How Do Title Loans Work?
When you’re in a tight financial situation, it can be hard not to feel alone, anxious, and desperate. At Your Loan Depot in Texas, we’re here to provide you with car title loans and payday loans that can help you can get back on your feet. No matter the financial emergency you’re experiencing, we hope we can help. From our blog, you already know the benefits of using a payday loan in a financial emergency. Because there’s a lot of confusion about title loans, in our blog today we’re going to briefly and simply explain what a title loan is.
What is a title loan?
In a car title loan, you use your vehicle title as collateral in order to get the loan and you pay the lender a fee. You must own the vehicle and have its lien-free title in order to do so. If you were to get a title loan, you would temporarily surrender your vehicle title (this could be to your car, truck, ATV, RV, or boat). Once you repay the loan, the vehicle title is returned to you. Your vehicle is never out of your possession. This is important to note, so that you know you can still get to work and other activities even though you used a car title loan. If you default on your payments, the lender is legally permitted to repossess the vehicle and sell it in order to repay the outstanding debt.
- The amount of money you’re able to borrow will depend on the title loan company and what your vehicle is worth.
- These are generally short-term loans, meaning that they’re scheduled to be repaid in less than one year and often as quickly as 30 days.
- Auto title loans typically carry higher interest rates than other credit options.
- Title loan applications can be quick — at times taking as few as 15 minutes — because lenders don’t always check your credit score or history and primarily considers the condition and value of the proposed vehicle.
How do you pay it off?
Payment terms and options will vary by state, product, and case. Before you hand over your title, make sure that you’re comfortable with the established regulations and that you’ll be able to pay it off on time. You can accrue interest and other fees the longer you wait to pay it off, so be aware of what you’re getting into from the start and make a plan of action. You don’t want to be out of cash and a vehicle a year from now.
Your Loan Depot
When you have unexpected events or need extra cash for a special event, don’t hesitate to work with us. At all of our locations throughout Texas, our title loan services will allow you to borrow up to $10,000 based on your collateral.
- After you repay your loan in full, your vehicle title will be immediately returned to you.
- We offer a 72-hour cancellation period if, for any reason, you decide the auto title loan isn’t for you.
- We require vehicles to be in working condition before we agree to lend you money.
- We offer a 30-day payback policy.
- All loans are subject to approval and not all applicants will qualify.
- We’re licensed by the Texas Office of Consumer Credit Commissioner.
At Your Loan Depot, we specialize in personal relationships. Whenever a need arises, we hope you’ll think of us for payday loans and car title loans. We aim to be a title loan company you can trust. Call, email, or visit any of our locations today to ask questions about and fill out a title loan application. Eliminate stress from your life and get cash now.