A company based in Arizona said they have GPS systems installed on the cars so they can track the cars and shut them off remotely if they don't receive payment on time. That may be an extreme case, but these lenders take a customer's promissory signature very seriously. If you can't pay, they will come looking for you and your car. The concerns for having your car repossessed are obvious. How do you get to work, drop off the kids at school, pick up groceries or go out on the weekends without a car? As if those scenarios weren't bad enough, owning a car can be some people's biggest financial asset.
If the car is taken away, so goes the money it was worth.
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Some states have laws that force the lenders to pay you the difference of the loan once a lender has repossessed and sold your car, but some don't. It is possible to default on the loan and not get any money back for your car, even if you only borrowed a few hundred dollars.
This occurs because car title loans are also over-secured. Typically, the maximum amount most lenders will give you is 25 to 50 percent of what your car is actually worth. Some lenders won't take possession of a vehicle but instead take the customer to court for the money.
They then tack on court costs and finance charges on top of the existing loan amount. Many car title loan lenders defend their business practices by saying they offer loans to people who would otherwise not be able to gain financial assistance. Although this may be partly true, signing over one of your most valuable assets for several hundred dollars is not the only option. Other options may be paycheck cash advances from your employer, cash advances on credit cards, emergency community assistance, small consumer loans, or borrowing from friends or family.
If you find yourself contemplating a car title loan, check out these alternative options and read the information for yourself at www. If you still need to sign over your car for cash, educate yourself on the decision and know the possible repercussions of these types of loans. Share this on:. By Christopher Neiger. E-mail to a friend.
How Do Loans Work?
EmbassyLoans : This is a small lender that only offers auto title loans to consumers in the state of Florida. They let you customize your equity loan payoff time. CashbackAdvance Loans : With over 30 locations, Cashbackadvance is one of the largest car title loan companies in Southern California. Customers can expect a quick application process with cash in hand in less than one hour. TFC TitleLoans has been funding online title loans for well over 20 years. To qualify for a title loan you will need to be at least 25 years old with a or newer vehicle.
Loan payoff terms will be anywhere from months and applicants can see approval for a loan within an hour. Auto Pawn : Offering loans since , they say they are the oldest auto title loan lender in the country. Unlike most firms that fund online title loans, they offer a 30 day money back guarantee and no pre-payment penalty when you repay the loan.
Auto Pawn promises to have a quick one hour approval process with the lowest car title interest rates around. They have a different approach than a normal auto title company or unaffiliated third party lender. They claim to have a much easier approval process by offering a leaseback. A leaseback is much different from traditional auto title loans. You are selling your car to the company and leasing it back with the option for you to buy it back. Finance charges will be comparable to what you see with credit card rates.
High interest rates lock you into a cycle of debt
They facilitate funding for title loans online in a few select states. A CarTitleLoan : This company advertises as a credit access business that provides lending products and services. Car Equity Online : This online lender offers online equity loans in the state of California. They focus on the central part of California, even though they can take applications from the entire state. Per their website they are currently underwriting online title loans in 30 minutes or less. They will take care of any DMV work for you and may also work with credit union financing.
This amounts depends on the quality of the vehicle after inspection. They also have physical lending locations in many states. Loanmart is currently providing next business day funding in most states. TurboTitleLoans : Big lender funding online loans across the country. Auto Cash USA : They claim to have a large presence throughout the country with over locations throughout the nation. Applicants need to provide a clean title with government issued ID.
Been operating since and licensed in all the states they lend to. Also provides signature loans for California residents with good credit. Pink Slip Center : PinkSlipCenter is a direct lender that provides fast and easy pink slip financing in a handful of states.
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Amounts are based on vehicle status and ability to show proof of income. They also offer motorcycle and RV title loans. They claim to have some of the lowest interest rates with no minimum loan term. Cashmax will also let you complete the application process over the phone.
Smart Choice Loans : Smart Choice has been in business for over 10 years and funds online title loans for consumers in the South. It looks like they focus on South Carolina and Florida. They will let you apply for financing online and you can get your cash that same day at any of their retail locations. BroadStreet features payment terms that go as short as 30 days and as long as 3 years. ACarTitleLoan : Funding long term title loans online since ACarTitleloan is one of the longest serving title loan companies around. As of they feature online title pawn loans in Arizona, California and New Mexico.
They have a pre-approval process which should not last any more than 15 minutes. The rule applies to certain auto title loans with repayment terms up to 45 days and requires lenders to:. Although that means your options are even more limited now, it can prevent your financial situation from getting worse. If you have bad credit , there are several ways to get the cash you need without putting yourself in a precarious position. To avoid getting sucked into a vicious cycle of crippling debt, here are four ways to get quick cash.
Selling old cellphones, unused gift cards, and items sitting in storage can help you rack up extra cash fast. Companies such as LaborWorks , Labor Finders , and PeopleReady can help you find day laborer jobs that pay at the end of the day or week. If you already have a day job, consider asking your employer for an advance on your paycheck.
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You repay the advance when you receive your next paycheck. The company simply asks that you pay what you think is fair for the advance. But keep in mind that a bad exchange can damage your relationship, so avoid taking advantage of them. You also can reach out to creditors to see if you can get a forbearance on your bills for a few months. You might think personal loans require a good credit score, but some companies specialize in personal loans for people with bad credit.
The interest rates for these loans can be high but nowhere near as high as interest rates for auto title loans. Also, their repayment terms are more flexible, giving you more than a month or two to pay off the loan. As the data shows, the predatory nature of these loans puts many consumers in a worse financial position than they were in previously.
The APR ranges from 6. Your APR will be determined based on your credit at the time of application. The average origination fee is 5. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.
All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. All reviews can be reviewed at reviews. The time it will take to fund your loan may vary. You may be asked to provide additional documents to enable us to verify your income and your identity.
This rate includes an Autopay APR reduction of 0.