If you’re in the middle of a world-shattering financial crisis, you may be considering loan options to offer some relief. You’ve heard of title loans, but you’re wondering, “How do title loans work in Louisiana?” Before we uncover the details of title loans, let’s first unpack how Louisiana is portrayed to the rest of the world.
When thinking about Louisiana, what comes to mind? Do you envision colorful festivals in New Orleans or the historical landmarks in Baton Rouge? Louisiana is a mecca of southern delicacies, rich culture, and historical dignity for most tourists. Although tourists regard the state as enjoyable, most residents may be experiencing a different reality. According to World Population Review, Louisiana has a poverty rate of 19.0%, the second-highest poverty rate in the country.
While Louisiana has the second-highest poverty rate, it ranked the 31st state with the highest rent out of the United State’s 56 states and territories. Many Louisiana residents are experiencing tremendous gaps between their monthly revenue and monthly expenses. What do you do when your bills outweigh your paycheck?
Most people rely on family and friends when they fall on hard times, but what about those who can’t depend on their inner circle? Do you rely on your savings for refuge when the financial burden is too much? If you’ve experienced one emergency after the next, your emergency fund eventually runs dry.
With minimal friends and no emergency fund, it can feel like you’re out of options when facing a financial crisis. You just received an unexpected hospital bill, and now you can’t put your calculator down because you keep crunching the numbers hoping something will change. Your fourteen-year-old wants to go to summer camp, and you don’t have the heart to tell them “No” for the third year in a row. Before you throw in the towel, it is crucial to understand your other options.
Title loans have been a great resource for borrowers needing emergency funds. Some lenders are not as forgiving toward borrowers with a compromising financial history. A past eviction, bankruptcy, or high credit utilization will often disqualify borrowers from more traditional lenders. Title loans allow borrowers to leverage the equity in their vehicle in exchange for emergency funds.
Do you own a vehicle that is paid off, or almost paid off? You may potentially qualify for a title loan.1 Continue reading to see if title loans serviced by LoanMart in Louisiana would be a good fit for your situation.
How Do Title Loans Work in Louisiana if You Have Bad Credit?
You may be asking yourself, “Do title loans work for me if I have bad credit in Louisiana?” You’ve identified that you are experiencing financial struggles, but you’re still unclear if a title loan is the best option for you. You may have less than stellar credit, so you may be apprehensive about applying for any loan. Let’s face it; this probably isn’t your first financial emergency. In the past, you likely used an emergency fund. When the funds ran out, you fell under the protection of your credit card. Now, you’ve exhausted your credit limit. Your credit utilization has increased, and your credit score plummeted. LoanMart understands that life happens, and it is nearly impossible to have a blemish-free financial record.
Most lenders rely heavily on financial history to minimize risks for loans. Collateral is used to secure title loans, which reduces the risk for the lender. Bad credit is not the primary determinant of approval.1
At the end of the inquiry process, a loan agent will review your credit history. This hard check typically impacts scores a few points. Get ahead of the curve and check your credit history before inquiring about a title loan. Experian allows customers to obtain a free credit report.
How Do Car Title Loans Work in Louisiana if My Car is Older?
Do you have an older car? You may be wondering, “If my car is older, do title loans still work for me in Louisiana?” Remember: a title loan uses the equity in a borrower’s vehicle to determine eligibility and the potential loan amount.1
Now, equity is one of those words you hear about often but may not know what it means. The market value of a vehicle also impacts its equity. Let’s dig deeper.
Equity: This is the difference between the current value of your vehicle and the amount of money you still owe on it (if at all).
- Positive Equity – With your vehicle, if the market value outweighs the amount still owed, this would be considered positive equity. Borrowers fitting this scenario are strongly encouraged to apply for a title loan. Typically, the more equity in a vehicle, the more money a borrower could potentially qualify for.1
- Negative Equity – Is your vehicle worth $7,000 on the consumer market, but you owe $7,500 due to interest rates and other fees? Negative equity is when you owe more on your car than what it is worth.
Market Value – The equity of your vehicle is also calculated by its market value. Market value is the amount of money a consumer may pay a dealer for a specific car. Several components impact a car’s market value; below are a few.
- Mileage – Cars with lower mileage tend to rank higher in value. High mileage indicates future maintenance.
- Condition of Vehicle – Most consumers are not looking for a car they have to take to the mechanic every month. Cars needing severe maintenance typically do not have high market values.
- Year of Vehicle – It is no secret that cars lose value when you drive them off a lot. This is because the vehicle is recategorized the moment you take it off the lot. Your vehicle goes from “new” to “used” in the blink of an eye, which changes its resale value. Each year there is a new car with better gadgets and functionality.
The year of a borrower’s vehicle could potentially affect their loan amount.1 Borrowers are encouraged to get an estimate with LoanMart’s loan calculator. Receiving an appraisal will give you peace of mind and clarity on your vehicle’s worth.
How Does the Title Loan Inquiry Process Work in Louisiana?
You may be asking yourself, “How does the title loan inquiry process work?” Just like with any loan, there are basic requirements borrowers must meet before applying. Title loans serviced by LoanMart can be flexible during the approval process, allowing borrowers from all backgrounds to inquire.1 There are three basic requirements when inquiring about a title loan.
