It’s never a great feeling to feel like you’re out of cash… how are we supposed to pay our mortgages, utility expenses, and emergency bills until then?
This is where getting title loans proves to be useful and convenient.
If you own a CAR and are in need of some cash, then you’re in the right place. Learn more about how an AUTO TITLE LOAN works in the state of Michigan.
What Are Michigan Title Loans?
A title loan in Michigan is the same as what you can expect from a typical loan.
THE MAIN DIFFERENCE? The PROCEDURE. It’s in HOW you apply for a title loan IN Michigan!
You see, there are MANY OPTIONS available to Michigan residents when applying for a loan: one way is with traditional loans through tanks OR online loan options.
However, you would often need a decent credit score to be approved.
Luckily, the state of Michigan offers title loans.. you can transfer ownership as a GUARANTEE that you will repay your borrowed money, often with added interest rates.
What Is a Car Title Loan in Michigan?
An auto title loan refers to a SECURED short-term credit… with your CAR as collateral for your debt.
This loan entails the following deals:
- Submission of the TITLE of ownership. Submit this to the lender to ensure they have a disposable asset on their side.
- Use of the CAR during loan tenure. You are allowed to use the car as you normally would… the lender only KEEPS the title for themselves.
This is the most widely offered type of loan in the state of Michigan.
What Documents Do I Need to Prepare for a Michigan Car Title Loan?
First things first: do you own the car?
We’re asking you right now because you SHOULD own the car you are offering as collateral. And in Michigan, there should be NO existing loans against the vehicle’s title.
If that’s finally settled… then here are some paperwork that you should have completed by the time you apply for the title loans:
1. Original copy of the car’s title. This should show that you are in SOLE OWNERSHIP of the vehicle.
2. Government-issued identification card. This should show YOUR name matching that of the car title’s.
3. Proof of billing or utility bill. This should also match your name on the title to show that you ARE paying for the car’s bills and ownership.
4. Present vehicle registration. This should show that the vehicle is REGISTERED under your name.
It would also be better if you prepare these supplementary documents beforehand. These would help strengthen your position when applying for a loan:
- Proof of vehicle insurance (is it insured in the first place?)
- Proof of ability to pay the loan (are you still paying your student loans?)
- Character references (how can companies be sure that your provided information is reliable?)
- Duplicate car keys (are you determined to transfer your car’s ownership?)
Remember: the lender will have the right to REPOSSESS THE VEHICLE in case of a default payment.
But don’t worry! Having bad credit does not discount your application in any way… rather, these lenders would look at the VALUE OF YOUR VEHICLE’S CONDITION instead.
As long as you maintain the quality of your collateral, you’ll have a good chance at securing a car loan!
Finally have all of your documents in hand?…
How Do I Apply for a Title Loan In Michigan?
The process is easy!
There are essentially THREE STEPS you should keep in mind:
Step 1: Apply! Assess Your Collateral’s Value and Send In Your Form
Remember to bring ALL of the necessary documents with you!
This step should easily consist of the following procedure:
1. Head on over to your nearest loan store… bring your vehicle with you!
2. Have your car assessed for its value (this is why you need to bring your car with you… they will physically assess it).
3. Wait for the offered appraisal by the lender. Assess the offer shortly thereafter. Is it favorable to you?
4. Fill out the form should you agree with the terms and offers. Make the necessary counteroffers as you see fit.
Some companies have the option of APPLYING ONLINE. However, you’ll still most likely have to bring your collaterals for physical inspections BEFORE your form gets approved.
You will also be assessed based on your capability to repay the finances you wish to borrow.
Step 2: Sign! Wait for the Release of Your Funds as Specified in Your Signed Contract
You can actually get your money on the same day… of course, once your application has been APPROVED.
The procedure is fairly simple for the release (it’s just two steps!):
- Read and understand the contract. Make sure you agree with all of the terms. Discuss them with the lender beforehand to avoid any misunderstandings.
- Sign the contract. This is the formalization of your loan agreement.
