How to Apply for Car Title Loans In Arlington
Monthly payments are due. Holidays might be near. Not sure where to get the cash needed?
Luckily, adrenaline-pumping attractions and crowd-filled arenas aren’t the only good deals you can make when you reside in the Arlington area.
Get to know more about Arlington car title loans, how you can get one, and the benefits of doing so!
What Are Car Title Loans?
Unlike other types of loans that do not make use of collaterals (in order to ensure the fulfillment of the lenders and borrowers’ agreements, car titles loans (otherwise known as auto title loans or vehicle title pawns) distinctly require the borrower to pledge their car as collateral.
Generally lasting for only fifteen (15) to thirty (30) days, car title loans are more on the short-term side of the loan spectrum that an individual may deliberate upon with their local banks.
What’s more, this particular type of loan is known to be a good example of subprime lending.
- The individuals who opt to obtain this type of loan are the ones who, for one valid reason or another, either have low to mid-range incomes or poor credit scores.
- This doesn’t mean, though, that individuals who have mid-range and above incomes or individuals who have high income cannot apply and get approved for a car title loan.
Car title loans have higher interest rates compared to other kinds of loans.
We know that this all might sound like a lot from the perspective of potential car title loan customers.
But looking at it more pragmatically, the relatively higher interest rates for car title loans are fair insofar as:
- Higher funds. The borrower can get relatively more funds compared to how much cash you’d get from other kinds of loans (e.g. personal loan).
- Fast cash. There’s a bigger possibility to receive your loan from your local bank when applying because of the security that providing collateral creates between you, the borrower, and your debtor.
- Shorter wait time. For as long as you have all the requirements, getting this particular title loan is pretty quick.
- Lower credit score. Regarding running a credit check on potential clients, a car title loan requires a relatively lower credit score.
How To Apply For A Car Title Loan In Arlington VA
With the basic grounds and definitions covered, let’s now talk about the application process and required documents you’ll be needing to get car title loans in Arlington VA.
Aside from the usual loaning process protocol of the lender or bank running a credit check on their potential customers, here are the documents needed for an auto title loan:
- Vehicle. Remember that for this particular type of loan, your car will be used as collateral.
- Clear vehicle title. This is proof to your lender that your car doesn’t have any outstanding financial burdens.
- Valid government-issued ID. A valid government-issued ID provides your lender with important and legal details about you such as your personal information and contact information.
- Updated proof of income. This will secure your lender that you have the adequate financial capacity for the monthly payments of your loan.
Obtaining the abovementioned documents for your vehicle title pawns is both necessary and convenient.
They will get you through the loan application process easier. Additionally, the documents we mentioned will be needed, whether you choose to apply online or on-site with your local Arlington TX banks.
Pros & Cons of Getting A Car Title Loan In Arlington VA
Great! You’re equipped with the necessary details regarding the things you need to have in order to apply for this particular title loan in Arlington.
Let’s discuss some additional information to help you decide if a vehicle title loan really fits what you’re looking for.
First, let’s go through the advantages of getting the particular Arlington title loan.
The process of getting pre-approved from your lender, as well as the final approval is relatively shorter compared to how long it takes for other loans (e.g. personal loan, conventional loan, etc.).
Credit Score Isn’t Detrimental For Your Application
This particular title loan falls under subprime lending which is the general category of loans that are geared towards lower-income individuals.
So, say your lender or local Arlington bank a credit check on you and find that you have a low credit score. This won’t really do much to keep you from getting your loan application approved!
You Can Still Use Your Vehicle
Even when you’ve registered it for a title loan, you’ll still be able to drive it around.
What happens is that while you are still in the process of completing your payments, your lender or local bank will have the right to your vehicle until you pay for it in full.
Lenders in Arlington provide convenient plants that are aligned with their customers’ income whilst staying within the boundaries of the agreed-upon loan terms and the Virginia law regarding loans.
Through this, there’s a smaller chance for potential title loan customers to miss payments.
Now, on to a few of the more disadvantageous details that you might want to consider when you’re applying for this particular type of loan.
