Title Loans in Littlefield, Texas
Title loans are one of the most effective forms of debt financing in Littlefield. In a title loan, you transfer the ownership of your asset to a lender in exchange for a loan. The lenders keeps the asset as collateral until you repay the loan in full. Many people prefer to use the title of their cars as collateral. In this case, the lender takes custody of the title until you repay the loan. If you default in your payments, then the lender has the right to repossess the car and sell it to recover the loan.
Unlike traditional loans, Lubbock car title loans have incredibly short repayment periods. The period usually does not exceed 30 days, regardless how much you borrow. However, the lender may choose to extend the period if you give a genuine reason why you need an extension.
The amount you can get from a car title loan usually does not exceed 25 percent of the total value of the car. For example, if the total value of your car is $15,000, then it means you can get a maximum of $3,750. In addition, title loans Littlefield take minutes to hours to mature, making them a perfect alternative for financial emergencies.
How to Apply for Littlefield Title Loans
There are two ways to apply for title loans Littlefield. You can either apply online or walk to the lending company’s offices. Applying online is far much convenient and time-saving than going to the lender’s offices. Just like other online flex loans, you will have to fill out an application form with your personal information as well as the details about the vehicle you are providing as collateral. For example, you may be required to indicate the make, model, year of manufacture and the mileage of the vehicle and provide personal information such as mobile number, full names, home address and zip code. Once you fill out and submit the form, you will be provided with a title loan estimate. The lender will also send one of their agents to your residence to inspect the vehicle.
Legal Regulations Governing Littlefield Title Loans
All the rules governing title loans Littlefield come from the State of Texas. These laws also cover title loans in Littlefield and other regions in Texas. According to the rules, lenders must provide full disclosure regarding loan fees and interest rates. All title loan lenders must have an operating license indicating that they have met all the state requirements regarding operation and management of title loan business. You should check with the state to see if a lender is licensed before you agree to any terms. These rules also provide you with an opportunity to know the true cost of the loan.
The law also requires lenders to be the actual owners of the vehicle provided as collateral. They must also be 18 years old and above and show proof of residency in Texas.
Benefits of Title Loans
One major advantage of title loans is that they are very quick and convenient. Once you submit the application form, you can get the cash within the same day. Title loans do not consider your credit history when determining qualifications, meaning you can a loan even with a bad credit report. The collateral is based on your vehicle, so it becomes much easier to secure even if you have a bad credit report. Another advantage is that you can still use your car the way you like while repaying the loan. The lender only takes possession of the title, not the car. Not to mention, you can use any vehicle as collateral.