Car Title Loans are no riskier than renting an apartment. If you do not pay your rent and avoid the landlord, you surely will get evicted. If you pay your rent on time, then you can simply rest easy knowing you are safe. It all depends on your intent. If you borrow money from any source and have little to no intention of paying it back, and you put your car up for security, you can count on the car being returned to the lender to pay off your loan. The intent of LoanMart is to have you pay off your loan, get your title back and be happy that you made a wise decision and come back again should you need fast cash.
Defining a Title Loan
An auto title loan is one of the most common types of loans available in the market today. What makes it a hot product in the industry is that, while it may review your credit history and income background, your credit rating will not become a factor in the approval process. Because of this factor, auto title loans tend to be a swifter process than financing through another financial institution. An auto title loan sees you putting up the title of your vehicle as collateral during your loan payment period.
How Auto Car Title Loans Work
It shouldn’t be a surprise that the asset that customers have to relinquish as collateral for their auto title loan is the title to their vehicle—it’s in the title.
Simply stated, a car title loan has very few steps. You have to have a vehicle that has some value. If you do (and we will tell you the value), then we will need you to put LoanMart as the lienholder on the title. Then we will ask for a few things like proof of income (which is not saying you have to be employed), proof of where you live and a few other very minor things. Once this is done, and you are approved by the underwriter (takes minutes), you are ready to go get your money and sign the agreement.
Car title loan amounts vary, depending on the programs offered by lenders. Similarly, there are various loan repayment schedules that are available.
Things to Remember
Now that you know the groundwork a little bit, you are probably more knowledgeable, armed and ready to apply for a car title loan—knowledge is essential, confidence is key. To make sure that you get the most out of the borrowing experience without any hiccups with your assets, here are some helpful tips you need to keep in mind:
Repayment Schedules & Application Requirements
To submit a full application, a valid form of identification will be needed, as well as proofs of income & residency. The vehicle (as well as the title) comes into play as a means to determine how much your loan will be worth when compared to your income. Your representative will walk you through the steps of it all and even explain to you what repayment schedules would work best for you, in terms of interest and length; you may even find out how to pay off your title loan quickly and early. It will only take you a few hours or less to complete your car title loan application.
Everything’s easier with the digital revolution, as applications and payment schedules can be made online—this will save you the hassle of going to a brick-and-mortar office and lining up for long hours just to file it.
Interest Rates and Fees
None with LoanMart. There are some loan providers that charge processing fees. Of course, these are not usually stated in their promotional materials such as online ads, brochures, and infographics, among others. Should your loan application be approved, you would no longer be surprised to be charged a processing fee. This is not the case with LoanMart.
Many loan providers bank on the loose requirements to take advantage of desperate borrowers. Because of these greedy lenders, the usual annual percentage rate (APR) on a mere one-month car title loan is at 300%. However, do not be bothered. There are still a number of loan providers (such as LoanMart) that offer the lowest interest rates, upholding the value of fairness to borrowers. Keep in mind that you’re already offering a collateral, which means that there’s no need for lenders to impose tremendously high interest rates.
Loans and Laws
Opt for LoanMart that strictly adheres to federal and state laws. Obedience to these laws is a sign that a lender only has the best interest of borrowers in mind in terms of practices within the industry.
Admittedly, some title loans and their brokers are not closely regulated. This makes it easier for some loan providers to creatively get around the laws governing the industry without actually breaking anything. A lending company originally located at a particular state may refer you to one of its lending arms located outside the limits of the federal and state laws, offering more viable financial solutions to you.
Are Title Loans Safe?
The ultimate truth is that no type of loan is ever safe unless you are willing to commit yourself into making good on the terms and conditions you signed up for. As long as you are a responsible borrower who fully understands your financial decisions and that you have a trustworthy loan provider who will help you out in every way possible, there is no need to worry about getting caught in the middle of grave financial burden. While there may be a couple of opportunists willing to take advantage of your desperate situations, there are still a lot of loan providers whose only goal is to help you get back on your stable financial footing.
At LoanMart, we want to help you find the best solution to help you get the most out of your vehicle and to make it through a tough situation. To get started on your application today, visit our website or call us at 844-237-5530.