Just as we know that title loans are not allowed in some states, and some states where it is allowed, there are certain laws and regulations guiding the operations of title lenders. Here we will take a look at some of the main facts you need to know about how title loans work in Texas.
Just like in every other states, residents of Texas do face several financial challenges as they go about their daily lives, from health care fees to housing expenses, and car repairs among others. These financial responsibilities leave you with the need for instant cash and getting the needed cash can sometimes be a tough task especially if you applying for loans in banks. Banks require that you have a good credit score before you are considered and you must also have a steady source of income with proofs.
When you apply for a car title loan, you use the equity of your car in exchange for a loan using the title of your car as collateral. Getting a car title loan is easy because it requires less stringent processes. Title loans can be applied for online in Texas and you will get approved in less than hour.
Now let’s answer that question; “How does title loans work in Texas?” we will also provide vital facts you need to know about the way title loans work in Texas.
· Easy to Qualify and Get Approved
The requirements needed to qualify and secure a title loan is less than what is required from you when you apply for traditional loans. You require less personal information and paperwork. The most important requirement to be met when you apply for a title loan is that you should be able to show proof of ownership of your car, and you must have equity in the car. All kinds of vehicle such as motorcycle, RV, classic car, SUV, or truck can qualify to be used to secure a title loan in Austin, Texas. You must also be at least 18 years old to apply for a title loan in Texas.
· No Credit Checks
Title loans are specifically made for people with bad credit and as a result of this, there are no credit checks carried out by your lender when you apply for a title loan. Hence, your bad credit will not be a barrier to getting a car title loan in San Antonio.
· Your Income Matters
The higher your income, the higher your chances and the larger the loan amount you can get when you apply for a title loan.
· Your Car is Collateral
The title of your car serves as collateral to securing a car title loan. This enables the lender to assume possession of your car while you are paying off the loan. If you default, your lender can decide to repossess your car to cover for the loss.
· You can Get a Significant Amount
With title loan, you can get a significant amount depending on the value of your car. The higher the value of your car, the more loan amount you can get. The value of your car is determined by the mileage, age, model, and make.
In conclusion, it should also be stated that title loans come at high interest rates, you can drive your car around while you pay off the loan, although some lender might install a GPS tracker device, and as soon as you pay off the loan, your title is returned to you and your car becomes yours. Read more about title loans from https://www.thebalance.com/car-title-loans-315534.