Car Title Loans in Eugene, Oregon: What You Need to Know
Do you need outright cash? If so, you are not alone!
Sometimes, we aren’t prepared for emergencies, from calamities, paying credit cards, tuition fees, accidents, and many more.
However, have you heard about car title loans?
They have become a FANTASTIC option for people looking for fast money within just a few minutes!
Here is some important information if you want to know more about car title loans in Eugene, Oregon.
What Is a Car Title Loan?
A car title loan works like any other loan.
However, this type of loan is a short-term financing solution that allows borrowers to get a certain amount of cash in exchange for their car’s title.
If you provide all the necessary documents and qualify for the loan application, you will get the loan amount in cash within the day! The car’s title will serve as the borrower’s collateral.
However, if you are not able to pay your loan on time, there’s a possibility that the lending company will repossess your car.
Remember to repay the amount in cash to avoid this scenario!
In addition, an auto title loan in Eugene also provides money for lenders who have not paid off their car in total; this type of loan is called a registration loan.
Loan amounts and the interest rate vary in what state you live in.
For example, if you live in Eugene, Oregon, the average auto title loan amount most lenders are willing to give is around $1000 to 10,000, but it can also go as low as $100!
To apply for a car title loan in Eugene, the documents needed for the loan application are your car’s title or equity, valid IDs such as a valid driver’s license, and income proof.
How Do Title Loans Work in Eugene, Oregon?
Car title loans might be known for fast cash and a quick application process, but they are also known for their high-interest rates.
Sometimes, the interest rates are high enough that borrowers have difficulty paying their loans.
Depending on your state, a car title loan in Eugene may offer borrowers around 25% of the finance fee.
However, that translates to an annual percentage rate of 300% and other additional fees.
For example, if you borrowed $1,000 in cash, you will most likely have to pay around $1,200 on average. That’s quite a hefty price.
Also, title loans have short-payment terms of around 15 to 30 working days.
If you can’t pay on time, the monthly interest rate and fees will soon pile up until it’s hard for borrowers to pay the remaining loan amount.
A customer often borrows money again to repay the recurring fine, leading to a debt cycle.
Why Get an Auto Title Loan in Eugene, Oregon?
Title loans aren’t for the faint-hearted.
However, if you need outright cash for medical bills, accidents, etc., a car title loan will most likely be your option in dire need.
Whatever the reason, car title loans might be the BEST option than banks and other credit union companies for such scenarios.
We’ve been telling you it is an extremely fast option to get cash, but let us explain why.
What Are the Advantages of Title Loans in Eugene, Oregon?
Problems pop every now and then, and most of the time, the only one who can help you is yourself.
If you need money and payday is still a few weeks away, title loans might be the ones you are looking for. Here are the benefits of title loans in Eugene.
Quick and Simple Application Process
The application process is a breeze!
Most, if not all, lenders in Eugene, Oregon, provide quick access to applicants via an online application, and people can easily qualify for a loan.
Almost all of them will require you to fill out basic information such as:
- Vehicle year
- Vehicle equity
- Vehicle make
- Valid IDs
- Vehicle owner proof
Applying for a title loan in Eugene, Oregon, is SUPER fast and convenient and will even be accepted on the same business day.
All you have to do is fill out all the necessary information, provide all the supporting documents and wait for approval from the lender directly.
Lenders in Oregon today have become a convenient option that they can provide fast cash for borrowers on a single business day.
If that’s not easy for you, we don’t know what is!
Limited Credit Check
Most lenders in Eugene, Oregon, don’t have to go through a very long inquiry process.
This process includes checking for your bank account, financial background, and whether you have low or no credit to qualify.
All they need is proof that you own your car, have all the valid IDs and documents present, fill out a simple form, and everything will be good to go.
They only need your car as collateral to give you the loan amount you need. The value of the vehicle and ownership is an essential aspect of a car title loan.
You Can Still Drive Your vehicle.
If you think the lending company will possess your vehicle, that’s not the case with title loans in Eugene.
The only thing the lender will hold is your vehicle title, not the vehicle itself.
That’s why there’s no reason to panic if you think that they will be the ones driving your car.
So, while you’re paying for emergencies, groceries, and other important stuff, you will still do your errands as the vehicle is still in your possession!
Payment options are convenient.
This financial solution also has its perks!
Most lending companies provide title loans that have a flexible payment plan to help borrowers have a more convenient time.
Sometimes, most lenders give borrowers lending options that are great for them and allow them to have a more convenient time paying in cash or online.
In other scenarios, if you can make cash payments on time, you will be pre-approved once you settle everything from the loan.
As a result, you will have a good credit background in the lender’s database.
