Title loans

A title loan (title pawn) is a short-term loan in which borrowers use their car title as collateral to secure the loan.

Borrowers give the lender the title to their vehicle in exchange for a loan amount. Once the loan is repaid, the title is returned to the borrower.

Typically, anyone who owns a vehicle with a clear title can qualify.

No, title loans are often sought by those with poor or no credit, as the loan is secured by the vehicle.

Most lenders offer both online applications and in-person options at their branches.

The primary requirement is a clear vehicle title, which means there are no liens against it. Additionally, borrowers often need to provide proof of income, valid identification, proof of residence, and sometimes proof of insurance.

It depends on the lender. Some title loan companies will provide loans on vehicles with salvage titles, but they might offer a reduced amount compared to vehicles with clean titles due to the potentially decreased value of the vehicle.

Some lenders offer online title loans without a credit check or physical vehicle inspection. Instead, they might ask for photos of the vehicle or use online databases to evaluate its value.

Yes, one of the appeals of title loans is that they don't typically require a credit check. Your vehicle acts as collateral, so your credit history is less critical to lenders compared to unsecured loans.

The amount varies, but it's often based on a percentage of the vehicle's appraised value. Typically, borrowers can get up to $10,000.

Lenders typically assess the vehicle's age, condition, and resale value to determine its worth.

Some lenders may provide loans if you have a source of income, even if it's not from employment.

Yes, in most cases, borrowers can continue using their vehicle while repaying the loan.

Interest rates can be high, often much higher than traditional bank loans.

If a borrower can't repay, the lender might offer to "roll over" the loan into a new one. If the borrower still can't repay, the vehicle may be repossessed.

It depends on the lender, but many do not have prepayment penalties.

Yes, options might include personal loans, payday loans, or installment loans.

It means the car is fully paid off, with no financial obligations or claims from other lenders against it.

You should contact your local Department of Motor Vehicles (DMV) to get a replacement.

Many lenders offer title loans on various vehicles including motorcycles, boats, and RVs.

Always read your agreement carefully. Some lenders may have processing or road-side service fees.

The lender will typically sell the vehicle. If it sells for more than you owe, you get the excess. If it sells for less, you might owe the difference.

Always shop around, understand the terms, and read reviews about the lender.

Some lenders might offer refinancing options, allowing borrowers to get a more favorable interest rate or loan terms.

If the lender reports to credit bureaus, then yes. Non-payment can negatively impact your score.

In many cases, borrowers can receive funds the same day they apply.

It's risky and not advised, but some people take out multiple title loans using different vehicles as collateral.

Some lenders may require the borrower to have comprehensive and collision insurance.

It's challenging, but some lenders might offer a loan if the outstanding amount on the vehicle is small.

Research lenders, read reviews, and always read your loan agreement carefully.

The primary risk is the potential loss of your vehicle if you can't repay the loan.

Some lenders might be open to negotiation, but it's essential to discuss and clarify terms before signing an agreement.

You can file complaints with your state's Department of Financial Institutions or Attorney General's Office.