Once finished, your funds should be released to you depending on your arrangement:
- Wired or cashed
- Immediate release or in installments
- Any other arrangement as agreed upon by the parties
You can then decide whether or not to bring your car back home! Again, this is all dependent on what you have agreed upon.
Step 3: Pay! Pay Back Your Borrowed Money
Borrowed money is still borrowed. Of course, you would have to pay it back eventually!
By signing on the rights to your collaterals, you should remember that a NON-PAYMENT of your loan would result in its acquisition.
Simply, pay back the borrowed money IF you don’t want to lose your collaterals.
Why Should You Get An Auto Title Loan?
Simple: it’s a CONVENIENT and QUICK way to get money.
However, you do run the risk of paying higher fees… think of it as additional expenses due to an existing INTEREST RATE.
As a more enticing argument for why you should get car title loans, you could always prioritize AFFORDABLE ones as an alternative!
The Benefits of Getting an AFFORDABLE Title Loan in Michigan
Affordable title loans refer to loans with lower repayment rates… they are more affordable for the future you in this sense.
Some benefits of purchasing such loans are the following:
- Good credit is NOT ALWAYS a requirement. Remember, this is why you put your car as collateral in the first place… it’s a guarantee that you’ll pay your loans eventually.
- There are FEWER LIMITATIONS to your car’s quality. As the loaned money lessens, so does the collateral’s quality. This is a simple analogy of high risk, high reward.
- Some companies offer benefits in the form of VOUCHERS. Think gift cards to local stores!
- While some companies offer benefits in the form of REFERRAL BONUSES. It’s always a great idea to gauge reviews about companies from people you personally know. You might even get discounts for your loan repayments.
Use Your Funds for a Variety Of Reasons
Lenders rarely discriminate over the REASON for your need for funding.
You may freely apply for a loan for any of these reasons:
1. Rent or Mortgage
2. Home Improvements
3. Medical Expenses
4. Car Repair and Maintenance
5. Utility Expenses
6. Emergency Travel
7. Legal or Attorney Fees
8. Funeral Expenses
Just make sure to submit ALL of your requirements. You’ll surely have a high chance of getting your desired loan amount!
How Will My Credit Affect My Chances of Getting Approved?
We’ve said it, and we’ll say it again: your credit score is NOT the main requirement for your eligibility.
The purpose of applying for title loans is you are giving something up as collateral… this is IN PLACE of your ability to repay according to your bank credit.
Think of it this way: your lender can easily get HOLD of your collateral’s physical assets in case you cannot repay the loan proceeds back.
Rather than credit, lenders usually look for these FACTORS when borrowers state their loan terms:
1. The Vehicle’s Value. The loan amount depends on whether or not your car is in a GOOD CONDITION or not. Loaners usually overlook its mileage, condition, and age… as long as you have PAID FOR THESE CARS ALREADY.
2. Amount of Income. This is proof that verifies your ABILITY to repay what you borrowed with interest rates.
The role that credit plays is in the interest rate. A lower credit rating would mean higher interest.
Similarly, a borrower does NOT need to be employed to show their ability to repay their loans. Retirees, unemployed, and self-employed borrowers can show the following documents as proofs instead:
- Social Security Checks
- Disability Checks
- Recent Tax Forms
What Happens If I Default On A Title Loan?
Defaulting refers to the INABILITY to make the monthly payments on time.
In the case of car title loans, lenders may REPOSSESS the vehicle… this fully authorizes the formal possession of a lender following the acquisition of the vehicle title.
This is the process that will happen once you start DEFAULTING:
- A borrower cannot continue making loan payments
- The repossessed vehicle will be sold
- Cash will be used by the lender to cover the remaining balance
Unfortunate, isn’t it? You should however already be aware of such risks the moment you sign your contract.
If this worries you, your loan companies in Michigan might SUGGEST the following as a solution to keep your title loan:
1. Refinance the Loans. Such negotiations could REDUCE the size of your monthly payments and interest rates.
2. Stay In Contact. Auto title loans in Michigan can be freely discussed with your agent. Arrangements can especially depend on the companies themselves.