Lower Interest Rate
While title loans are specifically known for their high-interest rates, there are still companies offering low-interest rates.
Why is that?
Because you already have your car as collateral, the transaction isn’t considered high risk like other types of loans.
Still, if you aren’t able to make monthly payments, there’s a big chance the lender might get your vehicle.
So, pay your title loans ON TIME to avoid the risk of repossessing your vehicle!
What Are the Disadvantages of Car Title Loans in Eugene, Oregon?
There will always be risks involved with auto title loans in Eugene, payday loans, and loans in general.
To help you make the best possible decision for your financial rut, we’ve listed some reasons why you might think these loans are not the right decision.
Your Lender May directly Check Your Credit Score.
If you’re borrowing money from the bank or any money lending union, chances are, they WILL do a financial check whether you have a decent to perfect credit history.
The same can be said for loan companies; while some might not do any credit checks on your history, some still do.
So, if you have a bad credit score, the likelihood of you getting approved is minimal. Some companies still follow strict guidelines when it comes to this.
However, if anyone has a good to perfect credit history, they will most likely benefit from it with better deals the lender provides.
Some companies would lend you cash even if you have poor credit.
repossession of your asset
Like any other loan, there’s the risk of losing your assets.
In this case, failure to pay your title loan means the lender has the right to repossess your car!
As a result, the lender also has the right to sell your car to make a profit. That’s the business of auto title loans in Eugene, Oregon.
But if the profit is more than what is owed, then the lender will give the difference to you.
However, if the selling price is much lower than your debt, they get to keep everything. That’ can’t feel good.
Soaring interest rate
Auto title loans are short-term financing options for emergencies, usually a month. At first glance, you’ll see their interest rate is relatively low.
However, if you aren’t able to settle your loan on time, their interest rate will SOAR high until it is inevitable to loan back again to repay the previous loan.
As a result, most customers go into a cycle of debt in which it would be hard to come out.
Short repayment terms
The catch to getting approved on the same day is you only have a short window of time to repay the loan amount.
The attractiveness of quick cash allows a customer to make hasty decisions. A loan agent or lender typically gives you around 15 to 30 business days to repay your cash loan.
But. if you cannot make on-time payments, the interest rate for the ensuing months will increase big time.
So, if you don’t have the cash, it would be wise not to get enticed by a loan agent to take a loan.
Always read the terms and conditions of the lender and know the risks involved. Find the right lender for your loan.
Car Title Loan Alternatives in Eugene, Oregon
There is a high chance of sliding into a cycle of debt with car title loans; that’s why it is better to avoid this type of title loan in the first place.
Here are some better alternatives to title loans in Eugene that may help you out during a financial bind without the possibility of losing your car.
ask for cash assistance
If you need cash because something unexpected happens, why not try your luck with your employer?
Asking for financial assistance is NEVER WRONG!
If you have a good relationship with your employer, you will most likely be given a cash advance for this matter.
In addition, you can also ask for money from your family, friends or relatives. This way, there’s no possibility of losing your asset as most title loans do.
If you take this route, let them know how you will be able to repay the money you owe. This way, both parties can reach an agreement beneficial to the parties involved.
Some organizations offer financial assistance to people who need cash immediately, such as charitable organizations or churches.
For example, a charity might be a good idea if the money you need is related to the well-being of your family or any unexpected emergencies.
credit card cash advance
Another way to get money fast is through a credit card cash advance.
Credit card cash advances have high-interest rates, but they are more manageable than most title loan companies in Eugene, Oregon, are offering.
In addition, cash advance rates are relatively better than title loans, even with high-interest rates.
Plus, there are no risks as you won’t use any assets such as your car as a guarantee.
handle your existing debts
If you need time and money when paying any existing debt, you can ask your car title loan lender to extend the time to repay your debt.
You can also rearrange payment plans to make it convenient for both parties.
Much like title loans, payday loans are short-term loans in which the cash is used to cover the expenses until your next payday, hence the name payday loan.
If you want to apply for a loan, the loan process is quite simple and can be done through online applications or by filling out a simple form.
Once qualified, the lender will send the money to your account on the same day you applied. A payday loan is unsecured, meaning it doesn’t need any collateral.
Short-term business loans
Almost all businesses face problems from time to time.
If you need money because something came up with your business, then a short-term business loan might benefit you!
This option benefits those who need outright cash as the sales cycle is relatively longer than the scheduled payment.
However, this type of loan benefits people with new or existing businesses.
Financial institutions such as banks offer short-term loans because they are less risky than loans with longer maturity dates.
Short-term bank loans
Needing outright cash might cause you to exhaust all your available options.
Before going to a local loan lender in Eugene, Oregon, you might want to try your luck in various financial institutions such as banks or lending institutions.
