Are you interested in getting a Car Title Loan with LoanMart but are curious about some of the laws that surround its Car Title Loans? Let’s take a look at some of them:
- LoanMart may be the actual lender or it may act as a broker depending on your market. When it comes to loan applications, everything must be subject to the company’s credit criteria. This will include property that is in acceptable condition that will serve as the collateral. This simply means that a “lemon” of a vehicle has a low chance of being accepted as a loan collateral because it does not have a high chance of meeting the required criteria. After all, LoanMart also has to protect its business and service by catering to loan applicants who have vehicles that will meet a minimum asking price should these require repossession.
- The minimum loan amount will vary depending on the state where the application was filed. LoanMart is one of the few top-tier loan providers in the country, and this is evidenced by its strong presence in several states (as opposed to being in only one state, which is the norm for many smaller outfits). However, each state is guided by its own distinct set of laws which may have a direct impact on the loan amounts that LoanMart can state.
- Customers are required to demonstrate their ability to repay their loan. Prior to being approved for the loan, LoanMart will need evidence that you can commit to the monthly fees. Usually, this can be done by submitting your proof of income. If you are unemployed, there might be additional documents that you need to submit such as bank statements or proof of financial capacity if you have any assets. Getting a co-borrower can also help.
- The right to rescind must be made by midnight of the sixth day of the loan. If plans change and you suddenly decide to discontinue the loan, then you need to put it into writing and send it to LoanMart by the stated deadline. A day after submitting the rescission notice, any monies which you have received should be returned. These will include whatever fees that were paid in your behalf (as the customer).
- Loans applied for are primarily intended for personal use, family use, or household purposes. LoanMart does not provide services for student loans, despite being a registered financial lender (which is a state required application).
- Delays in payments must be subject to interest rates and other fees. When you agree to the contract, you are not only agreeing with the loan payment schedule but also to the stated interest rates and other penalties that you might end up paying if you delay your payments. LoanMart required nothing short of adherence to the rules and regulations of all loans, so any lapses on the part of the client will require penalties. Should you continue to fail your duty to meet your monthly payments, you not only run the risk of having your vehicle repossessed but also have your loan and interest amount balloon to a more significant number.
There are other laws, rules, and regulations that you will learn when you actually apply for the loan itself, but these six are basic enough for any would-be loan applicant. As such, here are some suggestions that you can follow to ensure that your loan application progresses smoothly:
- Ensure that you read everything stated in the documents pertaining to your loan application. A lot of potential trouble can be avoided if you really go through each line and ensure that you understand what you are getting into.
- Always ask about things that are not clear to you. Loan officers actually like it when their applicants ask or require clarifications about loan stipulations. It means that they are dealing with people who are serious about wanting to meet their end of the agreement, so they happily describe, restate, and thoroughly explain things until their client understands it.
- Be diligent with your payments. The best thing you can do is to pay for your loan on time, every time. Being diligent with your payments is the simplest way of fulfilling your loan obligations, and all it takes is the same amount paid at the same time each month up until the fulfillment of your loan.
- Inquire about penalties and any actions that will help mitigate undesirable situations that may arise. Part of knowing what you are getting yourself into is asking about possible circumstances that you might face at any time throughout the course of the loan.
- While you have every intention of paying for your monthly fee, you cannot avoid the possibility of negative circumstances that may pop up and have a direct effect on your capacity to pay.
- If what you learn is okay with you, then you can go ahead and continue with your loan. Furthermore, it is also important to inquire about how LoanMart can help assist you during these possible times.
- Make the necessary lifestyle changes so that you can commit to regularly paying for your loan. If you think you will have to tighten your budget for a number of months, go ahead and do that. After all, a loan is not forever for as long as you are able to meet the required payments on time. See which areas of daily living you can scrimp and save on not just to pay for the monthly amount but also so you can set aside some extra funds in case you are able to make advanced payments.
- Make it a goal to make advanced payments. While it is not necessary to pay extra, it is a good habit worth getting into when it comes to your loan because it will shorten your paying period and help you avoid any extra interest rates and fees that accompany each month that you need to pay for. Even one extra month can already make a significant difference. If you find yourself having some money left over by the end of the month after paying for your utilities and other household essentials, set it aside and add on to it until you come up with a total that equals at least one month’s worth of fees.
- Find ways to make extra money on the side. Explore any possible side ventures that you can get into during the course of your loan payments because anything you make on the side can help meet future fees. On the other hand, if you automate your loan payments from your bank account each month (meaning it will automatically be deducted once your salary comes in), the extra money you make on the side is a good buffer for any unexpected expense that can come up in the near future. These can be fees for your child’s football kit in school, a contribution to your parents’ wedding anniversary treat along with your siblings, a new pair of office shoes should yours break and you have no backup, and anything in between.
This information will surely come in handy when you finally decide to take out a car title loan! Car title loans are very useful in situations that need a good amount of money that you do not quite have. This is especially true in situations that are time-sensitive, such as sudden medical emergencies unexpected home repairs, and other situations of the same kind.
In a car title loan, you use the car title or the lien of your vehicle as the collateral for the loan. As for the amount that you will be entitled to, that will all depend on the market value of your vehicle and your ability to repay the loan. After submitting the necessary documents, a loan officer from LoanMart will assess your vehicle and determine a maximum loanable amount based on the best price that your vehicle will fetch in today’s market. If everything is already agreed upon between the person applying for the loan and LoanMart, then the company can proceed to transferring the agreed-upon amount.
One of the things that many people love about this kind of loan is the convenience that it brings. First, there are very few documents that are required – the car title, proof of income and residence, filled-out application form, and the required photos of the vehicle. Second, there are numerous ways to submit your application and confirm your loan – by phone, through the web, and even through your smartphone, among others. And third, claiming your cash is also a very convenient matter because there are numerous ways to accomplish this without needing to pass by the office and fall in line.