Seeking a title loan can be a harrowing process, especially if you are unfamiliar with the various state laws that can affect your chances of receiving financing. Some states are better than others in terms of ease of access to financing through a title loan. Here’s what you should know about the differences in state laws governing title loans. In addition to this you’ll be able to see the best and worst states to seek this type of financing.
Key Questions About Title Loan Laws by State
Reading time: 3 min 32 sec
How Title Loans Work
In states like Nevada, title loans work by signing the creditor on as a lienholder over the vehicle you are putting up as collateral. As a lienholder, the lender’s interests are covered and you can receive financing based off the value of your car.
Using your car title as collateral means that you can get access to money very quickly, depending on your credit profile.
The Challenges of Receiving a Title Loan
Finance firms know that anyone can be hit by unexpected troubles and fall on hard times that leaves them scrambling for financing in a market that has grown cold since the 2008 troubles. The very mention of 2008 still makes many financiers tremble, while leaving a lasting impression on creditors. This has resulted in a tightening of the purse strings and more stringent requirements for applicants seeking financing.
Title Loan Laws in Different States
States that Support Easy Title Loan Facilitation
The following states have laws that are generally friendly to title loans and make them simple to apply for and issue. These states are optimum for getting a title loan, however you can still usually get a title loan in the states that have placed restrictions on them as long as the lender knows how to navigate the loopholes.
- New Hampshire
- New Mexico
- South Dakota
You should have no problem getting a title loan in these states as they have very limited regulations on title loans in general.
For example in Utah, you can get a title loan on a vehicle, motor home, or boat. As a more flexible state for title loans, Utah is a welcoming state for those seeking this kind of financing.
In Texas there is no cap on title loans, but the terms of the loans cannot be in excess of 180 days.
Illinois is one of the more costly states to take out a title loan as the interest rate can exceed 36%.
Missouri is carefully regulated with the customer in mind and still allows for relatively easy access to title loans. Some of the requirements that Missouri state law mandates are for the lender to keep receipts of payments made in cash. In section 20 CSR 1140-29.010 (1), the law requires lenders to supply potential borrowers with the information outlined in 367.525 which requires the creditor to fully disclose the maximum interest rate they may charge. These laws help protect customers from predatory lending practices that can do serious damage.
Next are the states that only allow title loans through loopholes. Keep in mind that although they are facilitated by loopholes, title loans are still very much accessible.
States That Restrict Title Loans
These states have regulations on title loans, making them more difficult to acquire, however you can count on perceptive finance businesses to find legal ways around them. Lending companies like Montana Capital Car Title Loans for example, can still issue title loans in the state of California.
States with more restrictions include:
- South Carolina
If you are living within these states and looking for a title loan, it is certainly still possible with the right documentation and lending partner. In fact, Montana Capital Car Title Loans is the premier choice for seeking a title loan in the state of California, which is one of the restrictive loophole states.
Use Montana Capital Car Title Loans for Your Title Loan Needs
Montana Capital Car Title Loans is different from other firms in the industry in that they care about their customers and their financial sustainability. Don’t think of Montana Capital Car Title Loans as a creditor, think of them as a partner that can see you safely through tough times more comfortably than many of its competitors. You are unlikely to find a more accommodating creditor in the state of California.
Don’t hesitate to reach out and ask about how they can help you get access to extra cash with a title loan. They’ll walk you through the requirements and make sure you are comfortable in taking out the loan.
Get a hold of Montana Capital Car Title Loans right away; they’ll help you navigate the title loan process. You won’t find a better deal anywhere.