Car Title Loans in Lorain: The Whats and Hows
There’s no need for you to search any further to get quick cash!
What if we tell you that applying for car title loans in Lorain can GUARANTEE you the money you need?
What if with car title loans, you can secure a loan even with:
- No proof of income
- Bad credit score
- No credit check
Say goodbye to your financial crisis and be more prepared with car title loans!
How Do Car Title Loans Work?
Car title loans are also referred to as auto title loans. It is a type of short-term loan wherein the borrower uses their vehicle or car for collateral.
Anything with a TITLE can be put up as collateral as long they’re providing acceptable property.
You pledge your car, vehicle, or property title as collateral with a car title loan.
What’s THE CATCH for that simple process?
Failing to complete loan payments and failing to abide by the agreement with your lender can risk LOSING your car title and the car itself!
But a huge advantage is having such an easy and convenient process both OFFLINE and ONLINE.
What Are Car Title Loans For?
A car title loan is a well-known cash option for:
- Household purposes
- Emergency expenses
- Health insurances
People who are desperate and in ABSOLUTE NEED of money often resort to this option.
If you seek short-term cash loopholes, this could be a lot helpful for you!
Car Title Loans Application Procedure: Lorain, OH Edition
Believe us when we tell you that the application process is E-A-S-Y!
With the changes from the pandemic and some restrictions, you can now apply ONLINE too!
Don’t forget to be careful because there are only a few trustworthy and reliable title loan lenders.
Title Loans Lorain Offline Loan Process:
You can now choose between applying offline and online.
If you have doubts about the online process, you can easily go to the title loan company site.
Although even when you apply online, you may still be required to validate your identity and car in person.
Step 1: Consult a Lender and Submit a Loan Application Form
Before you can proceed to the swift process of the application, you must first find your lender of choice.
There are many lenders to choose from but make sure that the one you choose is LICENSED and AUTHENTIC.
Once that’s settled, you fill out a loan application form that asks for some of your personal information.
Like other loans, the process may vary from one title loan company to another but submitting an application form is a standard.
Step 2: Submit Required Documents
Hold your engines. You’re still a step away from getting the money you need.
When you visit the car title loan company, you bring ALL OF THE REQUIRED DOCUMENTS possibly needed.
These basic documents determine your eligibility and how much cash you can receive, the loan borrowing rates, and suitable payment terms.
You must know that lenders rely on their terms and conditions for the documents needed.
Have a look before you go to the car title loan company.
This is the list that contains the basic documents needed for reference:
- Government-issued ID
- Original vehicle title showing sole ownership
- Classic vehicle or a newer car (the vehicle year may also affect how much money you borrow)
- Proof of car insurance
- Proof of residency or utility bill
- Pictures of the car on all angles and sides
- Pay stubs that demonstrate ability to repay the loan amount
- Three references not related to you
These are all standard requirements, but some lenders may have additional requirements like the other loans in Lorain, OH.
The best thing to do is to comply with all of it. These can be the basis of how much money you can get and how much of a good deal you can get with the interest rate.
Failing to bring all standard documents can put your application to conditional approval and pending review.
Plus, the minimum loan amount will differ from lender to lender. Not all lenders share the same loan terms.
Step 3: Release of Funds and Contract Signing
After settling everything down with the documents, you and your lender will develop loan terms.
The contract will indicate all terms and conditions in the fine print, so READ THOROUGHLY.
Everything will be disclosed in the fine print, from the loan deals, loan borrowing rates, and loan proceeds (a.k.a how much money you get to borrow).
Once you sign this form, there is no turning back; you must commit and abide by it!
But for safety purposes, knowing the regulations of title loans (Lorain) could be helpful.
- You are permitted to make monthly payments.
- Your bank account details are not needed for assessment, but you need them to take out an auto title loan.
- You need to have the car paid in FULL and have no underlying debts.
- Title loans Lorain offers quick funding time within the same day.
- There are no pre-payment penalties when you start making payments early.
- You get to negotiate with your lender about the loan repayment date.
If these terms do not seem fair to you, you may clarify all of your concerns with your lender. They should be able to explain everything to you.
Step 4: Get Your Money
Once you get approved, you can claim your money on the same day!
The biggest advantage of title loans is that the loan process happens within a single business day and in LESS THAN AN HOUR!
You can have the money directly deposited to your bank account, claim it on-site, or have them write a check to you.
It’s that simple!
Everything is slowly being done with convenience in today’s world.
Step 5: Making Payments
The next step in securing car title loans is to settle payments.
Most lenders allow you to make monthly payments because their job is to understand your money concerns and needs.
Since a car title loan is a short-term financing loan, most lenders know the burden of saving up money within a short period to repay.
But, remember that each time you miss payment deadlines, additional fees and annual percentage rates will accumulate.
It can be issued if they are stated within the terms and conditions.
We suggest that you develop a repayment scheme before applying for the loan.
Step 6: Claim Your Car Title Back
Once all payments are dealt with and accomplished, you may claim your car title and car(if confiscated) back.
They MUST return everything to you.
But, if you fail to comply and abide by the commitments and responsibilities of the contract, you will have to surrender your car and ownership!
