might also see the monthly percentage rate (MPR) which the APR broken down into monthly terms. When it comes to title loans, the interest rates can range.
In many states, there are limits on the amount of APR that a lender can charge for a loan. And so, when applying for a title loan in your state, make sure that your lender is reputable and that you know about the maximum amount of interest for a loan. These limitations will provide responsible lending for consumers.
Repossession and Rollover Laws
If a title loan defaults (you cannot continue repayment) then the title loan lender will repossess your vehicle.
When it comes to repossession with a vehicle, the laws of your state on repossession will greatly impact the process if you have to experience it.
For example, in some states lenders will have to provide you with a given time to catch up on payments with an attached late fee. While other states allow lenders to sell you the vehicle as soon as they repossess it.
- Rollovers—when it comes to Rollovers some states may have will either allow rollovers or not, while others may limit the loan rollovers that a lender can conduct.
Are there Laws with Requirements?
Generally, there aren’t state laws around title loan requirements (other than the minimum value of the vehicle).
In order to determine eligibility for these secured loans, title lenders will pay attention to the value of the vehicle, and your income. Additionally, lenders will play close attention to the vehicle title. In most cases lenders will ask that you the title is clear, and you have insurance, or you get insurance on the time of receiving the loan.
The value of your vehicle will be determined by your car’s make, model, year, mileage, and condition. While for income you will have to provide proof of income through documents.
Where to Start When Looking for an Auto Title Loan?
Not sure where to start for a car title loan? Let Max Cash® Title Loans Help you out! At Max Cash Title Loans we are the #1 online title loan marketplace. Instead of being a direct lender ourselves, we make it easy to connect with lenders all across the nation.
Here are some of the benefits that can come with the lenders that we work with:
- Low monthly payments4
- Competitive interest rates4
- A simple process
- Flexible repayment plan — whether you need a short-term loan or long-term loan, a small loan or a loan in the triple digits we may be able to help!1 2 5
- Pay early without any penalties3
- A transparent loan agreement3
- No Loopholes to jump through.
- Poor credit is okay.
- We service several states all over the country.
- All of our lenders are vetted.
What Documents Do I need When Applying for an Auto Title Loan?
Here is what documents that you will need when applying for a car title loan.
Regardless of what state you apply in you will need:
- A State-Issued Photo ID (driver’s license, passport, etc.)
- the var’s title
- proof of income
- proof of residency
- several pictures of the vehicle
- 3 References
- Car insurance
Apply for a Title Loan in You State Today!
Although not all states allow title loans, many do! And if you happen to reside in one of these states, a car title loan could mean fast cash regardless of your credit score. To get started simply head to our website and apply for a car title loan, or give us a call at (855) 561-5626 7 days a week.