Frequently Asked Questions About Texas Title Loans
Common Questions and Answers About Title Loans in Texas
Is a Title Loan the same as a Title Pawn?
No. In the State of Texas, there is a difference between a car title loan and an auto pawn. The main difference is that if you get an online title pawn, the company giving you the money has the option to keep your vehicle. The lender can keep it at their location until the money is paid back in full. Some people choose a title pawn because their vehicle is too old to be worth the amount of money they need at that moment.
Is a Payday Loan the same as a secured vehicle loan? Other the fact that this type of financing uses a vehicle as collateral?
Not exactly. Actually, people with a regular income of any kind can qualify for an instant title loan in Texas. This includes those with social security disability, worker’s compensation payments, or unemployment benefits. In most cases, these applicants would not qualify for an installment loan, cash advance, or payday loan. Besides, a Payday loan has a maximum limit – typically around $500 to $2.000 in Texas as of 2021. An auto title loan is based on the amount that your vehicle is worth and can be significantly more. Payday loan contracts are written so that you have to pay the entire amount back the next time you get paid. If you fail to pay the contract off in full, there are additional fees and interest rates added on until you are in a trap and cannot pay it back. Car title loans have specific payment plans with a set interest rate that is mentioned in your contract.
What is required to get approved for financing in Texas?
In the State of Texas, you must be at least 18 years of age.
The vehicle must be paid in full and the title must be free of any liens.
The title must be in your name and only your name.
You must have a current government ID such as a driver’s license.
What if I already have a title loan from another company? Can I still get a loan from you?
Yes, there’s a chance that you can get a loan from a registered lender. Some companies featured on this site will refinance these loans. A lot will depend on how much your car is worth minus how much you owe on the outstanding loan with the other company. If the other loan is more than halfway paid off, the chances of making it work look reasonable. You also need to check and see what the current laws are in Texas regarding multiple title loans at any given time. Ther regulations are always changing, so it’s important to know if you’re even allowed to have more than title loan outstanding.
Can I qualify if I have bad credit?
As a general rule of thumb, yes. We realize that the downturn in the economy during the last decade ruined credit for a lot of people who paid their bills until they lost their job. With the slow recovery, many have yet to be able to improve their credit reputation. The fact is that we don’t base approval for a pink slip loan on your credit score. That means the likelihood of you qualify for funding is much higher than you may think. Keep in mind, it still makes sense to improve your credit score. Customers with credit difficulties will always be eligible for better finance rates and terms. Check out the terms on bank and installment loans to see what your APR would be with good to excellent credit.
Can I get a Car Title Loan if I have no bank account?
You sure can. Because this is a secured loan, you can still qualify whether you have a bank account or not. As long as you can make the payments on time, you can use a prepaid debit card or a money order to make the payment. Most Texas title lenders want to know if you can pay back the loan or not. It’s also important to have enough equity in your vehicle to cover the amount owed in case of repossession.
Is there a Prepayment Penalty?
No. We’re happy when our customers get their finances straightened out before the final payment is due for an online title loan. It gives us a sense of pride when we helped someone in need.
When do I get my vehicle’s pink slip returned to me?
Once you make the last payment, your title will be processed as clear of the secured loan and returned to you within 10 business days. We want to ensure that you get back a lien free title before returning it.