Car Title Loans In Hillsboro, OR
The greatest financial difficulties can hit any of us at the most unexpected time. And when it does happen, we are put on the spot with so many obligations without any support.
Running to a traditional lender may seem like the most viable option, but it can often be frustrating especially if you need the money as soon as possible.
That’s where car title loans come in. These loans are perfect if you’re in dire need of cash due to an unexpected emergency and a quick solution to your current problem.
A Closer Look at Car Title Loans: What You Should Know
Simply put, car title loans are a type of a secured loan where the borrower pledges his car (or any acceptable vehicle, really) as collateral for the loan.
It is sometimes referred to as auto title loans or pink slip loans in some states.
Take note: You are not giving your car away right then and there. You are simply ceding the title to your car.
The lender will become the legal owner for the duration of the loan but you remain as the registered owner.
So long as you pay on time and according to your loan agreement, the car stays with you! Otherwise, you may be withheld of the right to possess your vehicle.
But first, clarify with your lender if they approve allowing you to continue driving your car after you’ve lent your title.
How Much Can You Get From Title Loans?
Car title loans are truly a quick and convenient way to get money when you’re in a pinch.
While it is prudent to only borrow what you need, the amount of cash you get from the loan, as well as the interest rate, are greatly dependent on several factors, such as:
- The borrower’s credit score
- The borrower’s ability to pay off the loan
- The vehicle’s make, model, year, mileage, and condition
- State laws
These and other factors will determine how much money you can get from your lender.
One important thing you should know though is how to value your vehicle as this will largely affect your loan. There are even a few title loans that make your vehicle’s value the sole basis for your loan amount.
To get an estimate of how much your vehicle is worth, you can use this formula:
EV = CV – dues and fees x lender rates
However, your lender may have a different metric. It’s crucial that you ask how they value your vehicle so you can check whether your fees are fair or just excessive.
Pros and Cons Of Car Title Loans
You Can Get Money Fast.
Being able to get cash fast is probably the most attractive benefit of getting a car title loan. This is good if you are attending to an emergency where you need a large amount of money right away.
In fact, most lenders have quite a simple loan process where the borrower can get money almost instantly after accomplishing a few simple forms.
Because of this, the process of getting an auto title loan usually only takes a day or two. Some lending companies even guaranty that the process can be done in just fifteen minutes!
There Are Fewer Credit Checks.
Speaking of a simple loan process, lenders often conduct fewer credit checks and bank account inquiries on the applicants.
This makes it so much easier to get an auto title loan compared to other types of loans.
Though this does NOT mean that your credit score is entirely irrelevant as will be explained later on.
You Get to Keep Your Vehicle.
Whether its your car, your motorcycle, or any other allowable vehicle, you get to keep it during the pendency of the loan. So, you don’t have to worry about not having a means of transportation!
This is because only your Hillsboro title is surrendered to your title lender.
You will only lose rights to your vehicle once you fail to pay your outstanding balance.
Interest Rates And Fees Can Be High.
Have you heard of the saying, “it takes money to make money”? Well, this is true for title loans, whether or not you are in Hillsboro.
Auto title loans are expensive.
APRs or Annual Percentage Rates for title loans can be as much as 300%, due to high interest, finance charges, and other fees.
When these charges are mismanaged, they can hurt your financial well-being more.
This is why it is imperative to approach a lender who understands what you need and a loan officer who can assist you through the entire process – from inquiry to approval.
Repayment Terms Are Shorter Than Usual
Precisely because it is a fast-paced loan, car title loans run for very short periods of time (some for just a month).
If you are borrowing a large amount of money, or if the interest is high, it can get difficult to pay off what you owe in a short amount of time.
If you fail to pay in accordance to the agreement, your lender may repossess your vehicle.
It Is A Potential Debt Trap
According to the Consumer Financial Protection Bureau (CFBP) more than half of car title loans become debt traps to the borrowers. They end up incurring other debts to pay for their current title loan.
When mismanaged, your title loan can lead to a never-ending cycle of debts – one scenario you surely do not want to fall into.
Take note though: If you’re confident in your financial management capability for your repayment plan, you won’t fall into a debt trap.
How to Apply for Car Title Loans in Hillsboro, OR?
Requirements to get a title loan vary from state to state. Below is a walkthrough of the loan process in Hillsboro, Oregon.
Step 1: Choose Your Lender Wisely
Of course, choosing your lender is the first step. It is probably the most important step when looking into getting a car title loan.