Title Loans Lorain Online Loan Process:
The online loan processing also only takes a single business day.
It has similar requirements when applying for title loans offline; the only difference is doing everything online.
Some lenders may ask you to show up for validation and car inspection, but others no longer require you to and can approve you in LESS THAN 20 MINUTES!
What Are the Advantages of Car Title Loans in Lorain County
If you made it this far in the article, you are probably far more interested in applying for an auto title loan.
No worries because there are a bunch of advantages that can seal the deal for you:
- There are competitive interest rates through repayments.
- You can arrange an entire payment plan with your lender directly that allows you to repay the funds in less than a year or within a couple of years WITH NO PENALTIES AND FEES.
- It’s a piece of cake to get pre-approved and the final approval as long as your car is qualified and you are eligible.
- You get to keep driving your vehicle!
- You can get affordable title loan deals.
- The applications are easy to process.
- You may even get the money you loaned within the SAME DAY.
What Are the Disadvantages of Car Title Loans in Lorain County
Most title loans share the same disadvantages, but when it comes to the need for a high credit score and a credit inspection.
You can trust that they are more lenient in Lorain, OH.
However, it is better to be informed about the standard disadvantages of most auto title loans for future purposes.
Some of the disadvantages of car title loans are:
Excessive Fees
Not that there are excessive fees when you secure an auto title loan in Lorain, OH, but keep your eyes peeled!
Excessive fees are usually hidden in the contract’s fine print that you will sign.
Hidden fees on top of your total loan amount can backfire once you need to start repaying.
High-Interest Rates
Most auto title loans come with high-interest rates, making it important that you find a compassionate loan lender.
Since bad credit is accepted, the interest rates can be as high as the sky!
Many people start to withdraw from applying because interest rates double up the money they need to pay off their title loan funds.
MUST-READ:
In most scenarios, credit checks and credit scores do not affect your eligibility to get an auto title loan.
BUT, there is still a possibility that some lenders may still perform a credit inspection.
How would it affect your application?
If the situation permits, a bad credit score can still guarantee you a car title loan, but you will have to struggle with competing with other applicants with BETTER credit scores.
The advantage? They get lower interest rates, better deals, flexible repayment options.
We recommend that you RAISE your credit score before applying to be sure.
Risk of Repossession
You won’t go to jail when you fail to repay a loan, but you will permanently lose the property and title you pledged for collateral!
They require a property or title for collateral so they can retrieve money if you withdraw from the loan.
You must be aware of this to be more cautious and responsible!
Reminders Before You Get Car Title Loans
We want to share a few reminders with you before you commit to applying for a car title loan.
- How much money you can borrow will rely on your car’s equity value.
- If your car’s equity value is HIGH, you will be able to borrow up to half of how much it costs.
- You may apply for two title loans as long as it is with a different car.
- Different types of loans have different regulations when it comes to loan processing.
- Auto title loans are expensive.
- The mileage and condition of your car may sometimes affect how much cash you can borrow.
Alternatives for Auto Title Pawns
After learning about everything, some of you may have doubts or hesitancy about applying,
We understand that a title loan may seem scary, especially when you’re in a financial rut and are unsure if you can repay the loan afterward.
That is why we bring you alternatives!
Service Student Loans
Since you need to be old enough to get a driver’s license, this option becomes handy for students who need a loan.
In this arrangement, a federal student loan servicer is considered the middleman between you and the government administration that gives you money for college.
Student loan servicers gather your student loan bills and monitor if you pay the loan back on time.
They also help borrowers change repayment plans, qualify for forgiveness programs and sign up petitions to postpone loan payments.
Personal Loan
A personal loan is also an amount of cash that you can borrow to use for different reasons.
You may also resort to this option to consolidate debt and pay for different finances. You can acquire personal loans through banks, credit unions, and online lenders.
It’s similar to title pawns, but the difference is you can apply for an unsecured personal loan WITHOUT collateral.
Borrow From Friends and Family
You can try loaning from your friends and family; no one has your back more than they do!
You wouldn’t have to stress over extra charges and oh-so-high borrowing rates with them.
Just make sure you pay them back to avoid affecting your relationships with them.
Frequently Asked Questions
A set of common questions could clarify some concepts that you don’t understand.
Do I Need to Be Employed to Apply for a Title Pawn?
In Lorain, OH, they do not require you to be employed to be guaranteed a title pawn.
Although, they will ask for proof of income which could be ANY PROOF of where you get your money or how you earn it.
Are Title Pawns Accessible Everywhere?
Unfortunately, title pawns providers are not found in all states of the USA.
But on the upside, there are many in Lorain, Ohio, which you can apply to without legal issues.
Are All Title Loans Serviced the Same Way?
Nope.
There are some title loans serviced more strictly, and some in a lenient way.
It depends on the terms and conditions.
Conclusion
Now that we’ve finished tackling the entire procedure and regulations of title loans in Lorain, it is your call to be responsible for your financial situation.
Get your vehicle, documents, and vehicle title in check and apply now!
Don’t let another financial rut push you into a rabbit hole!