Many people struggle with short-term needs and find that the lending market is full of long-term products. A simple shortfall of money for monthly bills, or a one-time emergency expense, doesn’t call for a high-ticket, five-year loan repayment process at a major financial institution. That’s where title loans come in. When it comes to title loans Coppell residents should keep in mind that these short-term loans are the perfect way to cover a momentary financial hardship. They’re also easy to apply for and offer a lending decision in mere minutes.
While title loans have been around for quite some time, they’re not fully understood by many potential borrowers. Unlike traditional bank loans, which are based almost entirely on traditional measurements of creditworthiness like FICO credit scores, Dallas title loans base their approval and value of the car than applicant owns. The loans get their name from the title that declares the applicant the legal owner of their vehicle. This is important: In order to be considered for a title loan, the borrower must own their vehicle outright and be free of outstanding liens.
With a fully owned vehicle, borrowers simply fill in a few key details about the year, make, and model of the car that they’ll be using as collateral for the loan. The maximum amount of the loan offered to each borrower is based on the full resale value of the car, making it easy to both grant approval and to originate a loan that fulfills the borrower’s short-term needs.
Applying for a title loan is relatively easy. First, the fully online application will ask for some basic contact details. Borrowers should be ready to provide the following personal information:
Full mailing address
In addition to contact information, borrowers should have a few key details about their car on hand. Keeping in mind that loans are granted based on the value of the car a borrower owns, the following details will be required:
When all of this information has been entered and submitted, an instant title loan estimate will be generated. A loan representative will quickly get in touch with the borrower to verify key details about their vehicle and make a final determination as to the amount and approval of the title loan. The funds will often be disbursed that same day, and appear in the borrower’s bank account in as little as one business day.
Texas passed two key regulations in 2011 that should be of concern to title loan borrowers. First, state financial regulations require that a written agreement be established between the borrower and the lender that clearly outlines the amount, repayment terms, and effective interest rate of the loan. Secondly, state regulations require that a title loan company maintains an active license with the state. An unlicensed company is not allowed to offer title loans in Texas.
Title loans provide an important service, filling the gap that exists between short-term financial needs and long-term lending products that can be hard to qualify for. With a title loan, borrowers are dealing with a fully licensed Texas lender. Approval is based on a vehicle’s value, offers a short-term loan that can be repaid quickly, and provides crucial peace of mind during an otherwise stressful financial hardship.