Title Loans in Frankfort: What You Need to Know Before Applying
Stuck in a financial situation that requires cash TODAY?
Whether you need it for school fees, an unexpected business expense, a hospital emergency, or whatever urgent reason, we’re here to help out!
We’ll walk you through the entire process and the required documents and help you weigh whether a title loan is a right solution to your situation.
We will also be answering a few questions you might be wondering about!
Ready to find out more? Let’s go!
Who Are Vehicle Title Loans in Frankfort, KY For?
Title loans are usually for borrowers who…
- Can not get a cash advance from their company
- Have a bad credit history (or haven’t had the chance to build a good one yet)
- Only have their car as collateral
- Can not get a loan from the bank
- Need urgent cash TODAY
What Are Car Title Loans in Frankfort, KY?
If you’ve heard of title pawns, a pink slip loan, or auto title loan, they all work the same way as car title loans.
It is a short-term loan form wherein you hand over your vehicle title to your lenders as collateral to borrow cash fast.
The loan process is famous for being SUPER FAST and CONVENIENT, and decisions are made in just 1 business day!
Am I Qualified for Car Title Loans in Frankfort?
You can be a title loan borrower as long as you meet all of the following:
- A US citizen and resident of Frankfort KY
- At least 18 years old
- Own a fully paid, clean and lien-free vehicle that can be put up as collateral
How Do I Know if Frankfort Title Loans Are for Me?
Let’s start with the good…
Pros
Here are the advantages you can look forward to…
Instant Cash
Frankfort title loans are very RELIABLE when it comes to any financial situation that requires urgent cash.
The final approval is given on the same business day you apply online, and the entire loan process is QUICK and CONVENIENT!
Easy Approval Process
Auto title loans require fewer requirements than traditional bank loans, a credit union, and any other usual lending institution.
They only ask for the very basic documents, evaluate your car, ask a few questions, then give you their decision.
It’s also very easy to qualify for and get approved (you can even apply online!), and the whole process is HASSLE-FREE!
No Credit Checks Required
Most lenders of Frankfort title loans won’t conduct a credit check while evaluating your application.
But even if your lender does (and you have a bad credit score), don’t worry too much.
Title loan lenders are more concerned about your ability to pay the loan than your past and low credit score.
As long as you can prove that you will have the funds to repay your debt to them when the due date approaches, your bad credit score won’t matter!
However, it may affect you during the negotiation process.
Borrowers with a bad credit score are less likely to get offered a lower interest rate or a bigger loan amount and usually have lesser negotiating power than borrowers with a good record on their credit report.
You Still Get to Drive Your Auto
Your lenders will only hold on to your vehicle title during the loan duration, so you can still drive it and use it as usual!
Cons
And here is why you should think twice before borrowing…
Short Term Loan
The time period for the loan is usually 30 or 60 days, depending on what you and your lender agree on.
After which, you are expected to pay back the money you owe, which includes the principal money, the interest, plus additional fees.
It is a downside because you might be a borrower who finds this 1 to 2 month period too short of paying back the money you owe.
High-Interest Rates
No matter how different title loan companies boast of their competitive interest rates, the average for auto title loans in Frankfort, KY, is 25% per month.
If we compute it equivalent in annual percentage rates, that’s 300%!
It’s higher than what most banks charge a borrower for loans and credit cards, making this type of loan a high-risk one.
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.
Expensive Fees
Aside from the interest rate and the principal loan amount, title lender’s fees and other additional fees depend on the lending company you choose.
You also need to scrutinize the fine print in your contract before you sign and look out for prepayment penalties.
Some lenders charge this to discourage you from paying your debt before the due date.
You Might Lose Your Car
Of course, when you surrender your car title, there is this very real (although small) possibility of losing your car if you cannot repay your loan in the future.
In the worst-case scenario, your lender can take your car and sell it to recover its losses.
If this happens and the money you owe is bigger than your car’s value, you get off the hook for the remaining amount.
However, if your debt money is smaller than its value, your auto title loan lender can keep the extra money from selling your car.
What Do I Need to Get Auto Title Loans in Frankfort, KY?
