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Car Title Loans in Maryland: What You Need to Know
If you badly need QUICK cash for financial help, you should look into car title loans.
Auto title loans in Maryland are processed faster and have flexible requirements compared to traditional bank loans. This means that you can get your loan money on the SAME DAY!
If you're ready to apply for a title loan in Maryland, then you have come to the right place. Here, you can read the basic requirements that title lenders would normally ask you for.
What Are Car Title Loans?
If you are new to this type of loan, let's get you started on the basics.
So, what is a car title loan?
A car title loan is a type of short-term loan in which the borrower pledges their car as collateral. This is also known as an auto title loan.
To be able to opt for these title loan services, you must own the car free and clear. Title pawns definitely offer you the best deal since you only have to give up your car title to get loan money.
If you fail to pay for the loan amount, then title lenders take ownership of your car.
Requirements Needed to Apply for Title Loans in Maryland
Maryland residents will need the following to apply for a Maryland title loan:
1. A Car Title
To get cash loans, you are obviously going to car titles. You need to show physical possession of the vehicle title. This is an essential requirement for the pre-approval of your loan plan.
2. Proof of Income From Any Source
To proceed with the payment plan, you have to show any sort of proof of income.
This will serve as their "insurance" so they know you have the means to pay back the loan amount on the agreed-upon date.
It could be alimony, child support, Social Security, workers' compensation, disability, etc.
3. Proof of Residence
To avail of the various title loan services, you must be from the state.
Maryland title loans are exclusive to those from Maryland. Bring with you any sort of proof to show that you are from this state.
E.g., You can show a utility bill or a government mail.
4. Other Requirements for Online Title Loans
Besides these, you will be asked to provide the following information:
- An accurate description of the vehicle (make, model, year, mileage, etc.)
- Photo ID (Type of ID and ID number presented by you)
- Amount of the loan
- The agreed-upon repayment date of the loan and the amount due
- The monthly rate and charges
- Your full legal name, address, contact number, and date of birth
How to Apply for a Car Title Loan in Maryland
Scurrying to find cash options to settle your dues? Well, you should definitely CONSIDER title loans in Maryland.
For the pre-approval of your loan, simply fill up the application form online or in person. Just head to your nearest Maryland department for title loans!
Here are the steps you should follow to apply for the title loan and receive cash on the same day:
Step 1: Fill Up an Application Form Online
To begin your title loan application, you will need to fill up a form.
Nowadays, you can just apply online and input your information via an application form. Write down all the contact information that they need from you.
By submitting the application, you express written consent that certifies that you are a US resident, at least 18 years of age, and authorize the lender, business owned by the site, and their affiliates to contact for your application.
If you have any concerns or queries, you can reach out to loan officers. Simply look up their contact information and give them a call.
Step 2: Look For the Nearest Store That Offers Title Loans
After you apply online, look for the nearest store that offers title loans. You can either send in the title loan application form yourself or fax it and have it sent to the store.
Once pre-approved, prepare and send the necessary documents and visit a title loan in Maryland for verification.
Step 3: Receive the Money
You will receive the loan amount on the same day, meaning you can go to the store where you applied for the title loan, or you can opt to receive it via direct deposit in your bank account.
How to Settle Title Loans in Maryland
Payment agreements on the agreed-upon loans vary. Usually, most title loans are due in 30 days, although some can be due in as few as 15 days.
While less common, some title loans require borrowers to pay lenders back in installments, usually within 3 to 6 months.
At the end of the first month, the principal amount plus the interest accrued will be due. But you probably won't be able to pay the whole amount (most can't).
So, you'll just pay the interest and roll over the principal to the next month, at the end of which you'll owe the original amount plus another heaping helping of interest.
In Maryland, title loan amounts are received in an INSTANT, and title loans work with lenders with competitive rates, so you know you're getting the best deal!
BUT, you have to watch out for those interest rates — they can really empty your wallet.
The Benefits and the Downsides of an Auto Title Loan
Applying for title loans is easy because of its convenient terms. Such as no credit check, meaning bad credit is accepted, and a vehicle title is almost enough to avail of the title loans in Maryland.
To add, some of the benefits of getting affordable title loans (Maryland) are as follows:
- Fewer car limitations
- A low-rate guarantee
- You will receive the cash loan on the same business day
The major downside to title loans is cost. Like all predatory lending practices, they're expensive, consuming about half of an average borrower's gross monthly income.
In addition to this, these title loans can be incredibly difficult to pay back. This often leads to borrowers "rolling over" the loan month after month.
