A title loan is a way to get a large sum of money with no credit check and no rejection, using your car as collateral. Generally, a title loan does not require proof of employment or current income. As such, they typically carry a high interest rate and inflated APR. Specifically, the following states may offer title loans with no restrictions on amounts or interest rates
- New Mexico
- South Dakota
Although these states are considered to have less stringent rules for lenders, they contain a number of prohibited practices. For example, title loan companies in Virginia cannot responsibly make auto loans to military personnel. There are many differences in each state’s laws, and you will need to get used to them.
Legal Guidelines for Title Mortgages – Loophole States
All of the loophole states have laws prohibiting excessively high interest rates and specific terms for view car title loan laws for 2021, but the legal framework is flawed. In each of the states in question, it is possible to offer title loans by complying with existing rules or going beyond them.
In Kansas, title loans are not officially permitted or expected to be permitted under credit reporting laws. However, online lenders approved for title loans can get around this restriction by restructuring their title loans. By offering these loans through an open rating system, lenders can very easily circumvent these regulations.
South Carolina and California are two states that have attempted to ban car title loans using the same approach. In other words, by prohibiting interest rates below a certain value, they seek to discourage individuals from lending against a car. There is, however, a simple workaround: only title loans above this threshold can be offered.
In Louisiana, the minimum amount for a title loan is $350 and the loan term is two months, not one month as in many states. However, Louisiana title lenders have adapted to these rules and continue to offer title loans.
Changes to state legal rules regarding title mortgages
If you want to learn more about mortgage rules and options, Freeway Title Loans is a great place to start.
The Benefits of a Title Mortgage
- Fast approval process
- No repayment penalties
- Stay in the car
- No need to check with the dealer
- No sub-prime credit history or no credit history at all
- Money will be transferred to your account
- Easy to understand agreement
- Borrow only the money you need
You can get a secured mortgage using the equity in your car. In most cases, it is difficult to get an unsecured mortgage. Private mortgage lenders ask for employment details and check that you have a good or excellent credit history. Installment loan lenders do not require a good credit history. However, they do need to make sure that you have a good repayment history and that you have not defaulted on any previous loans. You can borrow hundreds of dollars on credit against the title of your car. Most companies will allow you to borrow 60 to 70 percent of the value of your car, which will allow you to continue driving it. The lender will accept the pink slip as collateral and return it to you if the funds are already available.