Car Title Loans in Youngstown, Ohio: What You Need to Know
If you’ve ever needed cash INSTANTLY, you’re probably aware that a bank or financial institution CAN’T give you a cash advance instantly.
So what’s the next BEST THING? You can opt for a car title loan!
Title loans are widely popular in the United States of America. In fact, you can immediately apply for one in the state of Youngstown!
Continue reading below to know more about the Youngstown title loan process.
What Are Car Title Loans?
One of the FASTEST and LEGAL ways to get cash is through a title loan.
Car title loans, also known as auto title loans, are secured loans that a lender grants you in exchange for the title of your vehicle.
A car title loan is only a short-term loan that you have to pay back to claim your vehicle’s title.
How Car Title Loans Work
Car title loans are very SIMPLE and QUICK.
You can apply either online or visit the car title loan shop. Afterward, the car gets assessed by the lender directly, and then the car’s equity value is determined.
After such, there is the drafting of the agreement, handing over the title, and then you’re set to leave WITH your car.
That’s right — the lender just gets a hold of your vehicle’s TITLE until after you have settled the loan.
You can continue driving it as much as you need to!
Why Auto Title Loans Are Preferred By Many
This short-term financing is meant to address your immediate cash needs — even on the same business day.
This is one of the MAIN reasons why it is the most popular choice amongst those who need a cash advance.
Another reason why most people prefer this is because it doesn’t require many loan terms. In fact, SOME but NOT ALL lenders look into your credit score or income.
We’ll look more into that later on.
Car Title Loans in Youngstown, Ohio: The Requirements
Here are some of the general loan documents you should have with you on the day of the loan application.
You’ll also need these if you choose to apply online.
1. Proof of Income
First on our list of required documents is the proof of income.
If you don’t have any proof of income, you can show bank statements instead. Although, this still really depends on the title loan lender.
Proof of income is needed to CERTIFY that you can pay back the loan amount in time.
But don’t worry too much about this — Youngstown title loans DO NOT use this to determine your minimum loan amount.
This basically serves as one of their “assurances” before they provide you the short-term cash loans.
2. Proof of Residency
Just like traditional bank loans, an auto title loan will also require proof of residency.
Unsecured loans and an auto title loan are NOT legal in all states, so you have to present your residency documents. This will prove that you legally reside in a state that does.
You can research more about Ohio title loan laws and regulations to check the rates and terms.
3. Photos of the Car
If you are going to file an application online, you need to have a set of car pictures.
Loan amounts by lenders VARY based on the overall QUALITY of your car.
This means that if your car is in pristine condition, you can be granted MORE MONEY from the title loan.
4. Vehicle Title
To push through with the loan process, you have to be the OWNER of the vehicle. You cannot apply for an auto title loan for someone else’s vehicle. That is AGAINST the law.
This document will prove that you are the rightful owner and that the car is free from any dues.
The loan agent may also want to check out the insurance of the car. This is for their personal gain to be protected in case of car damage or loss.
5. Valid ID
A valid ID is used to certify that all the information you have listed on your auto title loan is factual.
Government-issued IDs are usually required by the institutions of title loans to make it easier for the lenders to approve the loan.
6. Reference Information
For the lender to properly assess your personality and characteristics, it has been a standard that Youngstown title loans require reference information.
About 2 to 3 references are good enough. These references do not have to live in Youngstown.
They’ll be needing the following information from them:
- Full name
- Address
- Contact number
- Relationship with you
How to Apply for Youngstown Car Title Loans
Here’s a step-by-step guide to properly apply for a title loan.
In 4 easy steps, you can easily get a cash advance in no time!
Step 1: Pick the Right Lender
The first thing you need to do is look for the right lender.
Search the internet and different shops if you need to! Because title loans and payment terms VARY per company.
There are companies out there that offer competitive rates, some that don’t do credit checks, and some companies that allow you to negotiate the terms of the deal.
To get the most out of your vehicle title, it’s best to compile a list of title loan companies before giving up your vehicle title to companies that don’t offer competitive rates.
