In a financial bind, those you may think about turning to a car title loan for a quick infusion of cash. As the name suggests, you can take out a car title loan to borrow money by using your vehicle as collateral. Typically with these loans, your application is quickly processed and there’s no credit check. Keep reading to learn about the types of title loans in New Mexico and many other states.
While the maximum amount you can borrow will vary, it’s usually no more than 50% of the car’s total value. In order to qualify for a car title loan, you must be the owner of the vehicle and must be willing to temporarily surrender the vehicle title in exchange for the loan. After assessing the car’s value via an inspection, you will sign a small amount of paperwork before you receive your money.
Most car title loans can be transferred in 15 minutes or less on as little as $100. Other financial institutions will probably not loan under $1,000 if you have no credit or poor credit as they will see you as risky and not profitable. In addition to verifying the car’s value as collateral, many car title loan lenders will need proof of employment or verification that you have regular income.
It’s important to keep in mind that title loans are not cheap. They tend to have higher interest rates than credit cards and banks. Despite the secured nature of the loan, most lenders argue that the high interest rates are necessary to protect themselves since they are lending money without first conducting a credit check, and there’s a greater chance that you will default on the loan if you are already experiencing financial difficulties. Still, despite the comparatively high rates, borrowers who find themselves in emergency financial situations may find car title loans to be their best bet until their next paycheck arrives.
Cash Advance Loans
Cash advance loans are a short-term funding option perfect for dealing with financial emergencies where credit isn’t taken. People who have a line of credit with a company can borrow money. Just like if someone was buying items in a store, people are making a purchase with this line of credit. Instead of groceries or clothes, a person is taking out cash.
Different credit card companies have different rates and policies regarding cash advance loans. Some companies have the interest rate the same as if someone was using a card in a store. Other companies have higher interest rates linked to cash. Additionally, there are lenders who have fees linked to when cash is taken out on a line of credit. It’s always important to read the fine print.
Some people open credit cards just to get a cash advance loan. There are companies and cards focused on this type of lending. If a person has an existing line of credit, withdrawing money is probably possible just by making a quick call. This is a quick way to get cash without applying for loans and waiting days for an answer. A preexisting relationship with a credit card company makes this incredibly easy. Some people need only to walk up to an ATM, put on their card, and input their code.
Repayment policies vary by lender. Some groups have people repay the advance loan like any other purchase on the credit card. Other companies have people pay the cash advance separately from the rest of the credit balance. Lastly, there could be policies that say that the cash advance balance cannot be paid until the rest of the balance is paid down. Consumers should always ask about the companies’ policies before taking out money.
Consumers should know that unsecured loans like cash advances come with higher interest rates than traditional loans because the money is transferred quicker. Cash advance loans are perfect for people who need cash fast.
Types of Cash Advance Loan
Below are a few different types of cash advance loans:
There different types of cash advance loan but I will like to lay emphasis on the most common ones among them. Below are few ones that I will like to talk about:
Credit Card Cash Advances
Credit card cash advances as far as I am concerned is the most popular type of cash advances, it is must famous than any other type. It works principle based on borrowing on a line of credit through a credit card. You can withdraw cash at any ATM or on counter depending on the operating system of the credit card company. The hidden truth about this type is that it typically carry high-interest rate, higher than the normal rate on regular purchases. For instance, the average you will pay can be as high as 23.53% which about 8.54% higher than the average APR for purchases. Unlike other loans that can offer you a grace period, the interest of credit card cash advances begins to increase immediately.
Fees are usually attached to it, it could be a flat rate or percentage of the amount requested in advanced. Additional charges may also be included if you use an ATM to access the cash.
Credit card advances carry a balance from credit purchases as well as separate interest rates but your monthly due can be applicable to both credit purchases and interest rate. You can settle to pay only the minimum amount due but this will only go to the balance that carries the lower interest rate which obviously will be the rate for purchase. In this case, your cash advance balance will continue to increase for months.
Credit card cash advances will offer you quick and easy money but the interest rate is extremely high.
Merchant Cash Advances
Merchant cash advances refer to loan obtain from lending companies or banks. This type of loan is good for business people with less than perfect credit. This type of loan can be referred to as purchases of future credit card sales as the advances may be paid for with future credit card receipts or with funds received from transactions in an online account. Money received from an online account such as Payoneer and PayPal can play the role of business credit scores in this type of loan. This type of loan is completely different from a traditional bank loan as it is characterized by short payment terms which opposed the longer payment terms and larger monthly payment offered by traditional bank loans.
The word cash advance is synonymous with payday loans and both are used interwoven. This type of loan is issued by special payday lenders. It is a relatively small amount of money lent at a high rate of interest with the agreement that it will be repaid within the shortest period of time usually the borrower’s next payday. The amount of the loan is usually based on the regulation of the local state, the income of the borrower or his paycheck. Although it comes with fees which could be as high as $15 per $100 it is easy to acquire. Once the loan is approved, there is no any hassle, the lender will offer the borrower immediate cash and if the application is online, the lender will transfer the money into the borrower’s provided checking or savings account.
There is always room for an extension of payment time but this usually comes with additional interest and often time extension only last for 30 days from the previous payment date.
The process can be faster than any other type of loan, you just need to write a postdated check of the amount you want to borrow along with the lender charges and the lender will offer you the cash and cash the check on your payday. Some of the lenders have advanced to the extent that they can make you sign an agreement of automatic repayment from your bank accounts. Proof of income and means of identification will be requested during the loan process since no collateral is involved.
