Do you need some emergency cash in Texas? If you want a convenient and fast loan with a simple application process, then car title loans might be the best option for you.
What makes it more convenient is that title loans happen to be easier to get than conventional loans (like a bank loan) because collateral is not a crucial factor in their approval process.
If you're considering that a car title loan is the best option for you, you might be thinking what the criteria are for qualifying for one and how they really work. This article explores everything you need to know about car title loans in Texas.
A car title loan is a special type of secured loan. They are special in that they use the borrower's vehicle title as security for the borrowed cash.
The loan amount you qualify for depends on your car's value and your ability to pay back the monthly loan installments. That is why a car title loan's conditions are somewhat different from other, more conventional loans.
As long as you continue paying the monthly installments, you will still drive your vehicle throughout the loan period, even though it is used as security.
When you complete paying back the borrowed amount, the security on the property will be removed from your vehicle title and restored to you.
Getting a car title loan in Texas is very straightforward, and the requirements are pretty simple. You must own the car you will be using as security, and it must be in good condition.
The following are the documents that you need when applying for a car or truck title loan:
There are three things you need to consider about the structure of Texas car title loans:
Typical loan amounts vary from $400 - $5000, maybe more. The loan period will be determined by the amount you lent and the payment amount. Most lenders will let you modify your payment schedule, depending on your budget.
If a lender does not let you do this, it's best you look for another lender.
The lower the interest rates and fees, the more convenient it is for you. However, you should also take into account how the interest is calculated against the principal amount.
Is it compounded or simple interest? How often is it compounded?
When you qualify for the loan and sign the loan agreement documents, you're going to pass over your vehicle title, and the lender will place a lien on your vehicle and give you the loan in cash.
Remember, you can only redeem your vehicle title once after completely repaying the full loan. You may choose to renew the loan if you need the cash or get your car title back.
Let's look at some of the amazing benefits you will enjoy when you get a car title loan.
Most car title loan providers offer very competitive interest rates so that monthly installments remain low, usually much better than payday loans.
Therefore, loan installments won't have to be a financial burden to you. Car title loans are affordable so that many individuals can gain access.
Some car title loan providers give you two to three years to repay the loan so as to afford the installments. You will need to work that out with your lender.
When you apply for an auto title loan, your loan application will be processed within a few minutes. If you get approved for the loan, you could get the cash within one business day.
When you apply for an auto title loan, your credit score will not be checked. You also do not need a guarantor; your car is the only assurance needed for the loan.