Step-by-Step Guide for Car Title Loans in Alexandria, Virginia
Consistent financial stability is hard to come by.
We are going to be strapped for money most days. If you’ve exhausted all options and need a loan quickly, you can always count on getting title loans.
As long as you have the basic documents to complete a loan application, you can get that much-needed money easily!
Read on to learn how car title loans work in Alexandria, Virginia.
What’s a Car Title Loan?
First things first, let’s have some definitions.
Car title loans are high-risk, short-term loans that involve your vehicle as collateral.
They’re also called auto title loans and pink slip loans in other states.
- In return for money, you pledge your car title to the lender.
- You pay off the loan amount within a set period.
- If you’re not successful in paying off the minimum loan plus interest, the lender will repossess your car.
However, that’s not the end!
You will get a notice about the repossession. You’ll be given some time to pay off the loan before they sell your car.
Once sold, the lender takes what they’re owed and gives you the surplus.
How to Apply for Car Title Loans In Virginia (Alexandria, VA)
Need a loan fast? You can get your loan in your bank account within a matter of days!
Follow our steps below:
#1 Get The Required Documents
First, you need to provide documents to prove your identity and vehicle. Usually, the loan process will require the following:
- Personal information
- Contact information
- Financial information
- Proof of income
- Proof of residency
- Car details
- Car insurance
- Vehicle title
- Vehicle photos
These requirements may vary depending on the location and loan company. You can expect more or less of the same requirements in Alexandria, VA.
Does Credit Matter With Car Title Loans?
There are loan companies that do not perform credit checks. As a result, your credit score won’t factor in the loan processing.
HOWEVER, there are also loan companies that still perform credit checks. In these cases, there is a chance a bad credit score won’t affect your loan application.
We’re not going to lie, though. A good credit score greatly increases your chance to get the loans you need in Alexandria, Virginia.
Though your credit alone doesn’t mean you’ll have a pre-approved loan, it may open doors for better deals and discounts.
How Should My Car’s Condition Be To Qualify for a Title Loan?
You may have noticed that the requirements ask for your vehicle details and photos.
Ideally, your car should be in the best shape possible.
- The exterior shouldn’t have any scratches or dents.
- The interior should be free of any holes and rips as well.
- If the lender doesn’t ask for photos, they may conduct an in-person inspection. So, no, you can’t pass off a different car as your own in the photos!
It’s also a plus if your car has had extra upgrades or a new paint job. Owning a vintage or classic vehicle is a bonus on your end. The loan amount you can get will be much higher.
Aside from photos, you’ll need to provide insurance information, the vehicle year and model, and equity.
How Does Equity Factor In?
Equity can affect the final approval for your loan.
Get a motor vehicle appraisal before you apply for title loans. You may be in a negative position if you have payments leftover in your car.
What If I Don’t Have a Title or Financial Information?
Some borrowers don’t have their auto title on hand. Some are unemployed residents who don’t have the financial information to get through the approval process.
You can still apply for a loan without a title or the usual financial information.
If you don’t have a title, be honest with your lender. You can discuss your options then.
If you don’t have your proof of income, other documents can be substitutes. Bank account statements are good examples. What’s important is that you demonstrate ability to pay off the loan.
These missing requirements mean the process won’t be as smooth, but your loan can still go through. It will face conditional approval as lenders review your documents.
#2 Go to the Title Loan Lender or Apply Online
Do you have all your requirements? It’s time to apply for your title loans!
Title loans serviced in Alexandria, Virginia, are usually done in person.
However, you may not be near featured locations or can’t get to the lending company during their service hours.
You can also opt to apply online. You might face technical problems, but title loans will still be successful! Just send over your documents and talk to the lender online or phone.
If you apply online, you skip lines and enjoy faster service, too.
#3 Wait For Approval
After you’ve passed all your documents and talked about the terms with your lender, your application will be for pending review.
With title loans serviced in Alexandria, Virginia, approval can take a business day or two.
However, most lending companies will decide within the day.
#4 Get Your Cash!
We’ve gotten to the fun part! Once you’ve finished providing acceptable property, your documents, and agreed to all terms, you can get your loan.