- Must be 18 years of age or older
- Vehicle title must be in borrower’s name – The legal owner of a vehicle is the person who holds the title. In other words: you cannot leverage what you do not own. If you were gifted a car or purchased it from an individual, make sure the vehicle’s title is in your name. If the tile is not in your name, you will need to visit your local OMV and request a title change.
- Monthly income – One of the main components of approval is showing proof of a steady income.1 Below are a few ways to do so.
- Paycheck stubs
- Bank statements: This is perfect for the entrepreneur who has fallen on tough times. You’ve put all of your extra cash into your start-up. You are finally getting more clients, but it’s not enough to cover your personal expenses. Send in your bank statements as proof of income so that you could potentially qualify for a title loan.1
- Pension: You haven’t punched anyone’s clock in several years. The last time you visited an office building was to say your final goodbyes five years ago at your retirement party. Retirees could potentially qualify for a title loan if they collect a pension.1
- Child Support: The age-old phrase holds true, “It takes a village to raise a child.” Who is a part of your village? Do you receive court-ordered child support? Child support is also accepted as proof of steady income.
- Third-Party Employer: Inflation is not a nightmare we can wake up from; it is a part of our reality. Many people work for third-party employers to bridge the gap between income and expenses. If you work for DoorDash or Uber, send in pay statements as proof of income.
The inquiry process is simple, and most borrowers meet the basic requirements. Once you inquire about the title loan, you could potentially be preapproved.1 If preapproved, you can determine if you would like to move forward with the loan process. Below are the documents you can expect to send.
- Valid Government Issued ID – Photo IDs help lenders verify the potential borrower’s identity. Remember: a borrower must be 18 years of age or older, and a photo ID will help loan agents verify that information. A government-issued photo ID such as a passport or driver’s license will do.
- Vehicle Title
- Photos of Vehicle – Sending in pictures of your vehicle will allow loan agents to do a virtual inspection of your car. Go outside during the daytime and snap photos of your odometer, Vehicle Identification Number (VIN), and the exterior. Send over your images once you get the perfect angles and the best filter.
- Proof of Residency – Do you pay your utilities electronically? Don’t worry. Visit your mailbox for any utility bills that came in the mail. Water and electricity providers are notorious for sending physical statements. Utility bills typically display the address in the top left corner; snap a photo and send it in.
- Proof of Income
- References – In some cases, a loan agent will ask you to provide references. These can be personal or professional references, or both.
If you are inquiring about a title loan for the first time, it is recommended that you consult a professional. LoanMart has agents in place to answer any questions you may have. Below are common questions asked when inquiring about a title loan.
- What happens if I forget to make a payment?
- Neglecting to repay the loan could result in additional fees that will hurt your wallet in the long run. In some cases, cars are repossessed if timely payment is not received. Make sure to meet your payments!
- How much can I get from a title loan?1
- Loan amounts are determined by a car’s equity and market value, as well as the borrower’s income.
- Will I need a vehicle inspection?
- Loan agents can perform a virtual inspection once they receive the necessary photos of the car. An in-person inspection is not required.1
- Can I apply online?
- Potential borrowers are encouraged to apply online from the comfort of their own homes.
If you have more questions, please give our customer service agents a call today at 855-277-4847. They work extended hours six days a week just to be able to provide you with the best customer support.
Do I Receive Benefits When Applying for a Title Loan in Lousiana?
You may be thinking, “How do I receive benefits when applying for a title loan in Louisiana? In addition to consulting with a professional agent, title loans serviced by LoanMart have other perks borrowers can take advantage of. Below are just a few.
- Quick Funding3 – LoanMart understands the meaning of emergency funds. Borrowers who find themselves in a financial crisis don’t have weeks to wait for their cash. Some borrowers need to pay for their electricity before it is cut off, and others may need to get a loved one out of jail. In some cases, LoanMart allows borrowers access to cash in as little as one business day.3
- No Hidden Fees5 – Traditional lenders are notorious for bombarding their lenders with hidden fees and rates. LoanMart takes pride in being transparent with borrowers. There are no prepayment penalties and no hidden fees.5
- Convenient Online Process – Do you dread going outside and waiting in traffic? Most borrowers love applying from the comfort of their own homes.
How Does Applying for a Title Loan Work in Louisiana?
Now that you know how title loans work in Louisiana, you may be thinking, “How does applying for a title loan work in Louisiana?” There are three easy steps you’ll need to follow.
Step 1: Inquire about the loan.
Go online, or give a loan agent a call at 855-277-4847 and provide some basic information about yourself.
Step 2: Apply for a title loan in Louisiana.
Once it’s been determined that you meet the basic qualifications, you’ll be able to decide if you want to apply for the loan. You’ll send in your documents as mentioned previously, and a loan agent will review and verify your information.
Step 3: Get your cash.1
If you meet all of the qualifications, you’ll be able to receive your cash.1 You’ll choose your preferred method of payment.
- Direct Deposit
- Check in the Mail
Don’t wait to apply for a title loan serviced by LoanMart in Louisiana today!