Once you’ve found the RIGHT title loan company that suits your desired loan amount, you can now move forward to step 2.
Step 2: Apply Online or Directly Go to the Title Loan Company
You can apply online or directly go to the title loan company.
Applying online is the most convenient choice, so if you do your application online, you have to go to their website and fill out the form.
If you decide to go to the title loan company, there will be a lender ready to assist you.
NOTE: Prepare to be asked more information about your as they might check things like your vehicle identification number (VIN). Some places to look for this are in the side of the doors, the dashboard, in your insurance paper, or registration.
Step 3: Prepare the Necessary Documents
To properly process your loan amount, you will need the following documents:
- Proof of income
- Proof of residency
- Photo’s of the car
- Vehicle title
- Valid ID
Make sure that you have all these documents on hand because these are necessary to get your loan pre-approved.
And if you have these documents already, it’ll just make the process faster, and you can get your money instantly!
Step 4: Title Loans Approval
The last step is to wait.
Once you agree to the loan terms, such as lenders’ interest rates, pre-payment penalties, and the likes, you’ll then hand over the title of your vehicle.
To add to this, these short-term loans get approved on the same business day. One of the perks that people love about title loans is instant approval!
These are a definite game changer! Gone are the days when you need to wait 2-3 working days for the approval of your loan.
Once your loan is approved, you will receive a direct deposit from the loan company. The money will then reflect in your bank account ASAP.
Benefits of a Car Title Loan in Youngstown
Car title loans have a ton of benefits!
It’s definitely something that people would choose over a payday loan.
#1 The Approval Rate Is High
SOME companies almost usually approve all title loans.
The thing about this is that sometimes, these loan companies do NOT check your credit score. Meaning to say that sometimes a bad credit history is OK.
With banks, your loan will be deliberated upon thoroughly and you can either be accepted or rejected after waiting for some time.
But with title loans, you have an assurance that you will receive the loan almost IMMEDIATELY.
But don’t be too complacent with this as this does not apply to ALL car title loan companies. In Youngstown, it depends on the loan company you choose.
#2 Fast Process
Processing a loan has never been this fast!
Once the lenders have properly assessed your car, they will then lend money directly to your bank account or through other modes of transfer.
With this in mind, the process can become QUICKER once you are matched with a lender based on the application that you have completed online.
#3 Reliable Customer Service
Youngstown title loans are very reliable.
There is a customer service hotline you can reach in case you have any queries about title loans.
Some of the questions you might want to consider asking about are:
- The lenders own interest rates.
- Bad credit score.
- The works of a short-term loan.
- Instant pre-approval.
#4 Convenient Payback Scheme
Car title lenders, including small business loans, typically offer you a convenient payback scheme.
This means that you, alongside the lender, can draft out an installment plan so that you can pay the loan they give.
This ensures that you can efficiently and effectively pay the loan back when the contract ends!
#5 Keep Your Car
Auto collateral loans in Youngstown are so great because you get to KEEP YOUR CAR!
This is another thing to love about title loans — no credit check, PLUS you get to keep your car.
If you aren’t aware, the reason why you get to keep your car is that the lender will only take hold of the TITLE of your vehicle.
The title of your vehicle is enough collateral for them once they lend you your desired loan.
Disadvantages of a Car Title Loan in Youngstown
The advantages of auto title loans are so compelling, but these sort of loans also have their disadvantages:
#1 High-Risk
Believe it or not, auto title loans are HIGH risk. This can especially be true for those with poor credit.
You could end up in a ton of debt if you fail to pay back the amount, and you could also end up losing your car in the process.
It doesn’t end here because the lender has the right to add in a tracking device and starter-interruption device, which they can control if you missed the payment date.
So, you shouldn’t practice bad credit when dealing with this sort of loan because they will be out to get your car if you cannot draft out the contract deal properly.
#2 Interest Rates are High
The most common interest rates are 25% and up. In addition to this, you, the borrower, will have to pay fees for documents and processing.
This is a short-term loan, so if you do decide to lengthen the terms, you can still do so. But this can get expensive as well.
