For many people, getting a loan to cover emergencies or urgently pressing bills doesn't come easy. Most major banks and credit unions will not grant loans to the unemployed. Even when consumers have steady employment, they may not be on their job a long time or have a stellar credit rating and FICO score. Worse yet, these loan applicants neither own a home, condominium or co-op apartment that can be used as collateral.
This is why so many people take out a Title Loan, sometimes known as a Car Title Loan or Pink-Slip Loan. They use their automobile as collateral for a short-term loan. Title loan resources are based on the worth of the vehicle and not the loan recipient's personal financial status. Applications can be processed quickly, and same-day payments are not unusual when all requirements have been met.
Car title loans for low income in Texas are quite popular. While these loans carry a higher rate of interest, they are relatively easy to obtain. Texas title loan cash amounts tend to be smaller, but that is just fine with most loan recipients. The loan gives these people the extra money they need to smooth things over until their next paycheck or tax refund check arrives.
Use your car, truck or SUV as collateral
Depending upon the lender, some car title loans are offered for owners who have equity in their automobiles. There are also car title loans for low income in Texas that offer these loans for vehicles that do not have clear titles. All no credit title loans Texas residents receive are typically for no more than thirty days at a time.
A lender will generally offer the loan applicant anywhere from 50 to 25 percent of the current value of the vehicle. With this procedure, the worth of one's “running vehicle” determines the extent of the loan. Car title loans for low income in Texas can range from as little as $100, all the way up to $10,000 depending upon the worth of the vehicle in question.
Some car title lenders have brick and mortar locations, along with corresponding web pages for online applications. In each case, one's application must contain such basics as name, address, telephone number and contact information. Once the application is accepted, the next step is to take a look at the automobile being used as collateral. One of our customer service reps will call you and talk about your loan term, interest rate, and loan length.
At this point the applicant must present their car at a storefront location. Along with a visual inspection to make sure the written description matches the vehicle in question, a company representative will require the official title to the car and proof that the vehicle has sufficient auto insurance to satisfy the state. A duplicate set of keys to the vehicle may also be required to complete the transaction.
When the loan is approved, the applicant receives their money in exchange for the title of their vehicle. The lending company will not return the title to the car owner until the loan is paid up in full. The car owner does however, still have the ability to use their vehicle for personal use during the repayment process.
Today's digital banking systems allow for several options to complete the repayment process. Applicants usually choose which option or options offer them the greatest degree of convenience. During the course of the loan, applicants may be able to change their chosen method with the approval of the lender.
Automatically generated payments: In the first option, scheduled payments are removed from one's bank account when payments are due. To obtain these automatically generated payments, the applicant must agree in writing so that these digital transfers can take place. The applicant literally gives the lender access to their bank account to complete the digital transaction.
Online payments: Loan payments are made through the loan company web pages. Applicants are asked to choose a private password, so that their loan information is private. A confirmation is then sent via email or text.
In-person payments: Some people feel most secure making their payments the old-fashioned way. Reoccurring payments are made at a storefront location through a teller's window, much like at a bank. This option allows applicants to pay back their loans with cash, personal check or with the use of a major credit card.
Title loan “Roll Over” options
If the loan applicant is not able to pay off the total amount within the 30 day loan period, lenders often choose to “roll over” the remaining amount of money into a new loan. While this works to stop one's vehicle from being legally repossessed to pay back the loan, it comes with its own financial consequences. Therefore, this option is not something that should be used indefinitely.
A “Roll Over” loan comes with additional interest and fees. This is in addition to the amount you current owe on the original loan. Unfortunately, this cycle of using one loan to pay off another can “snowball” interest payments into ever increasing amounts. This often makes it impossible to ever pay off the original loan in full within a reasonable amount of time.
If the contract is neither paid or renegotiated into a new loan, the applicant stands a strong change of legally losing their automobile. The lender may ask that a GPS (global positioning system) be installed on the vehicle. Some companies even use devices that will interrupt the vehicle starter from a remote location.
This means that even if the applicant tries to drive away with the vehicle or hide it in another location, it will eventually be found and repossessed. With a starter interruption device in place, the car owner will not be able to start the car and drive it at all. In either scenario, the vehicle can legally be driven or towed from wherever the car owner has it parked.
Advantages of a car title loan:
1. These loans are easy to apply for, both online and in person.
2. The approval and payment process can be as quick as one day.
3. Loan amounts are based on the worth of the vehicle and not income.
4. In a financial emergency, this may be one's only option.
Disadvantages of a car title loan:
1. With a vehicle as collateral, it can be legally repossessed by the lender.
2. Interest rates and fees are generally higher than with other loans.
3. “Rollover” options are possible, but may be expensive.
4. Until the loan is fully paid off, the lender legally “owns” the vehicle.
In all cases:
If one needs to make a late payment or “roll over” a loan, the lender must be contacted immediately. If the vehicle is necessary for family, work or school, the loss of the vehicle may be catastrophic. Should this be true, applicants need to weigh their finances carefully before using their automobile as collateral.
Title loan applicants need to make sure they understand the terms of any loans they undertake to pay back. This is true of all digital, as well as paper contracts signed by traditional means with any lender or lending company. Once signed, the contract is legal, valid and enforceable.
Texas Approval Does Not Need Proof of Income
Perhaps, you are strapped for cash and need cash quick. Consider applying for an online title loan. Title loans are basically a secured loan that uses the applicant's vehicle title for collateral. People with a less than perfect credit history, looking for a way to get a loan quick, without all the red tape or long waiting period are the best candidates for this type of loan. Getting cash at Texas Approval is easier than you might think. Here is more on the subject.
Applying For An Online Title Loan
People struggling with financial problems should realize that there is help available for them online. Certainly, applying for a traditional loan at a local lender is time consuming and stressful. The applicant must prove they are credit worthy. Next, the applicant must fill out numerous forms and answer a ton of questions about their finances. Usually, approval takes several weeks. However, applying for online loans at Texas Approval is less complicated. Filling out the online application only takes several minutes. The approval process is quick. Generally, you will have your cash within 24 hours.
Title Loans Advantages
Traditional banks make it difficult for people without a perfect credit score or credit history to borrow money. However, Texas Approval makes it a simple process to apply for an online title loan, even with no proof of income. Of course, there are several advantages associated with applying for the loans online. Here are a few.
- Loan amount is based on the value of your vehicle
- Loans are processed fast
- Borrow only the amount required
- No proof of income required
- No credit check required
- Use the loan for anything that you desire
- Apply online
If you are experiencing financial difficulties, and need cash quick, apply online now.
Car Title Loan Laws in the State of Texas
Car title loan lending is controlled at the state level, meaning each state writes its own laws regarding the practice. Some states have outlawed auto title loans altogether. Texas, on the other hand, has some of the most lenient laws in the country.
According to The Center for Public Policy Priorities, Texas allows lenders to charge as much interest as they like, which means you must be selective when choosing a lender. Some may charge you as much as 800% annual percentage rate, or APR, which is extremely high. Others charge considerably less.
Texas law demands that lenders display how much interest they charge in a very noticeable place in their offices and on their websites. In addition, your lender must fully explain your interest, lending fees and payment plan before you agree to the loan. If you're not happy with what you're hearing, don't sign the paperwork and walk away from the loan.
When you need title loan help, do your homework before making a commitment. Ask questions. Compare prices and interest rates. You have the right to get a loan from the best, most affordable company in the state. And since Texas title loan lenders don't check your credit, you won't be hurting it while you're shopping!