These are good title loan alternatives as you won’t have to give your vehicle title!
However, these institutions are incredibly strict, so if you have a poor or bad credit history, you’ll have to try other options again.
Tips For Getting The Best Car Title Loan Rates
Different kinds of title loan companies offer “car loans with bad credit” agreements.
Don’t let those fool you!
Most lending companies which often offer these kinds of crazy deals are notorious for their staggering interests and hidden fees, leaving borrowers with a mountain of debt.
To avoid this, here are some essential tips for not to get ripped off by these ridiculous deals.
Ask for detailed quotations.
Provide as much information as possible and go for lending companies that provide detailed quotes.
Do not rely on verbal quotes and promises of approval!
Get a hard copy of all the documents you’ve signed up for as much as possible.
Some car title loans in Eugene, Oregon, have shady backgrounds, so it is better to equip yourself with the proper documents.
use a guarantor
If you find that your poor credit history will hinder your approval for a title loan, a guarantor might help you out with better deals for your title loan.
The guarantor is another name that you will add to your debt.
Moreover, taking this route means you should ensure that your guarantor understands their responsibilities and knows what everything is going on in the documents.
attention to interests
Definitely, you will be paying for the principal cost. However, keep your eyes on the rates each lender provides.
Title loans are short-term loans, so interests are likely high.
Interests go for around 15% to 30%, so be sure to settle off your debt on time to avoid the piling of interests.
The best tip we will give you is to settle off your loan before your due arrives!
don’t go desperate
Many lenders will trick you into getting a title loan for low payments.
Most of the time, these lenders are companies that aren’t revealing the terms and conditions of this title loan.
Don’t fall for this trap!
Always insist on taking everything into account, such as the interests, payment plans, etc.
Avoid shady auto title loan companies.
Most shady title loan companies focus a lot on “approval” and “no credit check required.”
These, in turn, ensure that borrowers will be more than thankful for approving their loan and agree to their ridiculous loan terms and agreements.
These companies are more likely to EXTORT you rather than helping you.
So, avoid this type of lender based on their offer as they will only do more harm than good!
use every resource you can find
Exhaust all your resources in finding the best title loan companies in Eugene.
Whether it’d be traveling from lender to lender that offers title loans or going through sites for online title loans, use every opportunity you have!
The more companies and sites you visit, the better chance you have at securing better deals and interests.
In addition, if you already have information about various lending companies, you can compare prices, rates, and deals.
Remember, each title loan company offers differently, so try to research and look for some offerings that provide flexible payment terms and lower interests.
pick up the phone
There’s only much you can do via online title loan applications. Securing title loans can be smoother if you’re up close and personal with a loan agent.
So, pick up the phone and communicate well about all the deals and rates you will be getting.
This way, you will be approved on the same day and get valuable information about your title loan.
ask for alternatives
When title loan lenders complain about your poor credit background and lack of assets, talk to them about alternatives that can help you qualify for a title loan.
These companies will change their tone if you have a cosigner or an asset that may serve as a guarantee of your loan.
If the lender sticks to their soaring rates, it is best to walk away.
Frequently Asked Questions About Title Loans in Eugene, Oregon
Here are some frequently asked questions about title loans in Eugene, Oregon.
Can I Get a Title Loan with a Bad Credit or Poor Credit?
Don’t worry; while a good credit score can easily land you good deals, not all hope is lost if you have bad credit background.
Almost all title loans allow you to take a loan based on your car’s equity value.
Your car title will serve as your guarantee that you will repay the principal amount along with interest.
In the case of a title loan, your title and proof of income work as your credit.
Title loans are a type of secured loan, which means there’s no need to run a credit check or have outstanding scores.
However, in some scenarios, various lending companies will still check what credit score or background you have.
You are likely to get approved for a title loan over a bank loan.
Can Title Loans Affect My Credit Score?
It affects in both ways.
If you pay on time, your credit score goes up! But your credit score will decrease if you default or miss monthly payments.
So, if you do not want your credit score to fall any lower, don’t default or miss payments.
If you can’t make payments on time, there are specific options where you can off your title loan in an extended amount.
Can I Get a Title Loan if My Car Isn’t Fully Paid Yet?
Yes, however, it depends on your car’s equity.
Still, you will most likely qualify for a car title loan. However, loan amounts will be based on the equity you have left in your car.
You can get money fast with car title loans offered in Eugene, Oregon if you are in a financial bind.
However, risks are always involved, such as losing your car or piling up debts.
As long as you know you have the ability to repay the lender on time, it is one of the easiest ways to get money as it doesn’t involve any financial check.
We hope that everything we mentioned above will give you a good idea of whether or not a car title loan is an answer to your problems!