Why? Because you are INCREASING the interest fee plus some other processing fee that comes with the extension of the loan.
Some Reminders When Applying for an Auto Title Loan
Here are some of the things that you should keep in mind:
Misconceptions About Bad Credit
One misconception that people often have about car title loans is that these companies don’t do a credit check.
While that may be true for some, it ISN’T something applicable to all.
Lenders would also like to know that you have a good and clean record when it comes to paying off debt.
While it isn’t a determining factor, it definitely is something that can SPEED UP the process of your auto title loan.
The Loan Agreement
Next, you want to keep in mind the drafting of the loan agreement.
Make sure that you have read the contract thoroughly.
If you come across something that you don’t understand, then clarify it first. Don’t rush to get the money because it might end up costing you more in the next month!
Negotiating the Terms
As much as you can, try to negotiate the loan terms. For example, you can ask for a lower interest rate or a lower monthly payment.
You can even extend the duration of your loan payment if you think that 30 days is too short.
Frequently Asked Questions (FAQs)
You probably still have some queries about auto title loans, so we’re here to answer them as thoroughly as we can.
How Long Does the Loan Process Take?
The process is very SWIFT and EASY.
You can receive your money in as little as 15 to 45 minutes.
Car title loan prides themselves in providing their clients with the money they need on the spot and on the dot.
Because of this, loaning car titles has become something that people have resorted to when all else fails.
Can I Pay Off My Title Loans Earlier?
Definitely.
You can pay off your title loan in advance. There are no rules that state that you can’t. This is definitely better so that you don’t end up missing the deadline for your payment.
HOWEVER, some companies charge you if you want to pay the amount earlier, but there are other companies that don’t.
So make sure you read the terms and conditions thoroughly before proceeding.
How to Qualify for a Car Title Loan?
You can qualify for a car title loan if you have a car and if your car has NO pending dues with the bank or with the car company.
All you need to bring as collateral is the title of your car’s vehicle. After such, the lender will assess your car to determine its value.
During this assessment, they will determine if your car’s overall appearance reaches the minimum amount that can be loaned.
If you wish to do this in advance, you can visit their websites to help determine the eligibility of the value of your car for a title loan.
Keep in mind that these websites DO NOT make credit decisions. These websites only work to determine the eligibility of your car.
Can I Apply for Two Auto Title Loans in Youngstown?
Yes.
You can apply for two title loans as long as you are the owner of the car.
Do note that the lender will write you up to a separate contract.
You CANNOT use two vehicles for the same contract. They must be different!
Is My Personal Information Safe When I Apply for a Title Loan in Youngstown?
Yes.
Your information will be securely stored in the database of the loan company.
These companies value the trust of their customers, so they wouldn’t want to compromise that.
Does a Title Loan Affect My Credit Score?
NO.
A title loan DOES NOT affect your credit score because you are using your car to get money.
And since you are using your car, you don’t need to put that on your credit score as a debt.
In fact, people with bad credit history use this since SOME companies don’t do credit checks anymore.
Are Auto Title Loans Better than Payday Loans?
There are some considerations to look at.
In payday loans, you do not lose any of your property compared to a title loan.
In payday loans, you sign a deal that says you will give the loan company your next paycheck in exchange for advance cash.
In title loans, on the other hand, you can risk losing your car if you fail to pay. Plus, interest rates are high if you rollover your loan.
Although, payday loans lend you less money compared to a title loan.
Given these considerations, we HIGHLY SUGGEST that you opt for these 2 HIGH-RISK loans if it is only the last resort.
The Takeaway
Only resort to this type of lending company IF you have no other choice.
There are other ways to borrow money if you are in desperate need. Because again, the risks are very high when applying for title loans.
Here are some other alternatives that you can try.
- Borrow from a friend
- Borrow from a relative
- Find an extra part-time job
- Negotiate with creditors
- Credit and debt counseling
It’s better to have all your choices laid out before deciding to go for a title loan. Because before you know it, you’ll be stuck in an endless debt cycle, and no one wants that!