Car Title Loans In Auburn, Washington: Learn the Pros and Cons Before Applying
Ever found yourself stuck needing to pay for some overdue bills or in the middle of an emergency with no cash to cover you?
Allow us to introduce you to CAR TITLE LOANS!
Title loans may be the easiest way to getting quick cash that could get you out of your tough spot.
Title loans are EASY TO APPLY for in Auburn, Washington, and we’ll walk you through all you need to know.
There are, of course, both pros and cons for title loans, and we’ll give you all the necessary information!
Now, let’s get into it!
Car Title Loans: What You Need to Know
Title loans may often be called pink slip loans, vehicle title loans, or auto title loans.
These types of loans require you to give the right of a title as collateral to the lender for a loan.
What does that mean?
Well, essentially, you are giving up ownership of your car to the lender in exchange for cash – which you will then have to pay off to get back the title of your vehicle.
On the surface, it’s a FAIRLY SIMPLE exchange.
Once your car gets approval, the title loan lender will check the value of your vehicle and finish any financial checks. (Note: Keep in mind, they DO PERFORM financial checks!)
When all of that is done, you can go ahead and GET YOUR MONEY!
Benefits of Getting Title Loans in Auburn, WA
Sometimes loans take FOREVER, right?
But when you are in the middle of an emergency, you can’t sit around waiting for a bank or credit union to approve your loan request.
On top of that, bank loans have SO MUCH MORE requirements to fulfill.
You could overstep quite a bit of these requirements if you were applying for a title loan – making your life just a little bit simpler.
If you’re wondering why, keep reading!
Simple & Speedy Application
If you’ve never encountered applications for a title loan, you’d be SHOCKED at how easy it is.
It’s SIMPLE.
Where other loans might have you fill out tedious forms and stacks of paper, most title loans in Auburn, Washington, have a standard application process.
The loan form will often ask for:
- Vehicle model
- Make
- Year
- Mileage
The contact information required IS NOT extensive. You’re usually asked for:
- Your full name
- Your phone number
- Your ZIP code
Once you’ve given all that information, which, let’s be honest, should take just minutes to complete, the lender will assess your information, value your car, and give you the money!
This can all be done within the day, and some lenders in Auburn, Washington, will even get the money to you in 30 minutes!
Negotiable Loan Terms
Allow us to be upfront. MOST title loan terms in Washington are set to be repaid in 30 days.
It’s rather little time, we know. We’ll get to why that could be a problem later on, but THE GOOD NEWS for you is that many lenders in Auburn, Washington, provide a loan extension service.
Ask your lender about their loan payment terms to make sure that you have ALL OPTIONS available to you from the get-go!
You and your lender can agree to extend your loan terms to up to two added periods of 30 days. (Keep in mind that extended terms will have added interest charge)
Keeping Your Car
You might be worried that giving your title as collateral to the lender means that you have to give up your car for the time being.
But, don’t worry!
In the case of title loans, you can actually use your car during the interim of applying for your loan and making up your payment. The lender DOES NOT actually take your vehicle unless you miss payments.
So, if you’re concerned about not having a way to get around to make your payments, don’t sweat it!
Just remember you won’t lose your car as long as you can complete the payment on your loan.
Drawbacks of Getting a Title Loan in Auburn, WA
At this point, you’re probably thinking, “well this is a no brainer!”
But it wouldn’t be fair to you if we didn’t also give you THE CONS that come with getting a title loan – and yes, there are also QUITE a few.
You Can’t Hide Your Credit Score
You may have heard that your credit score doesn’t matter when applying for a title loan but PLEASE REMEMBER lenders will do a credit check.
They will look at your financials to see if you’re good to make payment for your loan amount. This INCLUDES your credit score.
Although the credit score may not be the total deciding factor of whether or not you get the loan, it still accounts for a large part of the credit check.
When performing the credit check if the lender finds a low credit score you may get a worse off deal than someone with a higher credit score.
Just keep this in mind in case you thought credit scores don’t matter, THEY DO.
