There are a few different types of loans available to people with bad credit, like a payday loan. One of the most effective ones is called a car title loan. A car title loan is a short-term loan that uses your car title to secure the loan. It provides borrowers with many of the same advantages as other short-term loans, like:
- No lengthy application process – you may be able to get your money in as little as one business day3
- Competitive loan terms – Because title loans are secured, you are often able to get access to more money, at a better interest rate, for a longer repayment period
- Bad credit okay – Lenders are more interested in the value of your car and your ability to repay your loan than your credit history
Because you’re using your car title to secure your loan, you can usually get more money, at a better interest rate, and a longer repayment time, compared to something like a payday loan.
How much money can I get for a car title loan in New Mexico
Car title loans are governed by the New Mexico Small Loan Act. Because of this, the maximum loan amount you can get in New Mexico is $50,000. That said, there are a number of other factors that will actually determine how much you’ll be able to borrow1:
- Value of your vehicle
- Loan Terms
You can’t borrow more than the value of your car. The actual amount you will be able to borrow will be influenced heavily by your ability to pay back the loan1.
What do I need to get a Title Loan?
There are only a couple things you need to get together to apply for a title loan:
- Qualifying title for the vehicle
- Proof of Income
- Proof of residency
- Photos of the front, back, and sides of vehicle
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
What is considered proof of income for a Title Loan in New Mexico?
Many people believe that a paystub is the only way you can show proof of income when applying for a title loan. However, there are actually a number of other easy ways to show that you can pay back your title loan, for example:
- Workers’ Compensation
- Social Security
- Settlement/Court-Ordered Award
How do I get a copy of my vehicle’s title?
It may be possible to get a duplicate copy of your car title from your local Department of Motor Vehicles (“DMV”). Some DMVs may even be capable of providing you with an expedited title. Depending on the circumstances, LoanMart may be able to direct you to the nearest DMV capable of helping you, or they may even be able to help you directly with your expedited title loan. You may also be able to reduce the wait time for your loan if you are able to add LoanMart as a lienholder at that time.
How much interest can I be charged for a Title Loan in New Mexico?
New Mexico has no laws regarding the amount of interest you can be charged on a car title loan. However, being charged 25% per month is not unusual.
What happens if I don’t pay back my title loan in New Mexico?
If you are unable to pay your title loan back by the end of your loan term, you should contact your lender immediately. They may be able to extend the terms of your loan. If they do, you will be responsible for paying any interest or fees due at the end of the loan. The balance of your loan will be rolled over into a new loan, with its own interest payments, etc.
If you fail to pay back your loan, your car can be repossessed. New Mexico doesn’t have a right to cure period during which you can pay the balance of your loan. Once your loan goes into default, your lender can repossess your car and sell it without notice.
How to get a Title Loan with LoanMart
A car title loan can be a great way to get money in an emergency fast. You can use your qualifying car title in your name to potentially be eligible for up to $50,0001. You can also take advantage of LoanMart’s streamlined registration process, meaning the time between registering for your loan and receiving your money can be 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 LoanMart store
- Call us at 1-877-787-2349
- Sign up online without leaving your home
Once you’ve decided how to get in touch, all you have to do is follow these steps to get the money you need1:
- Fill out the registration form
- Submit your important documents to your LoanMart representative
- Sign your LoanMart agreement
- Collect your funds!
Now that you know a little more about bad-credit auto title loans in New Mexico, you can keep unexpected expenses from derailing your budget. Reach out to LoanMart and let them help get your budget back on track1.