Needless to say, all agents will do their best to accommodate your needs.
So… How Can I Get My Car Title Back If I Default?
You can still get your car title back! But only AFTER the full amount has been repaid.
Once you’ve talked with your team of agents and settled existing defaulting problems, here’s how the process will work:
#1 Communicate and Negotiate
Speak with your agents first.
Your agent will walk you through the title recovery process comprehensively.
Make sure you HAVE settled your repayments before then!
#2 Recovering the Auto’s Ownership
There are THREE common recovery processes to get your title back in Michigan:
- LIEN RELEASE. This is a formal document that should show the ownership of the car title belonging to JUST ONE PERSON.
- ELECTRONIC RELEASE. An electronic title can also be released electronically. These titles depend on the state, but this option is widely used in Michigan.
- OFFICIAL LETTER. The last option is to have the title loans specify the transfer of ownership through an official letter. This should include pertinent information AND repayment details.
#3 Final Processing… And Release!
This process usually involves a visit to the DMV.
And in the state of Michigan, the transfer of auto title loans ownership is EASY. The final processing would just have you PRESENT your documents and PAY for any fees involved.
This transfer amount now depends on the lending companies.
Some documents that will be asked for include the following:
- A Government Issued Photo ID
- A Completed Ownership Transfer Form (from Step 2)
- The Title Transfer Fee
- A Document Receipt of Title Loan Repayment
An optional document is proof of your car’s insurance.
Your lender will now leave its duty as a lien holder, and you’ll have full ownership of your vehicle again. Just make sure to have all of your FORMS SIGNED, your FEES PAID, and ALL PARTIES AGREEING.
How Do I Get Title Loans in Michigan?
This is the general process you’ll go through when securing your title loans in Michigan:
- Lenders will check the condition of your vehicle
- You will agree on the terms of your car title loans
- The lender will keep the TITLE… and you will keep the CAR
- Your funds will be released on the same day
- Repay the amount borrowed within the repayment period
Remember: the title secured borrowing limit is usually computed at 25% to 50% of your vehicle’s cash value.
How Much Do Michigan Auto Title Loans Offer?
You can receive loans from anywhere between $300 to $5,000.
This will depend on three factors:
- Your needs
- Your car’s value, and
- Your ability to repay the loans
How Long Is a Loan Period?
A period is usually 30 days. Make sure to settle your payments within this time period.
What Is an Online Title Loan?
Simply, this is a type of title loan that is facilitated through ONLINE APPLICATIONS.
This is normally EASIER if you have an existing bank account AND a credible credit history… of course, all because these are quick indicators for your ability to repay the amount borrowed.
Car title loans that require COLLATERALS might still have you proceed to visit the company for processing afterward.
How Can I Repay My Car Title Loans?
Your loan company would usually offer a variety of payment options:
- By mail
- By cash payment on-site
- Online by credit/debit card
- Through wired money
This should make repayments easier! Just remember that terms VARY on a case-to-case basis.
Depending on your arrangement, you can choose to make your payments EARLY… just not later than any of your deadlines.
Are There Any Hidden Fees?
No, there are usually no hidden fees! But go over your terms just to be sure, and please read the FINE PRINT.
Apply for Title Loans at Michigan Right Now!
You don’t have to be afraid of any creditors when faced with the NEED for emergency cash and money.
Loan application is EASY if what you’re after are title loans! And not only does the state of Michigan make this EASIER… it also makes the process more APPEALING.
Specifically putting CARS (or anything of value) out as collaterals are one solution for you to receive fast cash.
Despite the added interest rate, the benefits from a title loans in Michigan could definitely ALLEVIATE any problems that you may be having right now.
Trust us… it’s worth it in Michigan.
Have you tried any of these methods to pay your utility expenses? Let us know in the comments section if the process is any different from Michigan!