These are the commonly required documents for most car title loans in Frankfort, KY:
Car Title
The main requirement for a car title loan is a car that is solely under your name.
The vehicle title you submit must also be CLEAN and LIEN-FREE.
Your car has to be fully paid for and can not be standing as collateral for any other loan.
Government Issued ID
Any government ID will do for this requirement, as long as it also has a picture of yourself.
As it appears here, your name also needs to be the same as it appears on your car title.
Your auto title loan lender will need it to verify your identity and the car’s ownership.
Proof of Residence
To further prove your identity and to prove that you are a resident of Frankfort, KY, you can submit any of these to your lender:
- Utility bill
- Phone Bill
- Mortgage Agreement
- Contract of Lease
Or any other document that can prove your place of residence.
Proof of Income
To get approved for a car title loan, you need proof that you will have the funds by the end of the loan duration.
Any of these documents will do for your income proof:
- Your latest payslip
- Title of your property
- Proof of inheritance
- Proof of social services benefits
- Proof of retirement funds or benefits
- Proof of trust funds
- A bank statement
- Proof of business income
- Proof of alternative income
Or, basically, any other document that will prove your ability to repay the car title loan.
Character References
You will also need 1 to 4 people (depending on your lender) that will vouch for your identity and ability to pay off the loan amount.
They cannot be related to you, and you will need to submit their contact information, such as their telephone numbers and addresses, to your lender.
Car Registration Papers
You will also need to ensure your car is up to date with its registration and submit the registration papers to your title loans lender.
Your auto title loan lender can register it for you if it isn’t.
Car Insurance Papers
Depending on the car title loan lender, you might also be asked to prove your car’s insurance.
If your car isn’t insured, your auto title loan lenders can also have it insured in no time.
Photos of Your Car
You will also need to submit 4 pictures of your car: the front, the back, and the 2 sides.
Car Keys
Your lenders will also need a duplicate of your keys for easy repossession, if ever.
If you don’t have a copy, your title loan lenders will be happy to assist you.
How Do I Apply for Frankfort Car Title Loans?
Ready to apply for a title loan? HHere’show!
Step 1: Look for the Best Lender in Frankfort, KY
There are several title loan lenders in Frankfort, KY, but the best title loan company has:
- Competitive rates
- Low monthly payments
- Great borrower reviews
Remember that the best lenders are the ones that can meet you eye-to-eye. If they are compassionate, understanding, and respectful, get that lender!
Having the wrong lender work with you will make your life harder and more complicated!
Step 2: Apply Online
When you’ve found the title loan company for you, the next step is to get pre-approved online.
Just visit their company website and fill out the online form that can be found on the first page.
Then sit back and wait for a representative to call you.
During the call, you can set an appointment to visit their office, double-check the requirements, and clarify some questions.
They will also let you know if you are pre-approved and can proceed to the next step.
Step 3: Visit Your Title Loan Lender’s Office
After your call, drive your car to your lender’s office near Frankfort, KY. Don’t forget to bring all the documents with you!
Your lender will evaluate your documents, ask a few more questions, assess your vehicle, and conduct a credit check.
You will also be informed of the following:
- The loan amount you are allowed to borrow
- Their interest rates
- Their service fees
- The repayment scheme
- Their loan terms
- And other relevant information
If you’re happy with what your title loans lender has offered, you can now proceed to sign your contract.
If not, there is still room for flexibility!
Title loan contracts are ALWAYS made individually since the terms offered to depend on your credit report, car value, and many other factors.
Everything from the loan amount down to the interest rate is still up for negotiation!
Step 4: Sign Your Online Title Loans Contract
After you and your title loans lender agree on everything, it’s time to sign your title loan contract!
Before you sign, remember to do these first:
- Check for HIDDEN FEES
- Read the FINE PRINT
- And REREAD your contract thoroughly, to make sure you haven’t missed anything
Step 5: Get Your Instant Cash
Here are the available payment options for you to get your money:
- Direct deposit to your bank account
- Cash
- Check
- Wire transfer
- Online payment
- And other common money transfer services
How Are Title Loans Different From Payday Loans?
