Most of us know there are limited options for those who need emergency cash in Texas. It gets even worse if you have bad credit or a spotty payment history with your bank or credit union. One way to get money is to use your vehicle as collateral for a loan. Here in Texas there are many lenders that will work with you, even if you have bad credit. But you need to know what’s required when you submit an application. It’s also important to know how a title loan works. Read on for answers to some of the most common questions we come across regarding title loan offers in Texas.
Can I refinance my title loan in order to reduce my interest rate and monthly payment?
You may or may not be able to refinance your loan depending on your credit score and history. It is calculated according to a formula developed by the credit bureaus and ensures that you are not penalized for late payments. It provides you an excellent opportunity to make your credit score increase. Make sure before you make any decisions; approach the company in an objective, professional manner. Even with bad credit you can still get a title loan, but you absolutely need to provide the vehicle’s pink slip. In some cases you may want ask how it’s possible to get a title loan with a bill of sale, but you will often always need the actual vehicle title.
Do I have to pay a fee to the lender in order to get a title loan?
A fee is not necessarily required or allowed in Texas when you first apply. It should not be required before you obtain a loan. If the loan is for less than $5,000, you are not required to pay a fee. However, if the loan is more than $5,000, all lenders will charge you a fee unless you negotiate with them. In order to save on the amount of money you pay in fees, talk with the lender.
Is the title loan secured by my vehicle?
Car title loans are referred to as title loans because the loan is secured against your car. This is also known as a secured loan. This means that how the money is to be paid back.
How can I get a low interest rate on my title loan in Texas?
An experienced, qualified lender will be able to appreciate the value of things that you have to offer. Low interest rates on Texas title loans are mainly due to the low risk. Lenders have less to worry with bad credit, long term employment, time at residence, and bank deposits. Some companies will even allow a prepayment of the full amount with no fee. That’s why you need to make sure your title loan company will not charge a prepayment penalty for early payoff.
How can I get the money faster?
As mentioned earlier, you are able to or should be able to get a credit check from the bank where you secure your home mortgage loan. Another lender that you have on your credit, such as an auto title loan lender, will likely give you the money faster. This can be more effective when you’re looking at a smaller amount and wishing to set it up to make installment payments. This is particularly beneficial if you need the money right away, such as for tax preparation.
What happens to the title of my vehicle after I make loan payments on a title loan?
Like mortgage loan payments, you must make at least the installment payments on your title loans on time. In order to keep your free and clear title, you should never miss a payment. If you do you will be in default which could end up in the repossession of your vehicle. If this happens, you will have a difficult time getting to the original or wholesale value of your vehicle. When you are considering a car title loan, you will want to take your time and perform your due diligence. The end result could be one of the best decisions that you will ever make.