We all know that loans can be pretty dangerous, especially loans that offer short repayment terms, high-interest rates, and other unrealistic conditions for the borrower. Most people already know that getting a payday loan from a money shark can lead to more debt and more trouble with collectors. But, there is an even more dangerous alternative — a title loan.
In most case scenarios, you get the same short-term conditions, high interests, and a whole world of double putting you in even more debt. Worse than that, a title loan presupposes some collateral, so if you do not pay back on time, you may lose your property — whatever it is you put at stake — a car, a phone, a house, etc.
What Is A Car Title Loan?
Most often, however, it's the car money-lending sharks ask for as the collateral. That why title loans are also called car loans, for simplicity's sake. The difference is that you do not get credit from a bank so that you could buy a brand-new auto. With a car title loan, you borrow some cash and pawn your car as a warranty that the lender will get his money back. Yes, 'pawn' is the right word because the whole logic behind title credits is not at all different from a pawn shop.
At the same time, you should not forget that a loan is still a loan, which means that a certain amount of interest is involved. And, car title loans have very high interests — up to 300 percent. More importantly, you are supposed to repay the full amount in a single payment — the entire sum you borrowed plus the interest rate. And, people usually have no more than a couple of weeks to repay this debt.
If a person cannot, for whatever reason, repay the whole sum in due time, they can get a rollover from title loans companies. It means that the time frame to repay the money is extended, but creditors get an additional round of interests. So, in a couple more weeks, borrowers are supposed to, once again, make a full repayment — the sum borrowed plus the dual interest.
It's not that difficult to see a vicious circle in that. That is exactly why both title loans and payday loans (the same payment logic but no collateral) are claimed as predatory lending practices and even prohibited in many states. The only fact that around 80% of borrowers rollover is alarming enough. So, do not rush googling for the title loans near me offices or stuff like this — read a couple of other things first.
How do Title Loans Work: Some Simple Math Behind
Both online title loans and classical, onsite ones are an option. Whenever people apply, they are supposed to offer some collateral — usually, it's a car. After property assessment, people can borrow somewhere between 25 and 50 percent of the car value. The repayment period may differ, but as a rule, it's pretty short — from two weeks to a month. Once again, when this period passes, people are supposed to repay the sum in full, with interest on top. With more or less minor credits, the amount of interest may not seem high at first. For example, if you borrow $500, you will need to return up too $650 in a month. Still, if you pause to think of it, you'll clearly see that the amount of interest is almost a third from the borrowed sum. And that's a lot!
What Happens When People Miss a Payment on a Title Loan?
If people cannot repay the sum in due time, they are offered an extension, aka rollover. Here, the logic can be different. For example, a lender can ask you to repay the interest and not the actual sum you borrowed. After that, you get a couple more weeks (up to a month) to repay the sum with the new, identical round of interest. Or, people can use the extension to pay the whole sum plus a double amount of interest. Whatever the case, the debt is doubled — one way or another. And it really does not matter whether you get title loans online or onsite.
Should you prove incapable of repaying, the lender will be in his full right to repossess the car or any other property you pawned. Well, that does not seem too fair, right?
Are Title Loans Even Legal?
After reading all the above, you may wonder how legal it is to use such a predatory crediting system. Well, even though plenty of states in the US have banned title loans and many more are trying to educate people about the dangers of such credits, you cannot forget the free will part. After all, it's your property, your money, and your life. So technically, you are free to do whatever you want with all of them. There are plenty of things you can offer as collateral. For example, motorcycle title loans are also an option, and not every state will have the legal jurisdiction to tell people what to do with their property.
Getting Realistic Title Loans Is Easy With SpeedyLoan
On the other hand, no one can deny the simple fact that sometimes people need cash — and they need it quickly. Getting credit from a bank is not always an option because some US citizens have bad or no credit scores at all. This, once again, means that their loan applications are rejected. Or, the bank would impose incredibly high interest rates that are not much different from predatory money-lenders' offers.
Fortunately, there is always a solution, and SpeedyLoan is ready to offer you even more than one! We work with minimal paperwork, do not care a lot about our clients' past credit history, and are always ready to offer a helping hand to those who need it. We understand perfectly well that most Americans do not have any savings in their bank accounts, but none of us is safe from all sorts of cash emergencies. That is why we offer a whole range of credits, from carefully calculated personal ones to auto title loans that do not rip you off. We offer realistic repayment options and reasonable interest rates to anyone who needs cash quickly.
About Title Loan Approval Requirements at SpeedyLoan
To apply for our best title loans without rip-off interests and overly short timeframes, you do not need anything special. The peculiarities may differ from state to state, but if your state allows this type of credit, we will not ask anything extraordinary from you. All it takes is to fill in some paperwork with your name, legal address, and auto credentials.
The vehicle, at the same time, stays with you until you repay the debt — and, unlike most predatory companies, we do not ask for quick repayment or excessive interests. In fact, you can even choose a plan where you'll be repaying the sum in several payments, which is easier and more pocket-wise than repaying a sum in its entirety.
The whole procedure is as simple as ABC:
- You apply for a loan online. It only takes a couple of minutes to fill in all necessary forms.
- You get approved by our managers. This may take up to 24 hours, but most often — sooner than that.
- You get the money to your bank account. That happens within 30 minutes after your loan approval — so no store visit or cumbersome paperwork for you!
Reasons To Get A Title Loan With Us
- No credit check. We understand that not everyone has a good credit history, but are still willing to give people in need a chance. None of our managers will be calling your bank or meddling with things that do not concern us — it's all very private and confidential.
- No lengthy contracts or pages of paperwork. Getting approved for a SpeedyLoan credit takes less than a day, and you do not need to go anywhere. As long as you're 18+, have a bank account, and own a car, you can get a loan from us.
- No lengthy contracts or pages of paperwork. Getting approved for a SpeedyLoan credit takes less than a day, and you do not need to go anywhere. As long as you're 18+, have a bank account, and own a car, you can get a loan from us.
- No pawning your car or other property. Your property remains with you as we are no pawnshop and understand perfectly well that you need it 24/7.
- No phone calls or reselling your debt. Unlike some unsavory companies, we do not resell your debt to collectors, so you will never get any annoying calls from predators. We're working with relatively small sums and offer flexible payment terms, making sure each of our borrowers can repay the sum itself and the minimal amount of interest we charge for our services.
