Let's Discuss Car Title Loans in Arkansas
If you're short on cash and need funds paid quickly, title loans can be a tempting option. It's instant, easy, and Arkansas title loans are known to accept even a bad credit score.
And while it's true that a car title loan can be a situation's only viable option, you may want to read through this article first before you submit that loan application.
Arkansas, known as "The Natural State," features a diamond shape and stars on its state flag.
What Are Title Loans?
Title loan services are actual businesses that provide real financial assistance. It's a popular choice because most people can receive immediate help such as emergency funding through this service.
A title loan is a short-term loan known as auto title loans, car title loans, and pink slip loans. Don't get confused; they all mean the same!
In simple words, lenders give you money based on your car's value. That same vehicle title acts as collateral while you fulfill the payments. If you fail to pay off your debt, you will lose your car.
Requirements for Title Loans in Arkansas
One of the reasons people opt for an Arkansas title loan is the convenience. It's easy to apply, and you can get pre-approved or even cash out the loan amount on the same day.
Here are the basic documents for Arkansas. Note, however, that different agencies might have varying additional documents.
Application Form
First and foremost, you need to fill out an application form. Some business-owned loan services may also require express written consent to prove that you agreed with the deal.
After which, you must submit the form and the following documents below.
Vehicle, Vehicle Title, Vehicle Insurance
Of course, your motorcycle and car titles are the most crucial in this title loan process. You will have to show the legal title and proof of your vehicle.
These documents will help them determine whether or not your car qualifies for the loan. As mentioned, the money you'll get DEPENDS on the value of the vehicle.
Indeed, you can expect that you'll get a higher loan or better terms if your car model is more expensive or is a later version.
It follows that you must present the actual vehicle to the lenders.
Some require you to surrender the car and get it back once you're fully paid, while some allow you to still use it throughout the loan period.
Additionally, it helps to provide proof of insurance. In short, you must disclose EVERYTHING correlated to the car.
Documents on Personal Information
These are the standard documents that confirm your identity. To give you an idea, here's a quick list of required documents:
- Government ID or driver's license
- Bank account details and credit score
- Proof of residence
- Proof of income
Government-Issued I.D.
All title loans services, or any other services for that matter, will require you to present an official ID. This is to confirm your identity concerning the title you're claiming to be yours.
Examples would be a passport or any license.
Bank Account Details and Credit Score
Since it's a loan, your lender will request your bank details. Part of this is knowing the borrower's credit score.
But don't worry.
Car title loans in Arkansas are possible even with bad credit and poor payment history.
However, it's still a case-to-case basis depending on how bad your credit card debt and other liabilities are.
A quick tip: if you want to boost your bad credit, availing of a family car title loan can help improve your score since it reports to three large credit bureaus, namely,
- Transunion
- Equifax
- Experian
Proof of Residence
If you're applying for a title loan in Arkansas, you must be a resident of Arkansas. This is what the proof of residence is for.
Whether you live in the state's capital city, south-central region, or the outskirts, rest assured that you're qualified.
Some car title loans in Arkansas will ask to see a copy of your gross median monthly rent. These may be determining factors for your plans too.
Proof of Income or Employment
Auto title loan lenders want to be assured that you have the financial capacity to pay them back.
Even with your car set up as collateral, their priority is still the loan amount along with the additional interest rates. In other words, the money.
Some car title loans, Arkansas-based, accept applications even without proof of income or employment.
However, be wary that you may not get competitive interest rates or an ideal payment plan in this case.
But you don't have to worry too much. Whether you belong to the normal median income or government destitution line, you will likely receive pre-approval.
The difference lies in title loan interest rates, plan duration, or how much cash you can get.
Title Loan in Arkansas Step-by-Step
So now that we've discussed the required documents, let's list down the step-by-step procedures in applying for title loans.
- Apply: Go to a title loans shop and fill out an application form.
- Submit: Pass the essential documents (prepare them beforehand for your convenience).
- Wait: There will be a waiting period before your approval.
- Receive: Deposit or get the loan through the agreed or preferred means.
- Pay: Payback the loan in the prescribed duration.
Some lenders allow you to use the vehicle, but most title loan dealers in Arkansas will require you to surrender the vehicle until you're fully paid.
It's best to clarify these matters before you commit to the loan.
Online Title Loans Arkansas: Can I Apply Online?
One of our favorite advantages about title loans, Arkansas-based, is the convenience of online transactions.
You can easily fill out an application form ONLINE, submit all documents to the nearest lender facility, and get on with the process.
Pros and Cons of Title Loans in Arkansas
Title pawns and title loans are perfectly legal. There's nothing wrong with it, and there are undeniable benefits.
