Title Loans in Chesapeake, Virginia: What You Should Know Before Applying
In Chesapeake, VA, title loans also go by the names pink slip loans, title pawns, vehicle title loans, and auto title loans.
It is a type of loan wherein the borrower uses the equity of their car to take out a short-term cash loan for emergency purposes.
Chesapeake Virginia title loans are quick, accessible, and hassle-free.
It’s SUPER CONVENIENT that you can complete the entire loan procedure online on the company website!
Who Are Chesapeake VA Title Loans For?
A car title loan is for you if:
- You can not get a cash advance
- You have bad credit
- Are pressed for time
- Or, for some other reason, can not take out a traditional bank loan or from a credit union
What Are Chesapeake Title Loans Used For?
- Business funds
- Cash emergencies
- Hospital bills
- Tuition fees
- Utility or rent bills
- Other unforeseen cash expenses
Am I Eligible for a Title Loan in Chesapeake, Virginia?
Most probably!
To apply for title loans in Chesapeake, Virginia, you need to be:
- A U.S. citizen and resident of Chesapeake, Virginia
- At least 18 years old
- The sole owner of a fully paid vehicle
Should You Get Title Loans in Chesapeake, Virginia?
We’ve listed the pros and cons so that you can weigh your options:
The Good
Here are the advantages of title loans in Chesapeake, Virginia…
Easy and Hassle-Free
A title loan company will only ask you to submit the very basic documents, most of which you already have.
Not only that, but they will also be happy to assist you in getting the papers you don’t have yet!
You can now forget about the long lines, mountain of requirements, and the slow, complicated loan process traditional bank loans have!
No Credit Check Required
Most lenders of fast auto loans won’t conduct a credit check, but some of them still will.
But don’t worry!
Even if they do, having a bad credit score WILL NOT automatically disqualify you from applying for a car title loan.
It’s just that a borrower with a good credit score has more benefits.
They usually enjoy lower interest rates, a higher maximum loan amount, and more negotiating power.
Instant Approval
A car title loan ALWAYS gives their decision on your loan application the SAME BUSINESS DAY you apply!
And if you visit your lender and submit ALL the obligated documents, you can get approved as fast as 30 minutes to 1 hour!
This makes it perfect for cash emergencies, unlike a traditional bank loan where you’ll never get the decision on the same day.
You Can Borrow a Bigger Loan Amount
Unlike payday loans, title loans require you to put up your vehicle as collateral. And thanks to that collateral, you get to borrow a bigger loan amount!
Payday loans and vehicle title loans are often likened to each other since they are both short-term and high-risk loans catered to customers that can’t get a cash advance.
But if your need for cash is bigger, you should go for vehicle title loans instead of payday loans.
The Bad
Now let’s look at the factors a vehicle title loan borrower should be aware of:
Interest Rates Are Sky High
The average interest rate for vehicle title loans in Chesapeake, VA, is 25% monthly. If we translate that into annual percentage rates, it comes out as 300%!
Aside from the high-interest rate, a title loan lender will also charge service fees, finance charges, and possibly other additional fees.
Short Term Loan
Short-term loans look good at first because it is easier to get approved.
But it also means that you have a limited time to pay back the money you owe your vehicle title and loan lender.
The loan duration for a vehicle title loan is usually 30 or 60 days, depending on your lender.
So unless you already know where to get the money you borrowed back within the next 30 to 60 days, think twice about taking out a title loan in Chesapeake, VA.
What Will I Need to Get a Title Loan in Chesapeake, Virginia?
Here are the usual documents that most lenders of auto title loans will require:
#1: Your Car Title
Let’s start with the most important document.
Your lenders of Chesapeake title loans will ask for the original car title, so make sure to bring that and not a copy of it.
Your title also needs to be CLEAN and LIEN-FREE. Your car must be fully paid for, solely owned by you, and not under any other type of loan as collateral.
#2: A Government ID
Any government-issued ID with a photo of yourself will do. Your lenders of auto title loans in Chesapeake, Virginia, need to be assured of your identity.
As it appears there, note that your name needs to MATCH THE SAME NAME on your car title.
#3: Proof of Your Residency
Your auto title loan lenders need proof that you are a resident of Chesapeake, Virginia.
For this requirement, bring any of your phone or utility bills, a contract of your lease, or even your mortgage agreement.
#4: Proof of Income
Your payslip will do for this requirement if you are currently employed.
If not, don’t worry!
A regular income is NOT a requirement for getting an auto title loan! Here are your other options:
- Proof of inheritance
- Proof of social security benefits
- Proof of business income
- A recent annual tax return
- Bank statement
- Property titles
- Or basically, any other official document that proves you can pay back the money you intend to borrow
#5: Character References
To further assure your fast auto loans lender of your identity and ability to pay back your loan, you will also be asked to submit 1 to 2 (or sometimes up to 4, depending on the lender) character references of people NOT RELATED to you.
Your lender will also ask for their addresses, emails, and contact numbers to have that information ready.
#6: Vehicle Insurance Documents
Some lenders in Chesapeake, VA, will require this. Some won’t.
If your car currently does not have insurance, call your lender so they can arrange to have it insured.
#7: Car Registration Papers
Your car needs to be up to date with its registration to be approved for a title loan, so if it has been a while since you last registered it, let your Chesapeake title loans lender know.
They will be happy to assist you in getting your vehicle registered in no time!
#8: A Copy of Your Keys
Your fast auto loans lender will also duplicate your car keys, or you can give them an extra copy if you have one.
This is for easier repossession if it comes to that.
#9: Photos of Your Car
You also need to give your lenders 4 pictures of your car (the front, the back, and the 2 sides).
If you’re pressed for time, they can also take the pictures for you.
