1/2/2023
Just like quick loans, car title loans have become a popular form of financing because they are so easy to arrange.
Like other ways to get money, you can access this resource through online and offline lenders. Want to find one near you? Here's how to find one and what you need to know about these loans.
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Car title loans near me
If you want to find a car title loan lender near you, the easiest and fastest way is to use this map below. In it, in addition to finding the closest ones, you will be able to check their hours, phone number and how to get to them.
Another option to find lenders that offer car title loans near you is to look for one of the most widespread lender networks in the United States.
One of the ones with the most establishments throughout the country is LoanMax, which offers its services in 15 states. You can use the locator on their website to find them.
Other chains with a multi-state presence are TitleMax and American Title Loans, with search engines on their websites to help you find a car title loan near you.
What is a car title loan?
Car title loans offer money to those who already own a paid-off vehicle or have sufficient equity in it.
The ownership document of this equity serves as collateral for those offering this type of financing. Unlike unsecured personal loans, this one has collateral.
Often labeled as predatory, the short time you are given is accompanied by very high interest rates, the minimum of which is in the order of 100% per annum on the amount granted.
Terms and Amounts of Car Title Loans
Car title loans are also characterized as quick loans or mini-loans, since the term to repay the money is usually 15 to 30 days.
The amounts you can apply for can range from $100 to more than $10,000. The finance company gives you 25% to 50% of the value of the car and keeps the title as collateral.
Among the reasons why Americans and residents take advantage of this option, 3 basic reasons stand out:
- No need to be employed or demonstrate a stable source of income.
- The requirements for approval are less strict, speeding up the process.
- It does not matter if you have a bad credit history because they don't check your score and the loan is guaranteed by your car.
In which states can you apply for a car title loan?
It is also important to know that this type of financing is only available in 22 states in the U.S., but in 6 of them the lenders that offer this service take advantage of legal loopholes to avoid prohibitions.
Therefore, in the end they are only 100% legal in these 16 states:
- Alabama
- Arizona
- Delaware
- Georgia
- Idaho
- Illinois
- Texas
- Mississippi
- Missouri
- Nevada
- New Mexico
- South Dakota
- Tennessee
- Utah
- Virginia
- Wisconsin
Car title loans requirements
Of course, in order to access the money from these loans, you must own a vehicle and the respective document that proves that you are its owner.
In addition, the car must meet certain minimum requirements, which will depend on the lender, and which are usually the following:
- The car must not be very old, normally it must be less than 10 years old.
- The car must be insured.
- You must have passed all the corresponding revisions required by law.
On the other hand, there are requirements that the applicant must meet, although they are lower than in bank loans, there are also minimum requirements:
- You must reside legally in the United States.
- You must be of legal age, in some entities they even ask you to be older than 21 years old.
- You must have an identification document, such as a driver's license or passport.
- You must have a SSN or an ITIN.
How to apply for a car title loan?
The application process can be done by visiting a physical office or through an online platform. Generally you walk into the office, show the required documents, sign a few papers and walk out with the money via check, direct deposit or MoneyGram.
Here is the documentation you will need:
- Legible title of the car.
- Proof of auto insurance.
- Current photo identification (ID).
- Other documents required by the lender and another set of keys.
What are the interest rates on car title loans?
The interest rate on car title loans is quite high. The finance charge usually includes both fees and interest, which can be as much as 25% per month of the amount requested.
In many cases, this interest rate can be 300% APR per year or more, which is similar to payday loans and other options for people with bad credit.
Let's say that after the appraisal on the value of your car, you take out a personal loan for $1,500 with an interest rate of 25% and payable in 30 days.
This means that when it's your turn to pay the money back, you will have to pay $1,875. If you can't pay off the debt, you still have the alternative of doing a rollover.
Pros and cons of cash for car title loans
When you have a bad credit score, it is preferable to make the necessary adjustments to your finances before continuing to borrow.
Although it sounds simple, the need for money may lead you to consider a car title loan as your only option. However, you must be completely confident that you will be able to pay the money back.
Among the good things about car title loans, we can mention:
- You can get the money in less than 30 minutes.
- You don't have to leave your vehicle with the lender, you can keep driving it.
- The requirements are minimal.
- You can get money with bad credit or even loans with no credit check.
On the downside, you should beware of the possible consequences:
- Statistics say that 20% of people who use these personal loans lose their car. This happens if you default and can't pay the debt.
- 80% of people who resort to this resource, make at least 4-5 rollovers, which makes the cost end up being very high and also hurts your credit score.
There are better alternatives to auto title loans that you can turn to if your economy is not in the best condition.
And if you want to improve your score or start your credit history, it is better to go for secured loans, which offer much more favorable conditions.
Español: Préstamos por título de carro cerca de mí