Title Loans in Texarkana, AR
The title loan is a convenient financial product that can come to the assistance of those who are struggling to make a large purchase or pay off bills. Those who have trouble getting a traditional loan can typically be approved for a title loan because credit requirements are much less stringent when it comes to Arkansas title loans.
Those title loans can be considered to be an “alternative lending project”, they differ from similar financial products like payday loans and cash advances because they involve presenting a vehicle as collateral.
The following is some important information you need to be aware of if you’re considering taking out a title loan:
How do Texarkana title loans work?
It’s very important that a consumer understands the details of title loans in Texarkana before deciding to take out this kind of loan. A title loan is a type of secured loan. An interested borrower can fill out an application online providing details about his or her vehicle. The vehicle will be held as collateral, so the value of the vehicle is a determining factor in deciding how much the applicant can borrower.
Once an application is submitted, it is evaluated by the lender. When a loan is offered to the applicant, details will include how much the prospective borrow can take out in the loan and how quickly the loan will be paid back. Also, the prospective borrower will of course want to know what the total interest charges will be, so this detail will be included.
The applicant can then evaluate the offer and decide if he or she wants to take out the loan in question. If the applicant decide to borrow the loan, he or she will need to submit his or her vehicle title to the lender. The vehicle itself remains in the borrower’s possession throughout the life of the loan, but the vehicle title must be handed over as security on the loan.
Arkansas regulations impacting title loans in Texarkana
Every state has its own laws dictating the terms of title loans. Title loans in Texarkana must adhere to certain Arkansas state regulations. Title loans in Arkansas are limited to a relatively small amount at $400. They must be paid back within 31 days, and the maximum interest rate that can be charged on title loans in the state is 17 percent. These somewhat strict state regulations limit the availability of title loans in Arkansas to a certain extent, but they also protect consumers from excessively high interest charges.
Benefits of car title loans for Arkansas residents
The following are five of the major benefits completely online title loans can offer to those who are in need of some short term financial assistance:
- The title loan doesn’t require a high credit score- Just about anyone with any score can be approved as long as he or she owns a vehicle.
- Title loans are flexible- The terms of title loans tend to be quite flexible and lenders will often be willing to work with borrowers to meet their particular needs.
- The borrower can continue to use his or her vehicle- Only the vehicle title needs to be submitted to the lender, but the consumer gets continued use of the vehicle.
- The borrower doesn’t necessarily need to be employed- While a typical loan often requires the borrower to be employed, a title loan doesn’t require this.
- Loan funds can be used as the borrower wishes- There is no restriction on how loan funds are spent.