A title loan can be an easy and convenient way to cover some unexpected situations for which you need cash fast. All you really need to get one is a paid-for vehicle in your name, the vehicle’s title, and the means for loan repayment. How do you get a title loan in Houston? Read on for that and more.
Vehicle Title Loans
These are short-term loans that usually come due in 30 days or less, although longer terms may be available.
To get such a loan, you’ll need to put your vehicle – car, truck, boat, RV, or motorcycle – up as collateral, meaning you could lose it if you fail to make timely payments. So, be clear about possible consequences before signing on.
On the other hand, because the loans are secured, approval rates are relatively high. You also get to keep your vehicle during the loan repayment period, which is a major advantage over pawn loans. All that’s required is for you to relinquish your vehicle’s title to the title loan company until the loan is paid off, plus interest.
How Much Can I Get?
That depends on state regulations and your income – the higher it is, the better – and the vehicle you wish to collateralize.
You can expect to receive between 25% and 50% of your vehicle’s value, which is based on its age, make, model, age, and overall condition. The vehicle’s style, trim level, and any modifications may also be factored in.
In general, loan amounts can vary widely, from $100 to $10,000 or more. The average loan is about $1,000.
What is Required for a Loan?
In addition to a vehicle and clean title, you’ll need to prove you can afford to make the payments. If you have a job, you must submit pay stubs or bank statements. If you don’t but you have an alternative form of income – from disability payments, a rental property, self-employment, Worker’s Compensation, Social Security, or a pension or retirement plan – that would work as well.
For car title loans in Houston, you’ll need to be at least 18 and possess a Texas-issued photo ID and proof of residence in the form of utility bills, etc.
So that lenders can determine your vehicle’s value, you’ll also need to submit good photos, including the vehicle’s hood, rear, front, and sides. Shots of the odometer and vehicle information number are also required.
What’s not required is good credit, which is why such loans are a good option for those ineligible for traditional bank loans. While some title lenders will look at your credit, your history won’t be the primary focus. In fact, in Houston, on-time payments can result in a lower monthly payment and interest rate.
How Soon Can I Get Cash?
The industry shines here, too. Firstly, you can apply completely online, from the comfort of your home or office. After submitting the application and all required materials, you’ll likely get a decision that day, sometimes within minutes.
Once you’re approved, you can expect to receive funds by the next business day. The lender will usually have options in terms of payment: in-person pickup, an overnight check, through a local MoneyGram location, or direct deposit. If you opt for the latter, be sure your bank account is able to handle ACH transfers before you apply.
That’s how you can get a title loan in Houston. Such a loan can be a good way to get you through an emergency. Just be certain you can make those payments, plus interest, before signing off on one.