Car Title Loans in Shawnee, KS: What You Must Know to Secure Cash ASAP
Money makes the world go round, but it can also be a source of worry.
If you have some unexpected expenses, then a loan has probably already crossed your mind. If you need a loan quickly, title loans may be something you’d want to consider.
But what exactly is an auto title loan, and how do you get one? Keep reading this article for more information on auto title loans!
Car Title Loans: Definition
Title loans, a.k.a., car title loans, auto title loans, and pink slip loans, are a type of loan that uses your car as COLLATERAL.
The advantage these loans have over other loan types you can get your cash quicker, and they are more lenient when it comes to credit scores.
Why Should I Get an Auto Title Loan?
The main reason you would want to get a loan will be if you need cash. This would be mainly for emergencies.
Sure, payday loans are an option, but do you really want to lose your pay as soon as it arrives? Car title loans allow you to pay it back slower, making it better for more costly expenses.
People would usually get a loan for medical emergencies or family emergencies. So we wouldn’t suggest you getting any loan to buy a new flat-screen TV.
So What Are the Advantages of Getting a Title Loan?
Since auto title loans use your car as collateral, they’re less strict regarding the credit requirement. This means that it’ll be easier to have a title loan approved rather than a bank loan.
Another reason you may want to consider a title loan is they get approved quicker than other types of loans. And compared to a payday loan or cash advance loan, you can pay for it slowly.
The Annual Percentage Rate (APR) can vary quite a lot. So be sure you’re aware of what interest rates you’re being offered. The average APR for car title loans rests at around 300%.
So if you are thinking about applying for a loan, make sure it’s for a NEED and NOT personal WANTS!
Pink Slip Loans in Shawnee, KS: Step by Step Loan Process
If you decide to get a car title loan, applying for it in Shawnee is easy! Here’s the loan process for a car title loan in Shawnee, KS.
1.) Call or Fill Out the Online Application
Firstly, you would want to find a good lending institution.
Some loan companies provide extra services to their customers, so be on the lookout for companies that go the extra mile.
Also, take note of the payment options. You want to find a company that is convenient to pay.
You don’t need a bank account because you can wire money through Western Union or Moneygram in some cases.
Once you find a good company you’d trust with your car title and finances, call their hotline or apply through their website online.
Once you submit your application, a loan officer should be in touch with you soon! The application can be approved in as little as 60 minutes.
Make sure you know all the information you need about car title loans by the end of the call. Be sure to clarify the interest rate, the payment method, and other charges.
2.) Prove You Own Your Car: Submit Documents
Once your application is approved, the lender will ask you to submit some documents. This is just so that they know that you own your car and to prove your identity.
A good lender will also make sure you’re capable of paying back your loan, so they’re going to ask for proof of income as well.
Here are documents you will need to apply for car title loans:
- Vehicle title or pink slip
- Your ID
- Proof of Income
- Vehicle registration papers and insurance papers
The sooner you submit your papers, the sooner you’ll get your money!
3.) Get Your Loan Money
Once you submit your paperwork, you should be able to get your loan money!
This will MOST LIKELY be made available through MoneyGram. Your lender can also wire the money to your bank account.
FAQs
Do you still need more information about title loans in Shawnee? Here are some answers to frequently asked questions about topics from the Shawnee laws to the process!
Are Car Title Loans Legal in Shawnee, KS?
Yes, it is perfectly legal in Shawnee.
However, it is important to note that car title loans are not legal in ALL states.
Because it’s legal in Shawnee, you can be sure that you’re NOT getting into sketchy business when you apply for a loan from a reputable company.
Although, Kansas lenders don’t have many restrictions regarding what they can charge. So be wary still of the rates given.
How Do Auto Title Loans Work in Shawnee, Kansas?
Like most car title loans in any other state where it’s legal, you will have to surrender your title to receive loan approval.
In Shawnee, you CANNOT legally borrow money from the SAME LENDER within 60 days of paying off the loan.
There is NO LIMIT to how much money a lender can loan for a vehicle. So the borrower and the lender will have to agree on the amount offered by the latter.
Are Car Title Loans a Good Idea?
This entirely depends on your circumstances. If you need cash for unexpected expenses, then this may be the solution for you.
It can be BETTER than payday loans in the sense that you can pay it back slower and can potentially get higher loan amounts.
Can I Apply for Car Title Loans With Bad Credit?
YES, you can!
The whole point of using your car for collateral would be that they are MORE LENIENT with credit scores. But it’s important to note that a lender may still perform credit checks.
Your credit history is important as well, though most times, the value of your car matters more.
They want to make sure you’ll be able to pay back the loan, so credit history could definitely be a factor in your application.
They are free to call any credit union they prefer. You may have to contact any point person from that particular credit union to have your credit UNLOCKED.
Furthermore, people with a more reliable credit history will get BETTER service and interest rates. So while you can apply with bad credit, there is no guarantee that your loan will be approved.
It can be rejected because of your credit or because the collateral amount was TOO LOW. After all, they’re a business. They would go bankrupt if no one paid back their loans!
At the very least, they are LESS STRICT about credit with title loans than they are with car bank loans.
Will a Title Loan Application Affect My Credit?
Your lender may conduct a credit check, which could potentially change your credit score. If there is no credit check done, then there won’t be any effect on your score.
Other than the application process, it should not affect your score.
What Happens if I Miss a Payment?
Most lenders will give you monthly payments. If you miss these payments, lenders can mark you as delinquent.
The worst-case scenario is your lender can take your vehicle at any given moment.
They would do this to auction it off and use the auction value to pay off part of your loan. You’re still responsible for the rest of the balance, so it’s best not to get in this situation.
If you’re having a hard time paying, make sure you contact your lender so that you can negotiate the terms.
What Should I Do if My Vehicle Is Repossessed?
The first thing you’d want to do is to prevent it. You have to pay regularly and comply with the agreement.
Assuming you failed to do so, there really isn’t much else to do but try to pay back the rest of your loan.
When your vehicle is taken, it’s auctioned off, and the auction money is used to pay back some of the loan money.
However, it’s usually not enough to completely pay for it. So you’re left with having to pay the remaining balance.
TLDR, make your payments.
How Old Can My Vehicle Be to Apply for Title Loans?
Lenders don’t normally care so much about the age of the vehicle. What matters more when you apply for title loans would be the value.
So you could have an old vehicle, but if it has a good value, low mileage, and is in running condition, it will most likely qualify for title loans.
Is It Hard to Apply for Title Loans?
As long as you fully own your vehicle, it should be relatively easy to apply. This is considered fast money, so you should also be able to get it fairly quickly.
The interest rates are pretty high compared to other loans, so it pays to do your research on lenders if you want to get title loans WITHOUT any hassle whatsoever.
Also, be mindful of your payments. You don’t want them taking away your vehicle!
Final Thoughts
A title loan can be your saving grace, especially if you have some unexpected expenses.
Make sure you find a reputable loan company and make your regular payments, or you risk losing your car!
We hope you got all the necessary information about title loans! We wish you luck with your loan process!
So, why wait? Apply for a car title loan today!