Budget and Finance

Budgeting and Finances: The Basics of Car Title Loans

So you need money instantly and you have a car. You’re thinking about a car title loan. Well, this is how it works: A car title loan pretty much works like pawning your valuables on a pawn shop.

Basically, you’ll bring your car to the lending company. They will inspect it and evaluate the price of your car based on wholesale prices. Then, they will loan you cash based on your car’s worth. In exchange, they will hold on to your car’s title until your loan is repaid. The loan is a short-term loan so it usually comes with a higher interest rate as compared to a car mortgage loan and the like. If you don’t pay back the car title loan (plus the interest) within the time frame they’ve set set time frame, you’ve essentially sold your car to the lender by default.

Who can get a car title loan?

The car title loan is based on equity you’ve built up in your car. That means that you need to fully own your car before you can use it to get a loan. You won’t be able to get a car title loan if you still have a pending balance on your car loan or if your car’s title is not under your name (encumbered) or is not in your hands just yet. You cannot use your car and your car title as a collateral for a loan if another loan is associated with it.

In addition to that, you won’t probably get a car title loan if you car is heavily damaged, flooded, or is not running. Other requirements of a car title loan may include a minimum age, proof of your residence and proof of your income.

What should you check when getting a car title loan?

When you plan on getting a car title loan, you need to check a number of things. Ask yourself  if it is okay for you to lose your car if you miss the payment. You really need to fully read the contract and determine how the interest is calculated and what is the time period for which the interest rate is calculated. You also need to know what penalties will you incur if you pay late or if you miss a monthly or bi-monthly payment, or if you miss the deadline for the full payment. You need to know what the fees are or if a missed payment will automatically mean that they will now own your car. You also need to know what the mitigation rules are.

Getting a Car Title Loan in Dallas

Not all loan companies are the same. LoanMart has really worked to improve the industry and offers some incredibly affordable rates and fair terms for car title loans. It’s the easy way to get cash quickly if you’re in Texas.

Part of the reason why LoanMart has grown so popular is because of the way the company treats customers. The company operates as both a direct financier of car title loans and similar loan types. In addition, if you don’t have the greatest credit, LoanMart offers methods to lend products even to those who have been turned down before.

The mission of LoanMart in Dallas is simple, provide the best customer service and fair loan terms, which allows for financially responsible lending. Even those who are self-employed and can’t provide a great credit history, may be approved because of their collateral.

It’s easy to get a car title loan from LoanMart any time of day as well. With a quick application, you an be approved in as long as three minutes. In addition, loans are created based on your ability to pay back what’s borrowed, but if something comes up, arrangements can be made to help you renegotiate the terms of your loan. All repayment terms and loan information is provided upfront so you know exactly what you’re borrowing before you get into a new loan.

You can call 1-800-LOAN-MART to talk to a friendly person about getting cash today or just answer a few questions on their site to get started.

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Ellen is a blogger, a web content writer, a researcher, a stalker, an entrepreneur wanna-be, a resourceful moneymaker, a big fan of Supernatural TV shows, a household queen, and a mom of four.