Payday loans cater to borrowers who can not get a cash advance but are stuck in a financial emergency between paychecks.
Payday loans do not require collateral to get approved, unlike title loans, whose main requirement is a fully paid car.
And because there is no need for collateral, title loans can usually let their borrowers loan a bigger cash amount than payday loans.
The due date for title loans is fixed at 30 or 60 days, starting from the day you sign the loan contract. The due date is adjusted to fit your next paycheck for payday loans.
This way, payday loan lenders can be assured that repayment can be made as soon as you get cash from your paycheck.
Is a Title Loan a Secured Loan?
Yes!
Like banks and credit unions, title loan companies are governed and regulated by the state.
How Much Can I Get From a Title Loan?
The amount you can borrow from a title loan can be anywhere from 25 to 50 percent of your car’s equity.
What Are the Different Payment Options of Auto Title Loans?
Making payments on your cash loan is as easy as getting your cash loan! These are through:
- Cash
- Bank transfer
- Money Transfer
- Online payment
Or get in touch with your lender. They might have more ways for you to make your loan payments.
What Will Happen if I Can’t Pay My Loan by the Due Date?
If your loan due date is approaching, but you find yourself unable to pay, your loan will be “rolled over” for another 2 weeks to 1 month for a fee.
Your total debt amount (principal + interest + other fees) will be carried over for another loan period, with additional interest and the new rollover fee.
If it seems that you’ll have to roll over for a second time, get in touch with your lender before asking for another extension.
They might be able to set up a new payment plan that works for you or find other ways to help you pay your loans.
When Will I Get My Vehicle Title Back?
As soon as you’re done paying your total loan amount (principal, interest, and fees), your lender will give you back your title.
Can I Still Sell My Car After the Loan?
Yes!
When you’re done paying off your title loans, your lender will return the title to you, and your title will be clean and lien-free once again.
It will be as if it never stood for collateral at all.
Will Not Being Able to Pay My Auto Title Loans Affect My Credit History?
NO.
Just as a bad credit score won’t make you unqualified to get an auto title loan, being unable to pay back your cash loan WILL NOT reflect in your credit history.
Car title loans exist OUTSIDE your credit score. They are unaffected by it and cannot affect it either.
Frequently Asked Questions
Still, have more questions about title loans? WWe’vegot all the answers here!
Do I Need a Bank Account to Get a Title Loan?
No.
The only situation where you will need a bank account is if you prefer to receive your urgent cash through a direct deposit.
It does not have to have a certain amount in the bank either, and the account just needs to be under your name.
How Is My Car’s Equity Determined?
Your title loans lender will estimate your car’s value by its:
- Make
- Model
- Mileage
- Year
- Overall condition
- Vehicle extras
Is a Car Title Loan Limited to Just Cars?
NO.
RVs, motorcycles, and sometimes even boats are acceptable collateral to title loan lenders.
If you have a secondary mode of transport anyway, we highly encourage you to use that instead to apply for an auto title loan.
Doing this will also give you some peace of mind that if the worst happens and you find yourself unable to repay your loans, you will not lose your primary means of transport.
Remember to give your title loan lenders a call first to confirm what kind of vehicles are allowed.
Can I Take Out More Than One Car Title Loan?
YES.
You can take out more than one car title loan ( even simultaneously!), but it has to be 2 separate loan applications.
You can get one car title loan per car, even if they are both under your name and will be under the same lender.
And like your first loan, the second vehicle has to meet all the same requirements.
You will also have to prove your ability to pay both loans before their due dates.
Final Thoughts
And that’s all!
We hope you found this article informative and helpful.
In short, title pawns are easy to access, convenient, and reliable. But they also come with their own set of risks. So to minimize those risks, remember to do your homework!
Compare rates carefully, inspect every corner of their title loans website, and keep an eye out for hidden fees and penalties.
Borrow as little as possible, and if you can pay off your credit before the due date, do so right away!
Lastly, make sure you have a solid repayment plan before taking out a title loan to avoid getting stuck in a cycle of debt.