You’ve got an emergency and need cash – right away. Because a bank loan is out of the question, you’re not sure where to turn. You have heard about title loans, which merely require a vehicle, a clear title, and the income for loan repayment.
States have purview over the industry, and since you are in Texas, you may be wondering how title loans work in Houston. Keep reading for that and more on the title loan process for your vehicle.
Tell Me More About Title Loans
These are short-term loans with repayment due in 30 days or less, although some installment loans go out as far as a year.
In exchange for a loan, the lender will hold onto the title to your vehicle – car, truck, boat, RV, or motorcycle – until the debt is paid. The loan company doesn’t need your vehicle since that serves as loan security. You can continue to use your vehicle as normally while making payments.
Because your vehicle is loan collateral, do realize that if you don’t make timely payments, it could be seized and sold to cover the debt.
On a positive note, some lenders in Houston TX will lower your monthly payment and interest rate if you consistently make on-time payments. Inquire about this before taking a loan out.
Give Me An Idea Of How Much I Can Borrow
This depends on the law in the state where the lender’s located, the lender, your loan repayment ability, and the make, model, mileage, model year, and condition of your vehicle, including whether you have made any alterations or modifications. Sometimes, even the vehicle trim level can affect the loan amount offered.
Title loans Houston will lend you between 25-50 percent of your vehicle’s value. Most loans are for $100 all the way up to $10,000 or so.
Note that what your offer won’t be based on is your credit history, although the lender might run a check. The loan is secured, so title companies aren’t too worried about your scores. In fact, you might be able to garner more than you would ordinarily be able to from a traditional bank.
What Is Required Of Me?
Besides a vehicle in your name and a lien-free title, you are required to have a government-issued photo ID as well as proof of income. If you are employed, you will need to provide proof of income in the form of pay stubs or bank statements and the like. If 2 you are not employed but have another form of income – retirement, Social Security, lawsuit settlement, or rental payments, say – that will suffice as well.
Depending on the title company, you may face other requirements, including references and proof of residence and insurance. In Houston, borrowers must be at least 18 years old.
Finally, instead of taking your vehicle in for an in-person appraisal, you will merely need to send in good photos of it from all four angles, plus the hood, the rear, the VIN, and odometer.
How Long Is The Process?
It is not at all long, in fact it is very fast. After applying online, you very well may be approved the same day, if not within minutes. Following approval, borrowers usually have their cash by the next day.
In Houston, you will have options in terms of how to retrieve your loan. For instance, you may be able to go pick it up from the lender, or head to a local MoneyGram location. If you prefer, many lenders will deposit the loan directly into your bank account.
That is how title loans work in Houston. Such loans offer a fast and easy way to get out of a tight spot. Just be certain you are able to make payments.