A Basic Guide to Car Title Loans in Columbus, Ohio
Cash loans can be a PAIN because of the numerous paperwork and credit check. The approval process of some loan applications typically takes a week or so.
There is no assurance that you will be qualified to take out the loan amount during this time frame. If you require QUICK cash, this isn’t the option you’d run to.
Other options, namely car title loans, can provide you with SAME DAY cash and loan approval. See it reflect in your bank account instantly!
What Is a Car Title Loan?
So, what are car title loans in Columbus, Ohio, and how do these work? When applying for car title loans, you put your car’s vehicle title up for COLLATERAL.
A title loan, also known as an auto title loan or title pawns, is a short-term loan, and typically you are given 30 days to settle the loan amount.
Like other states, title loans in Columbus, Ohio, offer same-day funding time.
Title loan lenders will check the qualifying vehicle before releasing the minimum loan amount. But we’ll get into that shortly.
Columbus, Oh, Title Loans Requirements
Even if car title loans require a clear vehicle title, they’ll still need some essential documentation on your end.
You don’t need to worry about the number of documents you need to gather because it won’t be much. Applying for car title loans in Columbus, Ohio, isn’t hectic.
The following are the required documents:
Proof of Income
First on the list is PROOF OF INCOME. You might think that applying for Columbus title loans is a lost cost because you don’t have a stable income, but that’s not the case.
You can still apply for auto title loans in Columbus, Ohio, with or without a stable job because other lenders look at your other sources of income. Such as retirement money, other sidelines, and the likes.
With this being said, a lender’s credit criteria are flexible as long as they see that you have the means to pay back.
A lender’s credit criteria in Columbus, Oh, also include providing acceptable property for the actual loan.
Proof of Residency
Second on the list is PROOF OF RESIDENCY IN COLUMBUS, OHIO. When applying for a title loan, one must be a permanent resident of the state.
This is because title loans are NOT available and legal in all states.
When you present your I.D. to Columbus title loan companies, you validate that you are a resident with legal rights to claim a loan from the said companies.
Photos of Your Vehicle
Third, include RECENT PHOTOS OF YOUR VEHICLE. You will give this to the lender directly through the application attachments.
Maximum loan and minimum loan amounts vary depending on your car’s make. How much cash they’ll be giving you will be determined AFTER the process.
References
Fourth, and last, throw in some SEVERAL REFERENCES. The references you can include DO NOT necessarily have to live in Columbus, Ohio.
Personal and professional references are welcomed by title loans in Columbus, Oh. They’ll help lenders assess if you demonstrate an ability to repay the amount.
Car Title Loan Process in Columbus, Ohio
Now that we’ve covered the basic requirements for Columbus title loans, let’s move on to its process.
Apply Online
Title loans are very QUICK and CONVENIENT. You can access almost anything online, including the application forms you need.
Usually, you’ll get connected to an unaffiliated third-party lender, and then you’ll get connected to the lender of your choice.
Electronically receive documents at the comfort of your house. Your direct lender will offer you immediate assistance once you inquire about auto title loans.
The lenders can do business electronically, or you can opt to go to their actual store to avail of the cash loans.
Correctly fill out all the necessary information that the lenders need. After such, you attach all the documents listed above. We’ll break it down for you again for reference:
- Proof of income.
- Proof of residency in Columbus, Ohio
- Recent photos of your vehicle.
- Several references.
Upon completion, lenders may give conditional approval. This means that Pass all these on the same day and wait.
Pending Review
Next is the waiting game. Typically, your lenders get back to you in a day or so as they review your application.
The process will be swifter if you provide them with all the documents you ask for.
If you, the consumer, qualify for a title loan, they’ll notify you IMMEDIATELY. More often than not, title loan companies have high approval rates.
The loan proceeds are primarily for personal, family, and household purposes. So generally, title loan companies and their loan proceeds do not service student loans.
Receive Cash
In Columbus, Oh, and other states, you’ll be able to receive the cash loans on the same day!
The actual loan amount and term of the loan that a consumer qualifies for may vary by consumer. So it isn’t a one shoe fits all type of loan.
