How Do Title Loans Work in Texas? Everything You Need to Know
Do you need fast cash but have trouble securing a traditional loan? Title loans might be the solution for you, especially if you're in Texas. Here’s a comprehensive guide on how title loans work in Texas, how much you can borrow, and why they are a quick, easy option for those who own a car.
What are Title Loans?
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
Federal law requires you to be at least 18 years old to be eligible for a title loan, and this applies in Texas as well. However, in Texas, there is no limit on the amount you can borrow; it’s entirely at the lender’s discretion.
Since your car’s title serves as collateral, the lender will first determine your car's market value before approving a loan amount. The process typically involves the following steps:
- Vehicle Valuation: The lender assesses your car’s market value based on its make and model using a vehicle value guide.
- Inspection: A representative inspects your car’s interior and exterior to evaluate its condition.
- Loan Amount Determination: The car’s market value is adjusted based on its condition, and a percentage—typically around 50%—of this value is set as the loan amount.
The reason for offering a loan amount lower than the car’s full value is to minimize the lender's risk. If you fail to repay the loan and do not secure an extension, the lender can repossess your car. If the loan remains unpaid, the lender has the right to sell your car, using the proceeds to repay the loan.
Requirements for Getting a Title Loan in Texas
To get a title loan in Texas, make sure:
- The title is in your name.
- The vehicle is lien-free (no other loans or claims on it).
- You provide a valid government-issued ID or driver’s license.
Need help with the title transfer? The DMV can assist you with the paperwork.
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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 Apply for a Title Loan in Texas
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
Ready To Get a Title Loan in Texas?
If you need cash fast and own a car, a title loan is an excellent solution. Get started now by filling out our simple online inquiry form or calling 1-800-514-2274. Our friendly team is ready to help you get the cash you need today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.