Here are some qualities you should look out for:
- Flexibility of interest rates
- Clarity of terms and conditions
- Accuracy in determining the equity value of your vehicle
- Ease of application
- After sales service
There are many lending companies in Hillsboro alone. So, make sure you find not only the best in the business, but the one who can offer you reassurance and peace of mind.
Step 2: Submit Your Online Application.
Yes, the application for your title loan can be done online. Here you will need to fill out forms and supply necessary information without even leaving the comforts of your own home!
You will be asked about your personal information and details about the vehicle you intend to pledge. Make sure to give only true and accurate data as faking your details will definitely do you no good.
Once you submit the needed forms, the pre-approval process of your title loan begins.
Step 3: Prepare the Necessary Documents.
Upon pre-approval, you will be asked to submit documents including but not limited to:
- Paystubs from your current employer or proof other sources of income
- Proof of residence
- Proof that your vehicle is currently insured
- Proof that your vehicle is free from encumbrances
- Hillsboro title of vehicle
- Government-issued driver’s license or photo ID
- Images of your vehicle
- Personal references as may be required
Note that the requirements may vary from one lender to another. It is best to ask help from a loan officer if you have any questions or experience difficulty in complying with any of these documents.
Step 4: Review the Loan Terms And Conditions.
Just because you’re in a hurry doesn’t mean you shouldn’t be meticulous.
Make sure to fully understand and master the terms of your loan agreement to avoid breaching the contract, missing out on payment schedules, and incurring unwanted liabilities.
Do not sign the contract hastily! This could make or break your financial condition.
Here are some tips:
- Make sure the loan amount is commensurate with the equity value of your vehicle.
- Read the fine print. A lot of important details can be found there.
- Familiarize yourself with the penal clauses, if any, so you know how to avoid them.
- See an attorney if any terms seem vague.
- Ask questions and do your research.
Step 5: Get Your Much Needed Money.
Finally, the part you’ve been waiting for!
After completing the application process, you can now have your money given to you in cold cash or have it sent straight to your bank account.
Lenders in Hillsboro have tons of options for you cashing out your loan. Ask and see which suits you best.
That’s it! That wasn’t so difficult, was it?
Can I Get a Title Loan On a Car I Just Bought?
Yes, you can! In fact, this may even bode well for you.
Aside from the make and model of your vehicle, lenders will look at its condition and mileage. So, the newer the car is, the higher the equity.
This, among other factors, will help you get a generous amount from your lender since you are able to provide good security for the car title loan.
So long as your title vehicle is owned by you and is free from liens and encumbrances, you should qualify for a Hillsboro title.
Most lenders also have loan officers made available to you. You can approach when you have questions.
Does My Credit Score Matter?
If you’re feeling iffy about your credit rating, you shouldn’t be too worried.
Admittedly, applicants with higher credit scores will get better deals and lower interest rates. But a bad credit score does not mean that your loan application will be denied. It may just subject you to stricter loan terms.
While there are some car title loans that do not do credit checks, letting the borrower’s get away with bad credit score, there are still some lenders who make a credit check part of the loan application process.
Do I Need Proof Of Income for a Title Loan?
Your ability to pay is vital. It is the most most important thing for lenders is to see that borrowers have a steady way to repay the loan.
Your income will most likely determine the allowable loan amount. Thus, you will need to prepare proof of your income to back up your application.
But is it possible to get a car title loan without proof of income?
Fortunately, yes! Some title loans are available to those without proof of income or even a job! This is possible so long as you can present your vehicle title and any of these other options:
- Bank statements
- Disability payments
- Social security payments
- Any other benefits that you receive
Is There Any Other Alternative for Me?
If you aren’t too keen on subjecting your car to title loans, payday loans may be an option for you. These are small, short-term loans where the borrower pays the lender the money owed plus a certain fee.
Payment is done on payday, hence the name.
By that time, the lender will have the option to either debit the amount you owe from your bank account, cash your paycheck, or take other forms of payment from you, depending on how you agreed to repay the loan.
It would be best to get a payday loan from a federal credit union. They offer less expensive fees, lower interest rates, and longer payment periods compared to a traditional payday loan.
Since the APR is capped at 28%, this is indeed a more affordable option compared to title loans. Plus, you don’t run the risk of losing rights over your car.
Nevertheless, payday loans still have a higher APR than most loan offers so before making a decision, gather all the details first.
Now that you have all the necessary information on how to get a title/auto loan in Hillsboro, the task is no longer daunting and the risk is manageable.
Remember: there are so many title loans available from many different lenders in the business. So, don’t skimp on research and keep our tips to heart.
Soon enough, you’ll have your much-needed emergency money from a reliable lender.