Take note of these if you’re not quite sure where you’ll be sourcing your money.
Higher Interest Rate
Arlington title lenders will most likely integrate your loan with a high-interest rate, to make up for the fact that even low credit customers cab get approved.
So, when applying for this particular title loan, expect considerably high rates up to 200 to 300 percent.
Possible Vehicle Repossession
Considering the collateral that is used in this type of loan, there is a possibility that you will end up losing it to your lenders if you’re not able to stick to the payment plan that has been agreed upon.
Possible Unexpected Expenses
Now, when we say unexpected, we mean the little details on the contract that you might miss when you’re signing into your loan contract already.
These additional fees are usually used for the unlikely situation wherein the collateral will get repossessed or to ensure your credit.
So remember to thoroughly read and understand the terms of the loan contract that you’ll be signing into so that you aren’t blindsided by any ‘unexpected’ fees.
Frequently Asked Questions
Seeing as how this loan concerns the possibility of losing a vehicle, as well as having to scrounge up money in a short amount of time, we did our best in order to cover some of the concerns that you might be having.
How Soon Can You Get Your Money After Getting Approved?
Considering how this particular loan is considered a fast way to get money, it’s possible to receive the money within the same business day that you get approved for your loan.
This is feasible as long as you submit all the requirements needed by your lenders.
In short, if you get approved for your loan today, then you will most probably get your money today, too!
Can I Still Use A Car I’ve Already Pawned?
You will still be able to use your vehicle throughout the duration of your repayment towards your lender or local bank. The only thing that your lenders will be holding on to (aside from the documents you’re required to submit) is the title of your vehicle.
The only time that you won’t be able to use your vehicle is when you fail to repay your loan in full within the set deadline.
Are Credit Scores Important?
Let’s say that you may have had your credit score lowered because you borrowed money before for a business, a personal reason, or even for particular marketing purposes. Unfotunately, you weren’t able to repay it in time.
Well, no need to worry!
Credit scores aren’t much indicative of whether or not your debt application will get approved.
What If You Have A Bad Credit Score?
As we’ve discussed earlier, a bad credit score will most likely not hinder you from getting fast cash through this debt.
What If You Don’t Have A Title?
Having a vehicle title is essential for this type of debt. Without it, you won’t be able to get cash from your lender/local bank as you’ll be receiving as much as how they will estimate the value of your vehicle.
Now, if you don’t have a title because it’s expired or has been unrenewed, then you can easily remedy it by renewing it prior to applying for your debt.
But if it’s not the case and you do not have a clear title for your vehicle, then we strongly suggest alternative types of loans.
What If You Don’t Have A Bank Account?
If you noticed earlier, having a bank account was not included in the requirements you have to submit when applying for this type of debt.
How Does Payment Work?
As this type of debt is a short-term one (with a repayment deadline of sixty to ninety days), the interest rate is relatively high compared to other types of debts that are more long-term.
With that said, this type of debt has an average monthly fee of 25 percent.
Meaning that if the value of your vehicle has been equated to, say, 5000 USD, then you’ll need to pay an additional fee of 1250 USD if your contract states that you need to pay your debt within thirty days.
You now know enough about both the potential advantages and disadvantages that this particular title debt entails when you apply for it — be it on-site or online.
It’s a quick way to get cash, it doesn’t require a good credit score, you can still use your vehicle despite already registering it as collateral, and your local banks have good competitive rates that offer you a good set of choices.
This loan has higher additional rates, is short-termed, and the cash you’ll be receiving is solely dependent on the honest value of your vehicle.
But all title loans and debts have potential benefits and downsides.
In the end, it’s important that you don’t tunnel vision on the amount of cash that you can receive through this debt. Keep in mind your intent and your cash source.
- For your intent, deliberate on whether or not the personal or marketing purposes for your application is immediate.
- For your cash source, ensure that your business or job can keep up with your debt’s additional rates.
So, the decision is in your hands: do the benefits outweigh the risk or is it vice versa?