#10: Your Bank Account
This one is OPTIONAL.
You will only need to submit your bank account details if you opt to receive your loan cash through a direct deposit.
Your Chesapeake Virginia lender will only require that the account is under your name, and it doesn’t have to have a minimum amount in it either!
What Is the Loan Process Like?
Here’s how the short-term loan approval process works!
Step 1: Do Your Homework
Car title loans in Chesapeake, VA, are known for being FAST, but there are 2 steps that you SHOULD NOT rush. The first one is the research part.
Ask around and scour the internet for the best lenders in Chesapeake, VA.
Read the customers’ reviews, compare their competitive rates, title loan terms, repayment terms, etc.
Step 2: Apply Online
After choosing the best lender of Chesapeake title loans, it’s time to get pre-approved!
Visit your chosen title loans lender’s website. The first thing you will see is the pre-approval application form.
Please fill it out and wait for your Chesapeake Virginia lender representative to contact you. You could also give them a call to speed things up.
Although, this step is completely optional.
If you would rather go straight to the office of your car title loans lender, you can still get your approval decision within the same day.
The only purpose of the online pre-approval is to make things easier for you.
You can ask them the questions that are bothering you, book an appointment at your preferred time, and confirm what required documents they need from you.
Step 3: Meet Your Lenders
Next, gather all your required documents and drive your car to your Chesapeake, Virginia lender.
This is where they will assess your documents, ask a few questions, and assess your car to see if it will qualify as collateral for their vehicle title loans.
If everything looks good and they decide that you do qualify for their car title loans, your lender will let you know the following:
- Your repayment period
- The maximum loan amount you can borrow
- Their interest rates
- Their finance charges and other fees
- The total cash you will have to pay them once the loan period is up
Step 4: Contract Signing
Did you like everything your Chesapeake Virginia lender offered you? Those terms are not final yet!
The next thing you need to do is negotiate with them.
Start with the ones you aren’t satisfied with, then push for better terms in your favor for the rest of the terms.
Remember, each borrower gets their customized contract, so you can ALWAYS negotiate your way to the terms you want.
After agreeing to the contract terms, your lender will prepare your contract and ask you to read and sign it.
But before you sign, make sure you read EVERYTHING. This is the second part of the title loans process that you should not rush.
We advise that you read the entire thing at least TWICE to ensure you won’t miss anything important.
And while you’re at it, check it for hidden fees or pre-payment penalties.
Step 5: Get Your Money
Here comes the fun part!
You can now get your loan money after signing your vehicle title loans contract. You can receive it in any way that is convenient for you, including:
- Direct deposit to your bank account
- Money transfer
- Cash
- Wire transfer
- And other common money transfer methods
And that’s it for the entire title loan process!
Frequently Asked Questions
Still, got questions about title pawns in Chesapeake, Virginia? We’ve got you!
What Will Happen if I Can’t Make Payments on Time?
Your Chesapeake Virginia title loan company can extend your loan duration for another 2 weeks or 1 month. This is called a rollover.
The total money you owe them (principal loan, interest, and fees) will be rolled over for another loan period.
You will also be charged a penalty, the rollover fee.
If you still have insufficient funds at the end of the rollover period, the new total cash you owe will be rolled over again for another period.
This is where it gets risky.
What Happens When the Borrower Keeps Rolling Over Their Loan?
If borrowers keep rolling over their vehicle title loan, they risk their credit amount ballooning.
In the end, the title pawns lender might take the collateral (your car) and sell it to recoup their losses.
So if you end up rolling over your title loan once and see a second possibility, get in touch with your lender and try to NEGOTIATE AGAIN.
Let them know about your situation, and maybe they can find a way to help you make payments on your loan without taking your collateral yet.
They could probably set up a new monthly payments scheme or another way to aid you.
Does the Chesapeake Virginia Government Regulate Vehicle Title Loan Companies?
YES!
Vehicle title loan companies in Chesapeake, VA, follow Virginia laws and are closely monitored by the government.
They protect hardworking Americans from getting scammed off their hard-earned cash.
So if a particular title loan business seems suspicious to you, report it to the authorities right away.
How Much Money Can I Get From a Title Loan?
You can usually loan 25 to 50 percent of your car’s estimated market value.
Your car’s current market value is determined by its Make, Model, Year, Mileage, and overall vehicle condition.
What Kind of Vehicles Can Get Approved for a Title Pawn?
Vehicle title loans are not just limited to cars! RVs, motorcycles, or even some boats might be acceptable collateral to your lenders.
Ensure to give them a call first to confirm what kind of vehicles are acceptable to them.
Can I Take Out More Than 1 Title Loan?
YES!
But you have to apply separately for both, even if they are both under your name and will be under the same lender.
Both vehicles also need to satisfy the same requirements, and you have to prove that you can repay both loans on time.
Summary
Getting a title loan in Chesapeake, VA, is a good choice for a borrower that can’t get a cash advance, is not currently employed, or does not have a steady income.
It’s a great choice for someone who needs to use the equity in their car and use it as collateral to get a loan.
A bad credit score won’t stop you from getting approved.
Many lenders in Chesapeake, Virginia, won’t even perform a credit check on a potential borrower in the first place.
In Chesapeake, Virginia, Title loan companies give out loan decisions in LESS THAN AN HOUR on a business day.
Borrowers also get their much-needed cash on the same day that they apply.
But Chesapeake Virginia auto loans are also high risk due to the expensive fees and high-interest rates, short-term payments, and the very real possibility of losing your car.
In Short
So remember to do your research in Chesapeake, VA, compare their rates meticulously, check every corner of their title loans website, and look out for hidden fees and penalties.
Borrow as little as you can, and if you can repay your credit earlier than the due date, don’t hesitate and do it immediately!