Full disclosure: It’s not that credit scores will destroy your approval. But it will contribute to the interest amount you have to pay.
Immediate Repayment Terms
We did say SOME lenders provide extensions on repayment, emphasis on some.
Usually, lenders give you 15 to 30 days for repayment, which if you think about it, is very little time.
Imagine that, you NEEDED money just 30 DAYS AGO and here you are scrambling to scrape up even more money in the same amount of time.
It’s a little disheartening but it’s the truth about title loans.
High-Interest Rate
Allow us to be blunt.
Title loan interest rates are through the roof. If you’ve ever heard about title loans being difficult to pay off, it might be because of this.
Loan term interest rates are often 20% but DO NOT ASSUME that this is the annual percentage rate or your interest OVER A YEAR. It’s actually your interest OVER A MONTH.
If you’re any good at math that means the TOTAL rate would be 240% making the money you need to pay off the title loan MUCH LARGER than the actual loan amounts given to you.
Asset Loss
Yes, while paying for the title loan you are allowed to use your car.
It is only if you cannot make the payments by the agreed time that you will lose your car.
The moment you give up the title of your car as collateral, the lender owns the vehicle!
BUT considering the interest rates we just mentioned, making those payments in that amount of time seems impossible and you’d just be giving your vehicle away trying to pay off the loans.
Applying for a Car Title Loan in Auburn, WA: 4 Easy Steps
Given you now know the good and the bad about borrowing from a title loan, if you still want to know how to apply, let us go over the loan process!
1. Pick Your Loan Provider/Service
You wouldn’t give up something valuable to you to a random stranger, would you? No, you wouldn’t.
That’s why this is THE MOST IMPORTANT step in the loan process. We hope you don’t just randomly choose your loan provider.
Finding the right loan provider will make your life so much easier in the long run and deciding whether they are good for you can be completed through a quick online search.
Remember, to read through ALL THE INFORMATION given by the lender to be sure you know what services they provide and what deal you’re getting into.
The BEST provider is one that suits your needs most.
If you’re having difficulty choosing, look to the people! CROWDSOURCING is a great way to find out whether a certain lender is good for you or not!
2. Fill Out an Application
When you’ve found a trustworthy lender, go to their site, and fill out the application form.
Again, the application is one of the simplest parts of the loan process. You’ll fill out an easy-to-understand form and need to know the most basic information about your vehicle.
Make sure to review your application and check that all information you put is correct!
3. Give Some Proof
Your lender will ask for all the necessary, legitimate documents and contact information like:
- Auto title or pink slip
- A Photo ID or government-issued ID
- Proof of Income
- Proof of Insurance
- Proof of Address
- Social Security Number
- Photos of your vehicle (all 4 sides, including VIN and odometer)
The lender MIGHT NOT ASK FOR ALL of these things but it’s always best to be prepared!
4. Get Your Money!
Based on your vehicle’s equity value, the lender will be able to give you the loan amount!
ALWAYS READ AND REVIEW the documents before signing them. Once signed, the loan is yours and you can now spend the cash to pay for your emergency!
Auburn Car Title Loans: FAQ
Here are some of the most commonly asked questions when it comes to title loans!
How Much Can I Get if I Apply for a Title Loan?
Title loans will usually get you 25% to 50% of the total value of your vehicle. Some lenders provide a minimum amount service, which you will need to double-check when choosing your lender.
I Don’t Have a Bank Account. Can I Still Apply for a Loan?
Yes. Although lenders do perform credit checks, as long as you have proof of income – ensuring you can pay off the loan, you can still qualify for title loans if you don’t have a bank account.
Is There A Chance I Don’t Get the Loan?
Yes – one of the reasons could be you couldn’t provide a reliable case for your ability to repay the money you’ll borrow.
Sometimes, when the vehicle has accumulated too much mileage, lenders may deny the auto title loan.
Get Your Car Title Loan in Auburn, Washington Today!
Now that you know the basics AND MORE about title loans, we hope that if you’re in need of some quick cash, you’re now confident enough to find a lender and apply for your own title loan!