Title Loans: What They Are, What They Do
What are Texas car title loans, you ask? If you're wondering how a friend or family member managed to pull four figures of cash out of seemingly nowhere to put distance between themselves and a tight financial bind, then you might be new to the idea of title loans. While there are several types of short-term lending solutions that you can turn to when bills get a little demanding, we believe that Texas car title loan deals offer the best in value and flexibility. Generally speaking, this type of lending solution offers the following perks:
- No credit checks
- Easygoing, uncomplicated application process
- Cash delivery within 24 hours or less
- Larger loan amounts than payday or cash advance
- Lowest interest rates compared to other short-term loan options
- Flexible financing schedules
- No restrictions imposed upon the client while the loan is out
"But really, exactly what are Texas car title loans?" The fundamental idea of a title loan is simple: If your name is legally registered to an unrestricted and fully paid-off title to any car, truck, van, motorized boat or motorcycle, you can relinquish it to us as a form of collateral while we lend you up to several thousands of dollars. The amount of money that you can take out in a title loan in contingent upon the value of the vehicle that's represented by the title, which is why we ask for the make, model and mileage when you apply with us. You may also need to furnish proof of steady income, which will further influence how large of a loan we can let you take.
When you pay off the loan, we hand the title back to you in the same condition that you gave it to us — no tricks or hidden agenda here. While we hold on to the title, the vehicle still belongs to you and can be used however you see fit as you continue to pay us off. Look at it like this: Your title isn't doing you any favors just laying around, and you lose nothing by temporarily exchanging it for the money you need to get through hard times. With the ability to buy out another account or refinance a current one, we exercise the full spectrum of legally permitted services as a trusted distributor of title loans in Texas.
Applying for a Title Loan
Title loans in Texas are pretty simple stuff when you're trying to get your foot in the door. Because there are no credit checks and plenty of room for exception and negotiation, you can almost always get a loan in some amount for your title while you hold on to your car. There are many locations for title loans in Texas, but you can opt to complete our 30-second online application to get started.
Title loan applications in Texas generally request the following information:
- Your name
- Your phone number so we can reach you
- Your ZIP code to verify your location
- The make and model of your vehicle
- The mileage of the vehicle in question, which helps us determine your title's value
Lenders of auto loans also need proof of identity and income, not as a matter of personal business but to legally protect both the company and the client. While steady income is preferred, there are exceptions where you can still carry a loan while collecting disability, unemployment or social security. Generally speaking, we're required by law to ensure that your income permits timely repayment of your loan, and we can not bank on late payment as a viable solution.
The simplicity of our application boils down to the nature of the loan itself, which limits the amount of information we need to collect about your likeness. Other lenders, such as payday and cash advance services, can sometimes to put their clients through the ringer with everything from your exact address and job title to employment and residential history.
Laws Concerning Title Loans
Federal and Texas title loan laws have been created over the years to ensure fair play on both sides of the field — client and company. The problem is, short-term lending agencies have garnered a reputation for exaggerating the benefits of their services and pulling the rug out from under their customers, oftentimes locking them into long-term commitments on an APR that only suits a temporary loan. You're not applying for a house here — you're just trying to pay the bills on time! We understand this, and so does the law.
Not all auto loan vendors are created equal, and some may still try to pull a bait-and-switch as close to the law as possible. This isn't inherent to title loans themselves, but the nature of the business as a dispenser of short-term loans of any type. We want you to make an informed decision based on circumspect regard for the law and the risks at hand; our clients' peace of mind with their decision is a priority when doing our part to help them out financially.
Here are a handful of very important laws to keep in mind going forward:
- Texas law dictates that interest rates may not exceed 10% under any circumstances, for any reason, ever. Violating this law constitutes usury, a serious offense that seldom favors the lender in the court of law. Texas also has no restriction on the size of a title loan, but the loan term may not exceed 180 days (six months), and there is no fee limit.
- Representatives who analyze clients in order to create and distribute auto loans must be certified in their trade. That means that lending agencies like ours can't just hire up someone off the street to handle your precious title and determine how many of your bills are going to be paid off this month — they need to have studied the business and earned the power to take care of you in this trade.
- It's become a critical requirement that lending firms like ours assess our clients for their ability to repay their loans in timely fashion. We're legally obligated to check your income status and ensure that, in the court of reason, you're willing and able to pay the associated fees and interest rates on top of the loan itself inside the agreed-upon payment schedule. If we determine that you're unable to fulfill this, we must either lower the requirements by adjusting the loan size and payment window, or we simply can not create a title loan for you.
Faster and More Affordable Than Payday or Cash Advance
We hope that we've answered that burning question here — "What are Texas car title loans?" — and put some of your insecurities and doubts to rest. We'd like to sum up a few of the reasons why Texas title loans may be a better pick for getting a leg up on those upcoming bills:
1. Lightning Quick
Our title loans impose a 30-second application with cash delivery hitting your account as early as the very same day.
With room to refinance and issue buyouts, title loans offer the flexibility of scheduling that other loan types are less likely to feature.
While short-term lending options aren't exactly dirt-cheap, title loans levy the smallest fees and interest rates to help you get your finances back on track.
How Long to Repay Car Title Loans?
Auto title loans are borrowing options for people with damaged credit. The interest rates are typically higher than those you will find with traditional loans from banks or credit unions. However, the application process doesn't involve a credit history check and applicants can borrow up to thousands of dollars.
The repayment plans are broken up into two categories:
- Lump Sum Payment Plans. Also called "single payment deferment," these loans have to be repaid in full typically at the end of 30 days. If you borrow $1,000, for example, then the $1,000 principle plus interest is due 30 days later. This is a good option if you need an advance on a sum of money you're anticipating, like a tax return or student loan.
- Installment Payment Plans. Installment payment plan auto title loans are more like traditional loans. Payments are split up over several months. Repayment terms usually last six months but may last as long as a year, depending on the lender and the size of the loan. Payments may be split up into equal amounts or they may be in small increments until the final payment, which is a balloon, or larger, payment. Applicants seeking title loan help typically gravitate towards this type of loan since making monthly payments is easier than making one lump payment.