What is a Title Loan?
A title loan is what’s called a “secured loan”. A secured loan? Ah, yes… that means you could borrow cash by providing your vehicle’s title as collateral. This collateral is what secures the loan. When you take out a car title loan, the lender will place a lien on your car’s title. It’s important to understand this step – a lien means that the lender will be on YOUR title. So at this point, you do not own your car outright.
Give me the cliff notes...
- People with poor credit may be more likely to get approved for a title loan than another type of personal loan because they can use their car title as collateral
- Based on the value of your vehicle, you may be able to borrow from $100 up to $25,000
- When you borrow a title loan, your lender’s name will be on your title
- Your title won’t be released until you pay your loan in full
- If you miss loan payments, the lender could repossess your vehicle (so it’s important to make payments on time!)
What are reasons to apply for a title loan?
- Unexpected medical expense
- Home applicance replacement
- Need more cash than a payday loan
- Don’t have accesss to other forms of credit
- Have poor credit
What are some alternatives to car title loans?
- Payday Loan: If you are only needing cash to get you by until your next payday, then you might conider a payday loan. However keep in mind that payday loans typically only go up to a max amount of $1,500.
- Co-Signer: A co-signer might help you qualify for a loan. Co-signers are responsible for the loan if you do not pay it back. So make sure you and the co-signer understand all of the risks before going this route.
- Explore Ways to Make Extra Money: If time is on your side then you might consider options to supplement your income like selling unwanted items, babysitting or freelancing.
What happens if I can’t make a payment on my title loan?
Since the lender will have placed a lien on your car, they have the right to repossess your vehicle if you default on your loan. If you have a title loan from Speedy Cash and you won’t be able to make a payment, let us know as soon as possible by stopping by a store or calling us at 1-888-333-1360. We may be able to extend your due date, work out a payment plan or refinance your loan. If you don’t contact us to work out one of these options your car could be repossessed.
Title loans are an expensive form of credit. If you have access to cheaper alternatives, that may be in your best interest.