Texas Car Title Loans 101
When you find yourself needing to cover unexpected bills or expenses and are short on the funds to do so, you may need to consider your options for borrowing money. If you ask your loved ones if they have the ability to lend you some money and they cannot, then you will have to move on to your other options. Matters can be even more difficult if you have bad credit. Your loan options are very limited unless you have a good credit score. When it comes down to it, you may just find that there is hidden cash in your assets such as your vehicle. In Texas, you can decide on using your vehicle title for collateral to get a loan.
While many people have heard of using your vehicle title for collateral, they don't always fully understand what a car title loan is and how the process works. Below is some basic loan information about what car title loans are and how they are used to get you the cash you need when you need it.
How Car Title Loans Texas Work
An auto title loan works just the same as any other collateral loan. You will put up an asset, a vehicle title in this case, to secure the loan. The collateral is a guarantee to the lender that they will get paid for the loan. The amount you are able to borrow from a title loan lender will be dependent on the value of the vehicle you are putting up as collateral. You will need to let the lender put a lien on the title. Once you pay off the loan, the vehicle title will be returned to you without any liens on it. If you do not pay back your loan as stated in the loan terms, the lender will be able to keep ownership of your car.
While you are using your vehicle as collateral to get emergency title loans in Texas, you are still able to drive your vehicle like normal for your day to day needs. This is true even while the lender has your title with them. A great benefit to getting a collateral loan through a Texas title loan lender is that you can use different types of vehicles. If you have an SUV or an RV, you can use the title as well to get a loan. Additionally, motorcycles and motor homes can sometimes be used as well.
My Car Is Not Paid Off
If you still owe money on your vehicle and have a loan through a lender for it, you can still use it to get a title loan as long as there is enough equity in the vehicle. Texas auto title loan lenders understand that each borrower has different circumstances surrounding their situations and needs for using your vehicle title for collateral. They will work with you to find a suitable solution to your emergency cash needs. There are always chacnes when you can take out a second lien title loan.
Interest Rates For Texas Vehicle Title Loans
The amount of interest for a title loan varies between different title loan lenders throughout the country. Here at Texas Title Loans, we will give you a monthly interest rate on your loan. The amount your loan will be approved for will depend on how much your car is worth and how much equity it has. There are also other factors that will help determine the loan length and cost of your loan overall. While title loans don't offer the best interest rates compared to other types of loans, they are perfect when you need cash fast and don't have great credit.
How Much Can I Get?
Like stated earlier, the amount you can borrow will depend on the value of the vehicle you are putting up as collateral. In most cases, the lender will appraise your vehicle and offer you up to fifty-percent of what your vehicle is worth. They do this so that they are able to leave a little bit of wiggle room in the unfortunate event that you cannot pay back the loan in full.
How Long Is The Loan For?
Title loans through us here at www.texas-titleloans.com can be anywhere from a few months to a few years. The final loan term will be figured out during the application process.
Is A Credit Check Needed?
The best thing about using your vehicle title for collateral to get a loan is that most lenders will not require you to submit to credit checks to get approval. This is because the vehicle is put up as collateral and is a guarantee to the lender that they will not lose out on getting their money back. The most important requirement to getting approved for a title loan is having enough value or equity in your vehicle.
What Happens If I Don't Pay The Loan Back?
If you don't pay back the loan or aren't able to fully satisfy it, the lender has the ability to take over ownership of your vehicle. However, if you are simply struggling with the payments and don't want to default, the lender will work with you to negotiate a new repayment plan. Oftentimes, this should only be done as a last result because you will usually end up paying more in interest. When your title loan goes into default, you won't just get your vehicle taken the very next day. Usually, you can work out a deal with the lender so that you will be able to keep your vehicle. Lenders are more interested in helping you pay off your loan than taking over your car and having to sell it to get their money back.
How To Apply For Title Loans
Applying for a title loan is very simple. When you visit the site, you will just have to supply the lender with some basic information about yourself and the vehicle. Depending on their specific policies, you will either be able to do the whole application online or be required to visit the store location in person in order to start or finish an application. They will make their offer based on the inspection of your vehicle. Once you have received their quote and agreed to all terms and conditions and signed the contract, you will be getting your loan funds in as soon as the next business day. Title loan lenders will issue your funds to you through direct deposit straight into your checking account.
Can I Pay The Loan Off Early?
Most lenders are happy to let borrowers pay off their loans early. However, sometimes a small penalty may be issued. This penalty will be discussed to you before you agree to the loan in the first place. Overall, penalties for paying off title loans early are on a case-by-case basis. Always read the fine print of your contract before signing it. If any areas of the contract don't make sense to you, do not hesitate to get clarification with the lender before getting the loan. The right lender will work hard to make sure you fully understand your loan so that there is no confusion as to what the costs and fees are going to be associated with your new loan.