As long as the lenders see that you demonstrate the ability to pay the loan amounts, you’ll immediately receive the money in your bank account.
Leave the original copy of your vehicle’s title, and you are good to go!
*It’s also important to note that the funding time is based on the final approval of all necessary documents.
Benefits of Car title loan services in Columbus, Oh
Applying for title loans in Columbus, Oh sure, is appealing. So we’ll attract you more with some of the numerous benefits of title loans!
#1 Convenient and Fast Loan
The credit decisions made by your title loan lender are swift. You’ll be able to estimate the minimum loan amounts and maximum loan amount.
With title loans, in as little as 24 hours, you’ll be able to know just how much cash you can receive.
If you don’t get approved for the actual loan amount you are eyeing, you can IMMEDIATELY find another alternative.
Another reason why title loans are so convenient in Columbus, Ohio, is because they only require a few documents. Unlike, let’s say, applying for a personal loan or any payday loans.
#2 High Approval Rates
Title loans encourage consumers to try out their services. Check this! Even if you have bad credit, you can still apply for Columbus’s title loan.
This is one of the reasons why those who have bad credit often choose to avail of this loan service.
Compared to banks and other loaning companies, being approved for title loans is as easy as 123.
Drawbacks of Car Title Loan Services in Columbus, Oh
Title loans are looking so good right now, especially if you are a resident of Columbus, OH. BUT it’s essential to think twice before carrying on with these sorts of loans.
#1 Potentially Lose Your Car
In title loans, you can potentially lose your car. The reason? You probably failed to pay back the actual loan amount right when the contract ended.
You have to be very VIGILANT to pay the loan on time. Lenders will usually require you to add a GPS device to your vehicle so that they can track your whereabouts.
And IF it so happens that you are unable to direct deposit the payment without giving them a heads up, then the lenders have every right to tow your car away from you.
#2 Be Buried Under Interest Rates
Without a doubt, the annual percentage rate of the title loan Columbus is INSANELY high.
There are federal laws regarding this, but the annual percentage rate is limited only to particular states that frown upon the said loans.
To explain, another reason why you can get deep in interest rate is that you can roll over the loan to the next month. As mentioned earlier, title loans are for a short period.
You can turn over the loan the next month and the month after that in Columbus, Ohio.
Frequently Asked Questions (FAQs)
If there are still some questions lingering in your mind about Columbus, Ohio, title loans, then we’ve got some answered for your sake!
Also, dial the phone number of your chosen company for any additional inquiries and concerns.
Can I Apply for a Second Car Title Loan?
Yes!
If you have another vehicle registered under YOUR NAME, you can put its title up for collateral.
If you are wondering about getting a second title loan, the process is similar to getting a first title loan.
This is also one of the benefits of getting a title loan. You can get more money while still being able to drive your car on your own time.
Can I Repay My Car Title Loan Early in Columbus, Oh?
You can pay early, although it’s best to watch out for other Columbus, Ohio, loan companies because of some charge prepayment penalties.
Other lenders, including those in other states, include prepayment penalties in their contracts.
Sometimes, they fail to mention this, but they must disclose all necessary information, such as hidden fees and whatnot, under the new federal law.
When Can I Receive my Title Back?
You can only receive your vehicle’s title back when you’ve paid the total amount. The lenders will discuss this further during the inquiry and contract signing.
Although the title loan services allow you to use the car despite being used as collateral, the car’s title remains with your lender.
If you cannot pay the total amount in time, repossession of your vehicle/property may occur.
Bottom Line on Car Title Loans in Columbus, Ohio
Always proceed with caution when choosing title loans. Why? Well, because an auto title loan is famous for its predatory lending.
This is because lenders seem to be taking advantage of desperate people for immediate cash and funding.
It looks appealing now, but there are significant consequences in the end. We HIGHLY encourage you to choose other alternatives before landing on this loan.
Other alternatives are banks, credit unions, personal loans, or finding a part-time job.
Others may choose this loan service because it is embarrassing enough to be turned down because of bad credit. But know that there are other solutions to get fast cash.