How Do Title Loans Work in Texas? Everything You Need to Know
Title loans work the same way in Texas, as they do in the rest of the US. However, the laws applicable on title loans can vary depending on the state they are based in. In Texas, there aren’t many regulations on these loans, as lenders and borrowers are allowed to set terms that they agree to. Before we discuss how car title loans work in Texas this is what you should know.
Title loans are loans that you can get with your car’s title held as collateral. These loans are targeted towards people with bad credit who can’t get a traditional loan. Title loans can be used for emergencies such as sudden medical bills, auto or home repairs, and unexpected travel requirements. Unlike online payday loans, you can borrow more and for a longer time period if you get a title loan online.
How Do Title Loans Work in Texas
Under Federal Law you have to be at least 18 years old to be eligible for a title loan, naturally, this applies to Texas as well. However, in the State of Texas, there is no cap on the amount you can get through a title loan, and is at the lender’s discretion.
Since the lender will hold your car’s title as collateral, they will first assign a market value to your car before approving a loan amount. First, the lender will value your car by looking up its make and model on a vehicle value guide. The lender’s representative will then inspect the interior and exterior of your car to check its condition.
Your car’s market value will then be adjusted based on its condition. A percentage of the car’s value will finally be set as the amount of the loan you are eligible for; usually, this amount is around 50% of the car’s value.
The rationale for the low amount of the loan in comparison to the car’s value is to reduce the lender’s risk. In case you do not pay the loan back on time and cannot get another extension, then the lender will repossess your car.
At that time, if you are still unable to pay it back, the lender can sell your car (since they have the title), and pocket the profit to repay the loan.
Requirements for a Title Loan
In order to get a title loan, you first have to make sure that the car’s title is in your name. If it isn’t, the DMV can transfer it for you. Second, you’ll have to make sure that the car is lien-free, meaning that there is no case or outstanding claim against it.
Texas Car Title and Payday Loan Services, Inc.
If you live in Texas, you can get a title loan from Texas Car Title and Payday Loan Services, Inc. Apart from title loans, we also offer online payday loans and installment loans.
Benefits of Title Loans
Easy and Fast
The main advantage of title loans is that they are easy to acquire and ensure fast payment. With Texas Car Title and Payday Loan Services, Inc., the whole process is hassle-free and takes just 30 minutes. All you have to do is to fill out an online application. Once your loan has been approved, the cash will be transferred to your account on the same or next day.
Bad Credit Accepted
Another advantage of title loans is that you do not require a strong credit history. No credit history at all is accepted as well.
Keep Driving Your Car
If you get a title loan, you will be free to use your car as long as you keep on making the payments. You will have to ensure that the car is in your name and lien-free, meaning there is no outstanding claim against it.
How to Acquire Texas Title Loans Near Me
In order to acquire a title loan, you can either visit a store the old-fashioned way or you can go online. This is the step-by-step process for acquiring car title loans online:
- Visit texascartitleandpaydayloanservicesinc.com to get started
- Fill out the online form on our website
- Once you are finished, you will get a call from a representative who will ask you to visit a location near you
- You will have to bring the car’s title and your driver’s license or ID
- The representative will check your car and let you know the loan amount you are eligible for
- Once it is done you will get the amount deposited in your account the same or the next day
Knowing your options when bad credit is factor, is a great way to secure the money you need with a title loan.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.