But we want this article to be fair and honest. There are also drawbacks to consider. Some financial situations may not be ideal for car title loans in Arkansas.
Arkansas Title Loan Benefits
Here are some of the pros that come with various title loan services:
- Affordable title loans are available.
- It's FASTER and MORE CONVENIENT than other cash options or a traditional bank loan (some have no minimum loan amount).
- You can get instant approval and direct deposit on the SAME business day.
- It's suitable for emergencies (i.e., school tuition, hospital fees, rent, etc.).
- ANYONE can get a title loan quickly.
- Even those with bad credit have chances to get car title loans.
Arkansas Title Loans Drawbacks
But as great as it sounds, Arkansas title loans come with cons too:
- There are a lot of hidden fees (interest and annual percentage rate can go out of hand).
- It can make the indebted plunge into a worse hole of bad debts.
Always remember that the reason why title loans have easy pre-approval and are "cheap" is that there's usually a catch.
Some people get enticed by many loans that they can receive within the same day without realizing the fees added to the car title loans.
By the time they think they're ready to pay, it's too late to realize that there are fees on top of fees.
A financially troubled individual or a person who has bad credit, to begin with, will have trouble paying for the loan in a short period (remember, car title loans are short-term loans).
We're not saying all services do this, but some lenders will prey on those with poor credit histories, knowing that they will end up surrendering their vehicles.
Important Considerations Before Getting a Car Title Loan in Arkansas
Trust us, we understand the need for same-day cash, especially during emergencies. But car title loans are not as simple as it seems.
Do You Have a Plan?
Before you apply, make sure that you have clear plans on how you'll pay back the loan. If you know you can't do it up front, ask for installment plans so you can deposit payments over time.
Are You Ready for Additional Fees on Top of the Title Loan?
Your car title loan is not the only amount that you will pay back.
You have to watch out for interest rates, financial fees, services fees, and other fees.
We suggest inquiring with your lender as you apply and determining what else your car title loan plan entails before you fully commit.
Are You Capable of Paying Diligently?
But at the end of the day, as long as the borrower consistently makes payments, you'll be fine. Most car title loan lenders are not evil and truly want to help.
It helps to be responsible and pay your debts as punctually as possible.
Are You Willing to Lose Your Vehicle?
One of the reasons you're applying for title loans is that you have financial dues to pay. We know. For some, this is the last resort.
But you must also understand that failure to meet the deadlines of a car title loan also means risking the ownership of your vehicle.
Other than the vehicle, expect to shell out huge amounts of money for extended due dates.
Who Should and Shouldn't Apply for a Car Title Loan?
Don't get us wrong. Almost anyone can apply for title loans.
But some people are encouraged, while some are discouraged from getting one.
Be reminded, though, that this isn't the rule. It's just a quick guide from us with your best interest in mind.
Get a Title Loan If You...
- Are eligible and well-qualified.
- Are financially ready to pay off the debt.
- Do not have other debts that could pile up.
- Have no other options for financial help.
- Fully aware of the implications and inclusions of your loan plan.
Don't Get a Loan if You...
- Know that you can't pay off the debt.
- Are not ready to give up your vehicle.
- Are not yet fully informed of your loan plans.
Title Loan Agencies in Arkansas: Lenders and Shops
If you have other trusted agencies, we suggest going for them. There's a different sense of security in knowing that your lender cares for your financial standing too.
Title Loans in Arkansas Summary [TL;DR]
That was a long read. For your quick reference, let's summarize everything under this TL;DR section!
Title Loans are a kind of loan where you set up your vehicle or car title as collateral.
You will be given a period to pay off the loan, but failure to do so means surrendering your vehicle and title to the lender.
Process in Getting a Loan in Arkansas
Arkansas title loans are easy to deal with. You can also apply online if that's more convenient for you.
In summary, the process entails these easy steps:
- Applying for a loan (whether in a physical agency or filling out application forms online)
- Submitting the documents alongside the application
- Getting approved and receiving the cash
- Paying off the loan
Documents Required
The necessary documents are as follows:
- Vehicle and legal title
- Government ID or driver's license
- Bank account details and credit score
- Proof of residence
- Proof of income
Different agencies may have varying requirements. It's best to comply with the specific rules for completion.
Pros and Cons of Applying for Title Loans
These loans are legitimate services, and they have already helped many people overcome financial troubles.
They're great for emergency needs that require you to shell out large amounts of money upfront.
However, behind the ease of processes are hidden and additional fees that may catch you off-guard if you're unaware. Be wary and always inquire clearly before committing to any loan.
Conclusion
We hope this article equipped you before applying for a car title loan. As much as we believe in the services, we want you to be careful.
But as long as you're responsible and diligent, we trust that you'll maximize these loans and put them to better use.
Good luck!