Are you strapped for cash? Don’t know where and which people to borrow cash from?
Fear not, for title loans in Wilmington, Delaware, are here to the rescue.
Getting one is a fast and easy way to get financial help in Wilmington, DE. The concept is pretty simple. Let’s go through what this is and how you can get it for any emergencies that may come up!
Let’s Expound More on the Car Title Loan
You may have heard of the term “car title loan” (in Wilmington, DE) or “title pawn” (in some states), but what is it?
If you own a vehicle (car or motorcycle) and need quick cash fast for your business or emergencies, you can use that title as collateral.
The title has to be lien-free. This means that you own the car, and you don’t have any outstanding debts or judgments against it.
Just think of it as a clean title.
When you get one of these title loans, your title will have a lien placed against it. You also need to surrender a hard copy of your title to the lender of your choice.
Once you’ve repaid everything, your lender gives the title back to you and releases the lien.
Advantages of an Auto Title Loan in Wilmington DE
Whether you’re getting one in Wilmington or elsewhere, these kinds of loans aren’t all good. However, they do have some advantages over other loans.
The best part about title loans is that they’re:
- Substantial cash
It’s the kind of thing you go for if you’re in a pinch or if you don’t have the cleanest of credit scores.
Now, these aren’t the only kinds of short-term loans in the city of Wilmington that offer people the same convenience.
Let’s see how it differs from its brother: PAYDAY LOANS.
What Are Payday Loans?
These cash loans are similar to a title loan in Wilmington, DE.
However, instead of using the title of your car as collateral, you give a personal check for the sum you want to borrow, plus lender’s fees.
The other option is to authorize the lender to take the money you borrowed, plus fees, from your bank account through electronic channels.
These are usually just small, short-term agreements for about $500 or less. You’ll have to repay it within 2 to 4 weeks.
If you don’t make the proper payment on time, the lender can use either cash the check or debit the sum from your bank account.
Lenders will typically charge anywhere from $10 to $30 for every $100 that you’ll borrow.
If you compute the rate of that on a per annual basis, the annual percentage rate (APR) translates to a whopping 301%.
There are even instances when the APR can reach 1000% EXCLUSIVE of fees they may charge.
How Are Title Loans Different From Payday Loans?
Title loans are also short-term agreements. It typically lasts between 15 to 30 days. However, they differ in several things.
First, instead of issuing a check or authorizing the lender to debit your account, you use your car as collateral.
Second, the cash you can borrow is bigger. This is usually about 25% to 50% of the value of your car.
Again, this excludes other charges or fees, like processing, document, and origination fees. That’s on top of any add-ons (i.e., roadside service) that the terms may require.
What Happens if You Don’t Pay Title Loans on Time?
Scenario #1: The Roll-Over
Lenders will usually offer you the option to roll over your loan, though this may not apply for all lenders in Wilmington, DE.
Costs increase with rollovers. If you can’t repay when it’s due, the creditor may let you roll it over into a new loan. But rolling over will add more interest and fees to the total you owe.
Can I Get Car Title Loans Even if I Have Bad Credit?
We want you to know the true and accurate picture.
Some resources or people might tell you that car title loans don’t require credit checks or that you can get one even with a bad credit score/rating.
This isn’t guaranteed.
Depending on your status, some lenders in Wilmington, DE, MAY still perform credit checks. What’s vital in title loans is your ability to pay for them.
This means that if you’re bankrupt or have other serious financial issues, it will be more difficult for you to take out this loan.
But if you can apply for car title loans despite your poor credit and get that approval, you’ll receive a worse deal and higher interest compared to another borrower with better credit.
So, REMEMBER that bad credit scores mean you’re not guaranteed a car title loan approval in Wilmington, DE.
Some people in Wilmington, DE, may still allow it after performing credit checks to ensure you can pay for the loan.
Car Title Loans: How to Apply in Wilmington, Delaware
What Do I Need to Get a Title Loan in Wilmington, Delaware
The most important thing you need in Wilmington, Delaware, is a vehicle with enough equity in it. What is sufficient equity is up to the creditor to determine during the application process?
To get title loans in Wilmington, DE, creditors will use your car’s equity and your job as credit.
This means you have to show that you can afford the monthly installments on your title loans in Wilmington, DE.
If you need money fast, borrowing money this way in Wilmington, DE, might be a good answer for you.
Paperwork Needed for Getting a Car Title Loan in Wilmington, DE
When applying to borrow in Wilmington, Delaware, you’ll need to bring these things to your chosen lender:
- Car and proof of ownership
- Clear Car Title
- Valid Government-Issued ID (usually, your driver’s license)
- Proof of income (of at least $1500 a month)
- Proof of car insurance
Application Process for Applying in Wilmington, DE
This is pretty simple in Wilmington, DE. We recommend checking to see if an online application is available, so you don’t have to waste your time, gas, and expenses showing up in person.
Here’s the general process:
- Apply online.
- Submit your requirements.
- Wait for the creditor to verify your requirements and determine your ability to pay.
- Receive approval.
- Decide where to receive the cash via deposit or check.
- Get your cash!
Information to Look For When Applying for Vehicle Title Loans
Under federal law, lenders are required to be upfront and to disclose certain details. These requirements also apply in Wilmington, Delaware.
Make sure to watch out for these details when reading your agreement.
- Cost of the Loan – Lenders have to tell you this in writing and before you sign the loan agreement.
- Finance charge – This must be in a dollar amount.
- APR (in percentage) – The APR is based on how much you’ll borrow, the monthly finance charge, the fees (i.e., processing fees, document fees, and other charges), and how long you’ll borrow.
Make it a habit to read the loan agreement carefully before signing anything! Check to see if there are any late and roll-over fees. Always be willing to ask questions if you’re uncertain of anything.
Car title loans are a fast way for people to borrow money when their business or personal lives face an emergency.
Indeed, applying and securing title loans is a GREAT way to keep yourself financially afloat in Wilmington, DE.