If you find yourself holding a bill you weren’t expecting, a title loan can be a great way to get emergency funds to keep your financial plan from derailing. They may be easier to get than traditional loans because car title loan lenders aren’t usually interested in your credit score, only in the value of your car and ability to pay. Because of this, you may get a title loan without a lengthy application process. All you need is a qualifying car title in your name. Now that you know that, learn how exactly to get a title loan and who can make them.
Who can make Title Loans?
Lenders with a state license can make a title loan. Getting the license typically involves things like taking an exam and paying a fee. There is normally an annual fee to renew as well. Once the lender has the correct license, they are allowed to enter into contracts with borrowers, stating that they will provide them with a certain amount of money in exchange for putting a lien on their car until the loan is repaid.
What are the laws surrounding Title Loans in Alabama?
As of the 1993 Alabama Pawnshop Act, title loan lenders have been classified as pawnbrokers and are subject to the laws laid out in the act. The rights and duties of lenders and borrowers related to title loans are outlined in detail. For example, the borrower must attest that the vehicle isn’t stolen. It also requires that the lender provide certain information to the borrower, the monthly repayment schedule and fees, for example.
How much can I get for my Title Loan?
This varies based on a number of factors, for example:
- Loan Terms
- Value of your vehicle
The greater your income and the more your car is worth, the more you may be able to borrow.
What do I need to get a Title Loan?
You need a few things to be able to apply for a title loan:
- Qualifying title for the vehicle
- Proof of Residence (Certain pieces of mail)
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Photos of the front, back, and sides of vehicle
- Proof of Income
What is considered proof of income for a Title Loan in Alabama?
Proof of income can be obtained through more than just a paystub. You can also use things like:
- Child Support
- Workers’ Compensation
- Social Security
How do I get a copy of my vehicle’s title?
You may be able to get a duplicate title through your local Department of Motor Vehicles (“DMV”), and some are even capable of expediting your title. LoanMart may be able to assist you in getting an expedited title or point you towards the nearest DMV that can help. If you add LoanMart as a lienholder at that time, it may speed up your loan process.
How much does interest cost for a Title Loan?
You cannot charge more than 25% interest per month on a title loan in Alabama. This means, if you take out a $1,000 loan, the interest on the loan may be up to 25%, or $250.
Are there any costs other than the interest for a Title Loan?
It doesn’t cost anything to apply for a title loan. That said, there may be additional costs associated with a title loan. Your lender should disclose this information during the application process.
How long do I have to pay my Title Loan back?
In Alabama, title loans have a maximum length of one month. Continuing from the previous example, if you borrowed $1,000 at an interest rate of 25%, meaning $250, you’ll have to pay back $1,250 (plus any additional fees) before 30 days has elapsed.
What happens if I fail to pay my Title Loan?
If you can’t pay your loan in time, your car may get repossessed. If this happens, the lender may sell your vehicle and keep all the proceeds, regardless of how much you owe. However, the right to cure in Alabama is 30 days. This means, you have a 30-day grace period after defaulting to pay the balance of your loan.
How to get a Title Loan with LoanMart
Now that you know a little more about how to get a title loan, you can see they are a great way to get funds in an emergency, without a lengthy application process. If you own a qualifying vehicle in your name, you potentially may be eligible for an auto title loan of up to $30,0001. LoanMart uses a streamlined registration process that may reduce the turnaround time on your loan to less than 24 hours3.
With our easy process, we give you three ways to contact us that make it convenient for you:
- Visit a participating location
- Call us at 1-855-422-7412
- Sign up online without leaving your home
Once you’ve figured out the best way for you to get in touch, all you have to do is follow these steps to get the money you need:
- Fill out the registration form.
- Submit your important documents to your LoanMart representative.
- Sign your LoanMart agreement
- Collect your funds1!
Now you know exactly what you need to do to get a title loan from LoanMart. Don’t let a sudden financial hardship derail your financial plan. With a few easy steps, you may sign up for a title loan with LoanMart and have the funds you need to carry you through a rough patch1. Once you receive your money, take care of your expense and get back on track.