Car Title Loans In Sterling, Virginia
There are times drastic situations will call for drastic measures— if you’re in desperate need of some quick cash, there will be some risks you need to take to get it.
Thankfully, it doesn’t have to be that scary or difficult. A loan application can be long and tedious, but car title loans aren’t as nerve-wracking!
If you own a vehicle, applying for a car title loan is a great way to get the money you need as soon as possible.
Never Heard of a Car Title Loan?
Some quick facts on title loans:
- A car title loan is a short-term and high-interest rate loan that any borrower that owns a vehicle can apply for.
- Also known as pink slip loans, title loans are low-risk to lenders because borrowers put up their vehicle as collateral or security for the loan.
- This means if a borrower defaults on the loan, lenders have the right to repossess the borrower’s vehicle to compensate for what they cannot pay.
Instead of going to a credit union or some other big financial institution for a loan and going through a long, rigorous credit check, you can go through a speedy loan process by applying for a title loan.
You can get your cash almost instantaneously or have it sent straight to your preferred bank account— the perfect cash solution to a money problem you might have to face!
BOTH federal and state legislature regulate car title loans, so some specifics on loan terms and amounts will differ in Sterling, Virginia.
You may refer to the Virginia Consumer Credit Code for pertinent information regarding loan amounts, interest rates, and annual percentage rate (APR) in Sterling, VA.
However, most car title loans will work and look similar to this:
- You apply to borrow a single-payment title loan of $1500. The lender charges a finance fee of $50 and lends you the money for 14 days with an interest rate of 10%.
- You will pay the finance fee up front and get your money in cash or sent to your bank account within 24-48 hours after the approval of your loan.
- At the end of the 14 days, you will have to pay back the entire loan amount plus interest, which means you owe a total of $1650.
- Including the finance charge of the lender, borrowing $1500 will cost you a total of $1700.
Auto Title Loan Application In Sterling, VA
Check out what you’ll need for car title loans below if you’re interested in applying for a car title loan in Sterling, VA!
Please go over each step and requirement thoroughly to have COMPLETE KNOWLEDGE of what to expect when applying for such loans.
Another reason why car title loans are so popular in Sterling, VA, is because there aren’t too many requirements you need to submit during the loan process application:
- Vehicle title
- The title SHOULD be lien-free. This means that the title is clean, there is no outstanding balance on the payment for the vehicle, and you own it outright.
- It is also preferred that the title is solely under your name ONLY. This makes it easier legally for lenders to hold you accountable for the title loan.
- Sterling residents’ ID or other proof of residence
- Driver’s license or any other government-issued ID
A lender may also require you to provide either proof of income or employment, photos of the car or vehicle you’ve applied with, as well as some bank information.
Title Loans: A Step-By-Step Process
- First, you should research a reliable licensed title lender and get their contact information.
- You can call ahead and talk to their loan officers to get a quote on interest rates and loan amount. You can also ask for pre-approval and specific requirements for the loan application. Luckily in Sterling, you can accomplish most car title loans partially or completely online.
- After filling out the application and gathering all the required documents, you will have to submit them.
- You should also bring the car or vehicle you applied with when submitting the requirements.
- Then you’ll be negotiating and going over the terms with the lender before signing the loan contract.
- It would do you good to remember that the lender should give you full disclosure on the complete loan terms, including loan amount, interest rate, finance charges, payment deadlines, and APR.
- Other important information that you must include in the contract is the names of the borrower and lender. Also, DON’T FORGET to provide a detailed description of the vehicle.
- Be sure to check for a prepayment clause as well!
- After signing, you’ll be able to receive your money in cash or wired to your bank account as soon as the loan has been processed.
Paying Back the Loan
There is more than one way to pay back loans, which should be stipulated in the contract. It is usually one of these two:
- A single-payment title loan payment scheme requires paying the total loan amount in a lump sum at the end of the loan’s term. This means all the money you borrowed with interest.
- An installment title loan payment scheme requires the borrower to pay back an increment set amount on certain dates until the end of the loan’s term. Just as with the other specific details, they will depend on what was agreed upon in the contract.
Note that if you default on title loans, your vehicle will be repossessed by the lender:
- As the security for the loan, the lender will automatically have the right to repossess and sell the vehicle.
- You may buy back the vehicle, although it would cost you even more. This is because lenders will improve on the vehicles (via repairs or new car parts) before selling them to compensate for the lack of funds.
At this point, when you’re unable to pay back your loan on time, loan rollovers can sound tempting, but they are not always the best idea. There are definite pros and cons:
- Extending the terms of your loan may prevent you from losing your car.
- Eventually paying it all off may improve your credit.
- With equally high interest rates, loan rollovers can also lead to a never-ending cycle of loans and debt.
Here are answers to some questions you might still on auto title loans and the loan process in Sterling:
1 Are Title Loans Legal in Sterling?
In Virginia, title loans are legal, but lenders must follow strict guidelines.
To avoid getting scammed or involved with anything illegal, ensure that the lender you’re dealing with has obtained a license to conduct this sort of business service.
2 Will I Qualify Even if I’m Unemployed?
In Sterling, the application for car title loans requires proof of income and not necessarily proof of employment.
Therefore you can still qualify for title loans if you’re unemployed, though the amount you can borrow may be less.
3 Can I Get a Car Title Loan Even if I Have a Low Credit Score?
Here’s the thing.
There’s NO GUARANTEE you’ll be granted loan approval if you show any signs of bad credit.
Your title loan application MIGHT still get approved regardless of your credit score.
However, MOST lenders will most likely conduct a credit check to determine whether you have what it takes to pay the loan on time.
Also, you WON’T receive a lot of cash compared to those who possess higher credit scores.
4 How Much Can I Get for a Title Loan in Sterling?
In Virginia, the amount you can usually get with car title loans is anywhere between $100-$50,000. However, title loans are also open-ended credit, which means:
- While there are caps on how much APR lenders can charge, there is no maximum amount of money a lender can loan. There has to be an agreement between them and the borrower.
- The amount you can borrow will mostly depend on the vehicle’s equity value used as collateral.
5 How Fast Can I Get My Money?
The title loans industry is a swift business, with most lenders promising same-day approval and cash within 24-48 hours on their loans.
6 Do I Have Other Options?
There are other loan service options available to you if you do not own a car or vehicle. Just note that interest rates and up to how much you can borrow will differ for each.
You can opt for:
- Payday loans
- Personal loans
- Installment loans
Car title loans can be a great option when you’re living in Sterling, even more so if you find yourself in trouble due to unreliable credit history.
Still, title loans aren’t for everyone and should be tread on lightly. Only apply for these short-term and high-interest loans if:
- You are certain you’ll find a way to pay off the debt on time.
- The situation is dire, and you have NO other options.
- You have done your research and prepared as much as you can.
We hope this article sheds some light on what it’s like applying for title loans as a resident of Sterling!