If you cannot successfully pay the title loan, it could incur title loan interest rates, or if you can't repay the loan in full, the lender may repossess your vehicle.
This only leaves you not only in debt but without a car as well.
What Do Maryland Title Loan Laws Regulate?
Maryland title loans require lenders to be licensed, which discourages any illegal title lending activities. Title loans in Maryland protect consumers against fraud!
Any false advertising and selling or charging for any kind of insurance are considered predatory actions, and lenders may be fined under Maryland law.
Under Md. Code Ann. Law II § 12-Com. 301 et seq., consumers are protected. The official body that controls the lenders of Maryland and protects consumers' rights is the Maryland Department of Labor, Licensing and Regulation.
Adding to this, every borrower must consider title loan interest rates and terms, as well as any Maryland laws and regulations that may apply to title loans (Maryland).
In other matters, Payday Loans are considered by some states legal, some illegal, and some restrict them in terms of amounts and interest.
Maryland is having none of this legal loan sharking nonsense, and as such, title loans and payday loans are regulated by Mayland laws to protect consumers.
If you ever encounter these, you are free to take legal action against those businesses. Keep the free state FREE from predatory loans!
Frequently Asked Questions
What Are the Main Title Loan Rules in Maryland?
Loans within these amounts that charge more than the listed rate may be illegal under Maryland Law:
- Loans of $1,000 or less: The maximum interest rate allowed by law is 2.75% per month or an annual interest rate of 33%.
- Loans greater than $1,000 but less than $6,000: For loans greater than $2,000 or less than $6,000, the maximum interest rate allowed by law is 2% per month or an annual interest rate of 24%.
- Loans greater than $6,000: For loans greater than $6,000, the maximum rate allowed by law is generally 2% per month, or an annual interest rate of 24%, subject to certain exceptions.
How Do Title Loans Work in Maryland?
- Decide what amount you need.
- Fill out an application form online or in the store near you.
- .Provide your car title as collateral to the lender.
- Get 25% - 50% of the car value in cash or into your bank account the same day.
- Repay the amount borrowed.
Single-payment title loans are paid back in a lump sum within 30 days and have an average APR of 300%, greatly resembling Payday Loans.
Can I Still Apply for Title Loans With a Bad Credit?
Title Loans in Maryland are secured by your vehicle, meaning to say that bad credit is OK. You'll still be able to get a cash loan despite this.
Most lenders actually don't do a credit check. Your vehicle is good enough collateral to make up for the risk of loan default!
It's very simple if you don't pay back on time — the interest rates of your cash loan go up, or the company can take hold of your car in exchange for the money you owe.
What Are Alternative Cash Options Besides Title Loans in Maryland?
- Traditional bank loan
- Pawn shop
- A cash advance on credit cards
- Take a new job for extra money
- Borrow money from friends and family
- Consider a cash advance via your employer
- Look for short-term cash loans from other organizations
- If you're in debt, search for help at some Maryland local non-profit credit counseling service
Before getting into a loan, even if you so badly need money, take a look and compare the rates first. Not doing so can cause you great financial harm in the future.
Take a step back and look at your options first before deciding on a loan!
How Much Can I Get From My Pre Approved Title Loan?
You can usually borrow 25% to 50% of the value of the car. According to the FTC, the average loan amount is $100 to $5,500.
Some lenders allow you to borrow up to $10,000 or even more. Once you're approved for a loan, you'll give the lender the title to your car.
You'll get funds paid quickly in no time with the money you'll get!
Will Title Loans Reflect on My Credit Score?
Title loans do not reflect on your credit score. Again, this is because your car is a good enough collateral for the loan.
Furthermore, lenders do not report your payments to the credit bureaus, which means a title loan won't help your credit scores either.
Can I Apply for Maryland Title Loans With No Inspection?
The lenders need to inspect your car before they approve your loan. This is necessary to estimate its value and determine what amount of title loan you are eligible for.
However, if you apply online, there may be a possibility that you can get approved with no inspection in Maryland.
You just need to send over the following:
- The necessary documents
- Pictures of your car
Verdict: What We Actually Know and Think About Title Loans
Did you know that in Maryland, the average family size is 3 and the gross median monthly rent is $1,343?
The normal median income for a household in Maryland today sits at pretty much $85,458, with 9% of the populace living beneath the government destitution line.
Even so, you should proceed with caution.
Even if you are in DIRE need of cash, it's best to look for other alternatives because opting for a car title loan is a high risk.
You can end up in much debt, and to add to that, you'll also lose your vehicle in the process.
HOWEVER, it's your money and your risk! We hope this guide helped you figure out what you need to do next.