Important Notice about Cash Advances
As is the case with any loan, you must examine your finances to determine the best route for you. While learning to budget is ideal, it doesn’t help to hear it when the rent is due and your car suddenly won’t start. Cash advance loans should only be used in extreme emergencies, and while it’s probably not in your best interest to rely on them regularly, they can come in extremely handy if you find yourself facing a serious cash crisis.
Also, it’s important to note that most credit card issuers won’t allow you to take out the entire amount of your credit limit in a cash advance loan. For most people, cash advances are maxed out at a few hundred dollars. While you can’t rely on your credit card to provide you with thousands of dollars in emergencies. Obviously, there may be a need for another alternative that can offer you sufficient money to cover any kind of emergency should the need arise and that’s where title loan stand.
What Is Car Title Loan?
Car title loan is a perfect loan that fit an emergency need of cash. This type of loan permits you to borrow money against the title of your vehicle. It may not be able to cater to all you need but you can get amount sufficient enough to cater for your emergency need, depending on the value of your car and its equity.
How Does Car Title Loan Work?
The working principle of car title loans is simple; it requires that you borrow money against the resale value of your car. The title of your car will stand as the collateral security for the loan. A lien will be placed on the title of your car during the loan period but will be removed and returned to you immediately after the completion of the repayment. The entire process is easy with the Auto Money 4-step process!
Apply Our App
This is the initial stage of the process, it requires that you fill and submit a simple online application which entails your basic contact information and the car details such as manufacturing year, model, manufacturer, and mileage. This detail will give an insight into how much you can get with your car.
Immediately you submit an online application, a loan agent will be dedicated to you to determine how much you qualify for; taking into consideration the resale value of your car. This is done within couples on minutes usually 15 min or less.
Bring all necessary documents along with your vehicle to our office
Your check or cash will be available the same day without any delay.
Requirement for Car Title Loan
Requirements to apply for car title loan are as easy as anything you can think of with TFC Title Loans. You do not need to waste time searching for bank statements, once you are 18 years and above and you have a few documents listed below; you are qualified to apply for a car title loan.
Your vehicle is one of the most important requirements; the vehicle along with its equity will be assessed by our expert staff to determine how much you qualified for. The resale value of your car will determine how much you can get from us. However, you won’t need to park your car with us. Once we’ve determined the amount you qualify for, you can drive away your car.
The car must be registered in your name, and the title must indicate that the car is registered in the city where you are applying for the loan. The car must be paid off and without liens on it.
You must come with a valid government-issued identity card; driver’s license and passport are perfect examples.
Your address will be required in the process as this will prove that you are a resident of the location. A perfect example to back up your address is the utility bills contain your address. Electric bills and cable bills are a perfect example.
Proof of Auto Insurance
Since car title loan permitted you to drive your car during the loan period, we need to be sure that the vehicle you are using as collateral is insured. This will limit our risk, should anything happen to the car during the loan period.
Proof of Income
We don’t just lend you money to put you in another difficult situation so, this document is important as it helps us to schedule a repayment plan that will suit your source of income. It is majorly needed for your own comfort.
Why Should You Consider Our Title Loan In Your Emergency Need Of Cash?
Few steps and you already have the cash in your hand! Our application is easy; you can apply online or walk into any of our offices near you. You can always contact us on the phone for any help regarding your application.
We know you need fast cash to aid your planning and that’s what we do when you choose us as your loan lender. We offer you fast money as long as you meet our requirements. You can get the money you need without any hassle the same day you applied for the loan.
Great Customer Service
Even while we are offering you helping hands, we still do it with courtesy. Our staffs are well trained to attend to your need without keeping you waiting, once you have all the required documents as mentioned above, you can access our car title loan without any stress. We are always discreet about any information you submit to us and we treat them as confidential as we can. We will tell you all you need to know about the loan and ensure that you understand all prior to the signing of the loan contract. We are always available on phone1-844-242-3543 should you need any help.
Most of our competitors try as much as possible to be on a safer side so they will offer you 30 to 50% of your car resale value but, we are distinct, we take a high financial risk to satisfy our customers. We will offer you up to 85% of your car value and you can get up to $50,000 depending on the value of your car.
Keep and Drive Your Vehicle
You need your vehicle for your comfort on a daily basis. So, when you get a pink slip loan from us, you keep your car while you owe the loan to us. We put you first and that is why we designed our title loan to offer you money without causing any havoc to your lifestyle.
Our title loan is cheaper when compared to other types of loan especially loans from payday, banks, and cash advances. This can be attributed to our low-interest rates. We offer you low interest because it’s a secured loan as your vehicle serves as the security for the loan.
No Hidden Fees, No Prepayment Penalties
We ensure that you understand all the details in our drafted loan deal including the amount payable, capital, interest, and repayment break down before you sign the loan deal, there are no hidden fees apart from the one you sign in the loan deal.
Use Different Cars to Access car title Loan
When you need huge urgent cash that a car resale value cannot be enough to get you, you can use different cars to serve as the collateral. However, it is important for you to be sure that you will be able to repay the loan as default may result in losing your cars.
No Credit Checks
Unlike banks and other conventional loans that regarded credit check as a top priority, TFC Title Loans do not need your credit reports, we may check but it doesn’t disqualify you for a loan. Car title loans are obtained using your vehicle title as collateral, so without your credit scores, we still feel relax and have full confidence in you that you will make your payment on time.
Pay On Time, Pay Less
We do all we can to ensure our customers’ satisfaction, we offer a long period as long as 24 to 48 months for repayment and also schedule a repayment plan in accordance with our customer source of income. But vast majorities of our customer repay their loan on time and pay less interest. We told them the amount to pay and when to pay. We offer loan renewal for our clients who are unable to pay at the right time. This permits them to pay only the interest and renew the capital into a fresh loan.