You may be provided a funding time and a set business day to expect your cash. You can opt for a direct deposit or pick it up at the lender’s specified location in Alexandria, VA.
How Can a Car Title Loan Help Me?
Title loans are generally avoided because of the high-interest rate. However, it remains a popular way to get emergency cash.
Car title loans are high-risk, but that doesn’t mean they don’t come with benefits.
- You do get your much-needed money pretty instantly. The loan processing time won’t take too long, and approval isn’t hard to come by.
- Unemployed residents, those lacking a title, or borrowers with bad credit still get a shot at getting the minimum loan they need.
As long as you’ve done your due diligence, a title loan is safe and secure for whatever needs you may have at the time.
Pay off medical bills, use them for household purposes, and boost your small business with the money!
Get a reputable lender in Alexandria, VA. Make sure you know all about the laws that protect you when getting title loans in Alexandria, Virginia, too!
Regarding laws, let’s move on to the legalities and things you should know about title loans serviced in Virginia.
Car Title Loans: Things to Remember in Alexandria, Virginia
Car title loans vary from state to state. Alexandria, Virginia, is no different!
You need to keep in mind some things before you apply for auto title loans in Alexandria.
#1 Virginia’s State Corporation Commission Will Keep You Accountable
The State Corporation Commission regulates all business and economic affairs within the state.
With car title loans, the SCC wants both borrowers and lenders to know their rights.
Before you go through the loan process, there must be a written agreement between you and the lender.
- You want to make sure both of you are legal adults entering the agreement.
- Ensure all the terms are clear to each of you, and there are no hidden fees involved.
- The lender has to let you know about the risks title loans come with and how they’re within their rights to repossess your car.
- In turn, you get to make sure the lender follows the laws in Alexandria, VA, before and after giving you your loan money.
#2 The Money Can’t Be More Than 50% of Your Car’s Market Value
Adjust your expectations when receiving a car title loan!
The cash you get won’t be more than 50% of your car’s value.
After all, the loan proceeds go to selling your car and covering the money you owe the lender, plus interest.
#3 The Loan Term Can Only Be Within 4 to 12 Months
Unlike Virginia, nearby states only give you 30 days to repay your loan.
However, title loans serviced in Alexandria, Virginia give you 120 days to a whole year! You also have to pay the money back in monthly installments of the principal and interest.
#4 No Renewals Or Rollovers – Ever
The long loan term does come with a drawback.
In other states where 30 days is the norm, you get the chance to pay off the interest and roll over the principal to the next month.
However, Virginia has a set loan time period – a minimum of four months and a maximum of a year. Once you decide on a loan term, you won’t face any more technical problems.
You only have to accept that your loan cannot be renewed, extended, or rolled over.
If you haven’t paid off the owed money by the end of the term, expect your car to be repossessed!
#5 You Can Repay Early
Some states penalize you for repaying your loan early. This isn’t the case in Alexandria, Virginia.
You can lower your interest by repaying your loan as early as you can manage.
A lender can’t refuse early payment or partial payment.
#6 There Are Interest-Rate Caps
Other states also have unregulated interest rates going around. However, Alexandria, VA, differs by having a set interest rate of 22% a month. Look at the following guide for more details:
- For loans up to $700, the interest rate is 22% per month
- For loans up between $701 to $1400, the interest rate is 18% per month
- For loans $1400 and above, the interest rate is 15% per month
#7 You Get a 15-Day Heads-Up
If you do have your vehicle repossessed, don’t worry. The lender will contact you in writing at least two weeks in advance.
You won’t be kept in the dark! The lender will inform you when your car may be sold and how much money you still owe.
During the 15-day period, you can pay off the loan to get your car back.
If not, the car is sold. The lender will give you the sale surplus, but keep the owed money for themselves.
Instead of settling for a bank loan or credit union, you can get much faster service with auto title loans.
Title loans serviced in Alexandria, VA, provide secure funding backed by your title loan.
How much cash you get will be based on your car’s condition and market value. Getting approval and the actual cash is much easier than you think, too!
We hope this article helped you get a title loan in Alexandria, VA. Are you getting your own soon? Let us know!