Car Title Loans in Covington, Kentucky
Are you a resident of Covington, KY, who has run into some unexpected expenses? Or maybe you have bills piling up, and your income can’t cover them?
Don’t worry because you can get some money quickly if you have a fully-paid off vehicle in your name!
You can do this by looking into car title loans! Keep reading to learn more!
What Are Car Title Loans?
An auto title loan is a short-term loan you can take out for some easy and quick cash, similar to payday loans.
You don’t have to jump through too many hoops to get approval for car title loans, plus the interest rates are not as high as other short-term loans.
Car title loans also have many other names. Check this list to see what else they’re called:
- Pink slip loans
- Auto title loans
- Title pawns
If you’re looking for title loans in Covington, ensure that you check other loaning companies offering loans under the names above.
The Qualifications for a Car Title Loan in Covington, KY
It’s easy to get a car title loan in Covington! Here are the required documents and other factors you’ll need for the title loan process and how to qualify:
- A Valid, Government-issued ID
- Proof of ownership, like a clear vehicle title
- It would be best if you were at least 18 years old to take out a title loan.
- You’ll need to bring the car itself for inspection
- Photos of the car from the front, back and sides, and its VIN, or Vehicle Identification Number.
- Proof of income and employment
Some will also ask for your vehicle registration and insurance, plus your bank account information in a loaning process.
Filling out the application form will require a few of your details, like your phone number and proof that you’re a resident of Kentucky.
What if I’m Not Employed?
You can still take out a car title loan if you’re unemployed! Your proof of income can come from many sources, like:
- Social security
- Unemployment benefits
- Disability benefits
After reviewing your documents, your title loan may be approved on the same day!
How Much Cash Can I Get From a Title Loan in Covington?
A quick process is great for convenience, but what’s the most money that customers can expect to earn per loan?
Kentucky title loan laws dictate the minimum and maximum amount of cash given for car title loans.
When you borrow money for a title loan, the lender is obligated to provide you with a minimum loan of $350.
On the other hand, the maximum loan amount you can receive for a title loan is $50,000, depending on the review of your provided property.
What Happens to My Vehicle Title?
Once you’ve sealed the deal, the loaning company will keep your car title as collateral. This is so you can continue to pay off your title loan and keep using your vehicle simultaneously!
At no point in the process will they ask you to leave your vehicle with them. This is what separates auto title loans from auto pawns.
You’re exchanging your car for cash in an auto pawn, but it’s the title loan title. Some lenders might ask you to install a GPS, and a starter interrupts the device in your vehicle.
These act as additional security for them and lets them know where you are. It’s also so the lending company can turn off the ignition system in your vehicle in case they need to repossess it.
Title loans in Covington won’t leave you without a means of transport. Ensure you pay back the money you owe on time!
How Long Will the Loan Process Take?
The whole process can be completed in a single business day from start to finish!
You can even get pre-approved before your formal application begins, as long as you give a few details about your car first.
Many lenders in Covington, KY, offer same-day approval to get your money as fast as possible!
Will I Need to Go Through Credit Checks?
You might have heard that getting a car title loan won’t involve a credit check.
While this isn’t completely wrong, lenders in Covington will usually conduct credit checks on potential borrowers.
Going through a credit check on your credit history isn’t bad. It’s part of an assessment that lenders go through to ensure that you can repay your obligations on time.
A poor credit history won’t impact your chances of getting a large amount of money because the most important factor in title loans is your car’s value.
However, it can decide whether you are accepted or not for the loans provided by the lending company if you have poor credit.
Do note that Covington title loans will also consider your income to decide the title loan amount and repayment terms.
This will include both monthly and annual earnings.
Will Bad Credit Affect My Chances of Getting Approved for a Loan?
If you’re wondering whether bad credit will stop your title loans from getting approved, don’t worry! You can still qualify for a loan even if you have bad credit.
The most important thing your loaning company needs to know is the value of your car because it will determine how much money you can get.
However, it is still recommended to have a good credit score because this increases your chances of being accepted for loans!
The best loaning companies and professionals you can find should always lay out all of your agreement’s loan terms and conditions, including the interest rates they offer.
Ensure that you get a loan with the most convenient terms!
How Can I Repay My Loan?
Before enjoying your new cash, you should also be aware of how you can pay back your loan.
Your repayment obligations will depend on your lender’s plan, but a few standard repayment methods are available.
Loans will usually have a repayment date of 30 days after taking out the loan. If you have a longer-term agreement, you can return it every month to repay a standard amount.
If you’re too busy to go back yourself, you can also set up an automatic deduction in your bank account.
Your lender will automatically collect your monthly payment so that you can skip the hassle!
How Are the Interest Rates for Title Loans in Covington, KY?
The interest rate of these loans will depend on your agreement with your lender. Ideally, you should only get title loans that offer lower interest rates to make repaying easier.
But title loans will generally come with a 36% APR or Annual Percentage Rate. Ensure that your plan has competitive rates!
Be careful before entering into any loan agreements because some lenders will offer terms with an APR of up to 300%!
What if I Can’t Pay Back My Title Loan on Time?
If your income since taking out your loan still can’t cover the loan amount, you still have a few options.
You can ask your lender for an extension for your title loan, which will give you more time to repay the loan. However, you may also be charged fees like a processing fee and other types.
Otherwise, the moneylender may repossess or sell your car. Once your repayment period is up, they have the right to do either.
Remember that car title loans won’t result in bad credit if you don’t default on them!
Frequently Asked Questions (FAQs)
Here are some frequently asked questions about Covington title loans!
Can I Still Use My Car?
You might be wondering if the lender will take your vehicle away after you take out a loan. Well, worry no longer!
The best thing about car title loans is that you won’t have to worry about being asked to leave your car with the lender!
Covington lenders will only use your car title as collateral, not the vehicle itself. You’re completely free to use your vehicle even after receiving your money.
Can You Apply Online for Covington Title Loans?
You don’t have to leave the comfort of your home to get a title loan! Customers can apply online to skip having to fill out documents in person.
You have to visit the lender’s website and fill out the application form there. If you can’t find one for your local Covington, KY lender, you can always apply at the business.
Keep in mind that your lender may use the personal information you entered to contact you for marketing purposes.
What Other Options Do I Have?
If you need funds fast, you’re not out of options but don’t want to enter an auto title loan!
You don’t have a car, but you have decent credit. In that case, you can ask your local credit union for a personal loan.
You could also look into cash advance loans. But be aware that defaulting on any loan will negatively impact your credit score.
If you’re looking for cash loans, you can ask your family members and friends for extra money.
It’s difficult to address, but it definitely won’t require collateral or a credit check.
Covington Title Loans: Conclusion
Getting a title loan in Covington, KY, doesn’t have to be a long and difficult process. If you’re overloaded with fees, you can easily ask for the funds you need to be borrowed.
As long as you have all of the proper eligibility requirements and the money to pay the obligations back, you can apply for a loan either in-person or online!
Hopefully, your loan application was hassle-free, and you can easily repay what you owe!