Car Title Loans in Mansfield, OH: Everything You Need to Know
Stuck in a financial emergency? Need cash NOW?
Whether it’s hospital bills, overdue rent, or basically anything else that needs an instant cash solution, car title loans are a good, quick solution to your situation.
Aside from your ID and vehicle title, we’ve listed down all the requirements and information you need to know on how to get approved for car title loans, walk you through the loan process, and answer some questions you might have.
Why Get Car Title Loans?
Car title loans are INSTANT and QUICK solutions to your sudden cash crisis-you can get them as fast as 30 minutes to 24 hours!
And unlike a bank or a credit union, a good credit history isn’t necessary.
However, a good credit score will give you certain advantages-you’ll have more negotiating power before signing your contract and a lower interest rate. BUT you can still get approved for an auto title loan even WITH A BAD CREDIT SCORE.
You don’t even have to be employed to be eligible for title loans!
Lenders in Mansfield OH will assess one most important thing-your ability to pay back the loan.
And this can be proven by many things: your property, income from your business, benefits from social services, inheritance, and other documents to prove your income.
Will They Take My Car as Collateral?
No. Auto title loans are basically just title pawns-your lender holds on to your car title, BUT NOT YOUR ACTUAL CAR.
After you get your loan approval, you drive your vehicle away from the office with your money and use your car as usual.
Note: Just to be sure, confirm this with your lender before signing your contract.
How Are Title Loans Different From Auto Equity Loans?
With equity loans, you can get a loan without having full ownership of your car yet. But, the legal owner is still the bank.
In this case, lenders only allow you to borrow up to 50% of your vehicle equity.
Car title loans, on the other hand, will require you to submit a clean title upon application with your vehicle being paid in full and under your name.
How Much Loan Amount Can I Get?
Your lender will assess the money you can get depending on:
- The value of your car e.g., mileage, condition, year model, etc.
- Your ability to pay back your title loans amount
How Much Will Title Loans Cost Me?
The cost of the loan will depend on your lender and it can vary through the states- but usually, these loans can cost as much as 25% of the principal loan amount.
It can be tempting to loan the full value of your loan, but we recommend borrowing the smallest possible amount from your lender so it’ll be easier, later on, to pay back the loan.
If you lower the value of your principal loan, you’ll lower the value of your interest and in effect your full loan amount.
Before Applying for a Title Loan [Q&A]
What Are the Chances of Getting Denied a Title Loan?
Quite slim. A rejected application is still possible, but it rarely happens.
Title loans are geared towards those who didn’t necessarily make good credit decisions, are not currently employed, or are just in a bind and in urgent need of cash.
How Long Will Lenders Give Me to Pay My Loan Back?
Car title loans will usually have to be paid back in 30 days to up to 60 days, both the principal loan and the interest.
What Happens if I Can’t Pay My Loan on Time?
If you aren’t able to pay your loans in time, your lender will let you borrow the loan again for another 30 days with a fee.
This is called a rollover, and rollovers can be dangerous when you repeatedly roll over your credit because it can lead to your loan ballooning.
And if I Can’t Pay Forever?
In the worst-case scenario, your lenders will repossess your vehicle then sell it to regain the money they lost. Although, do remember that even lenders also want to avoid taking your vehicle as much as they can.
So try to call your lender and get in touch with a customer service representative first-they might have a way of helping you pay back your loan without having to take your vehicle.
It may also be helpful to submit a title loan application with a secondary vehicle.
You might have an old car, motorcycle, RV, boat, or any other vehicle just sitting in your garage and gathering at least an inch of dust.
If you use that, it might ease your worries of having your primary means of transport being taken away and gain some peace of mind.
Can I Sell a Car With a Title Loan?
Yes, if you’re done paying off your credit then that makes your title clean and free again-and you’ll be able to sell it without a hitch.
You could also sell a vehicle that you still owe money, but first, you have to close the loan with your lender. Your buyer might be willing to cover your credit, then you and your lender can hand over the title to your buyer – its new owner.
How Do I Get Out of My Car Title Loans?
Before even signing your car title loan contract, ask for all the information about your contract and negotiate as much as you can.
Try to Pay Your Loan Back as Quickly as Possible
If you happen to have extra funds, hold off spending first and start paying off your loans with whatever money you already have.
There will probably be early payment penalties, as lenders still have to do business. But paying this penalty will be more helpful for you than risk delaying your payments until the last minute.
If the prepayment penalty fee is too high, secure the money for the loan aside and then pay it on the expected due date.
Take Out a Personal Loan
Remember how we said in the beginning that banks and a credit union might not be the best option for sudden money emergencies?
Well, when your money emergency has already been settled by your car title loan, you can now take out a personal loan from your local bank and use that to pay off your title loan.
This way, you won’t suffer the annual high-interest rates of auto title loans and risk getting your vehicle getting taken away and the terms will be better.
(Although you’ll obviously have to have good credit or collateral.)
Important reminder: Taking out a personal loan is the last resort and ONLY if it’s literally the only option you have left. Why? Because having to pay for 2 loans is heavy and could lead to an endless cycle of debt.
Are Title Loans Worth It?
For those who need FAST, INSTANT money, and have no liberty to go through the lengthy loan process application of major financial services like banks and such, title loans ARE WORTH IT.
You can get your money in less than a day, without the long and tedious process, countless requirements, good credit score, and even collateral other than your title.
The CONVENIENCE of a QUICK and EASY transaction of applying for title loans is a value no other financial service can give you.
Alright, I’ve Decided! What’s the Loan Process Like?
Step 1: Prepare the Requirements:
- Government-issued ID
- Clean vehicle title
- Your vehicle
- Photos of your vehicle (front, back, and sides)
- Proof of income (pay slip, disability benefits)
- Proof of residence (utility bills)
- Bank account in your name (you don’t need good credit either!)
- 2 to 3 character references
Step 2: Set an Appointment or Complete the Application Online
You could get in touch with your lender’s office by phone so you’re sure they’ll be available to accommodate you when you arrive at their office. (Be extra cautious due to COVID-19 cases)
You could also ask for other information on the loan process.
Or you could also complete your loan application process online (as long as you already have all your required documents with you) for a FAST and HASSLE-FREE transaction.
Step 3: Bring Your Vehicle to the Lender’s Office in Mansfield
- Your lender will assess your vehicle’s value and install a GPS.
- Fill out the application form and they will assess your ability to pay and see how much your loan proceeds will be.
Step 4: Contract
- Negotiate the terms stated on your contract.
- Get all the information. Read the fine print and check if your lender has hidden charges!
- Make sure you review and agree to ALL THE TERMS. Don’t be afraid to ask ALL the questions!
- Sign the contract.
- And you’re all set! Your lender will hand you the money, transfer the money to your bank account, or in any other way that is convenient for you.
Apply for Car Title Loans Now
Now that you have all the information to help you get started and increase the chances of approval, call your lender and book an appointment for an assessment.
We suggest fulfilling the form online rather than perform the process in a physical office due to COVID-19.