When it comes to title loans Cedar Park residents in Texas should take time to consider this short-term loan over more traditional options. Title loans offer a way to compensate for emergency expenses or monthly shortfalls by providing quick approval and just enough money to make up the difference. Thanks to state regulations, these loans are also just as safe as larger, longer-term loans that are offered by the big banks. Before getting started on a Austin title loan application, however, it might be a good idea to review how a title loan works, what the application requires, and how a title loan can be beneficial.
A title loan is a type of short-term loan that uses a fully owned vehicle as collateral. Using a car’s title as collateral has a few key benefits, including making it easier to gain approval for the loan and making it easier for loan officers to calculate the maximum amount of money offered to each borrower.
Unlike long-term loans from major banks, the typical title loan does not rely on FICO credit scores or require an extended repayment period. The short-term nature of the loan makes it a perfect fit for borrowers who are dealing with unexpected expenses or find themselves just a little bit short of the money they need to pay their monthly bills on time.
Online title loans application is a refreshing change of pace for borrowers who are used to extensive loan applications for long-term lending products. Each title loan application starts by requiring some personal contact information. These contact details are used when loan representatives get in touch with applicants about their vehicle’s details, the loan’s maximum amount, and any other information that must be confirmed. Required information includes:
Along with personal information, the application will require a few key data points about the borrower’s vehicle. First, borrower’s will need to certify that their car is fully owned, with no lien holders listed on the official title. Next, they’ll be asked for the year, make, model, and mileage of the vehicle listed on the title. This information is used to value the vehicle and originate a loan in the proper amount.
After submitting a completed application, an instant title loan estimate of the amount will be generated. A loan representative will review the application’s details and get in touch with borrowers regarding a final loan decision and amount within minutes. The funds will typically be approved same-day and available the next day in a borrower’s bank account.
Texas state lawmakers in 2011 passed two bills regarding title loans that borrowers should be aware of. The first of these bills created a new licensing system in the state of Texas that included title loan companies, payday lenders, and others who offer short-term loans. The law requires that any company offering a title loan be licensed by the state of Texas. A second piece of legislation, passed the same day in 2011, requires that title loan companies disclose the effective interest rates and agreed upon payment terms in a written agreement at the time of loan origination.
Why opt for a title loan instead of a long-term financial product? There are several ways that this type of loan can benefit borrowers:
These benefits can make all the difference for customers experiencing a financial hardship in Cedar Park. Texas title loans ease financial stresses, provide for on-time bill payments, and make financial emergencies easier to manage.