Title Loans in Novi, Michigan: Everything You Need to Know
If you’ve ever heard of a title pawn, auto title loan, pink slip loans, and pawn loans, those are all car title loans.
A title loan is a secured, short-term loan where you hand over your car’s title to your lender for 15, 30, or 60 days in exchange for fast cash the SAME DAY.
Title loans are easy to apply for and quick to get approved for, so it’s perfect for all your financial emergencies.
You can apply even if you have a bad credit score or no credit history! All you need is a fully paid vehicle as collateral!
Before You Apply for Car Title Loans, Novi Michigan
Unsure whether getting a title loan in Novi, Michigan, is the right choice for you? Let’s weigh both sides!
Pros
These are the advantages of auto title loans in Novi, MI…
Get Your Cash Fast
When you apply for a title loan, you ALWAYS get your loan application decision (and your loan proceeds) the SAME DAY.
And as if that’s not fast enough, if you get pre-approved online and come with your complete requirements, you can get approved in under 30 minutes!
This makes car title loans in Novi, MI, most attractive. It’s perfect for emergency cash needs!
Easy and Convenient
Unlike traditional bank loans that have a lot of paperwork and take several weeks to process, title loans in Novi, MI, will only ask you to submit basic documents.
Those documents are also very easy to get. You probably already have most of them lying around in your home!
The loan application process of title loans in Novi is also simplified and hassle-free to make it as quick as possible to give you the cash you need.
Use Your Car as Usual
Lenders of car title loans will only ask you to surrender your car title, not the car itself. So you still get to drive your car as usual during the duration of the title loan!
Bad Credit Is Fine
If your no credit or bad credit score is what’s stopping you from applying for traditional loans from financial institutions, you don’t have to worry about that anymore!
Lenders of title loans in Novi, MI, rarely perform credit checks when processing your loan application.
And even when they do conduct a credit check on you, your bad credit score won’t stop you from getting your title loans approval.
However, if they do a credit check and find out that you have a good credit score, you can enjoy some benefits!
Borrowers with a good credit history are offered lower interest rates, given better terms, and have more negotiating power.
Cons
Now here are the disadvantages that you should consider carefully.
Expensive
The average interest rate for a title loan is 25% monthly. If we convert that to annual percentage rates, that’s 300%, which is higher than what credit cards charge!
On top of that, there are also all kinds of additional fees lenders will charge you. There’s a title loans lender’s fee, a service fee, processing fees, and other additional fees.
There are also penalty charges that might apply to you during the duration of your loan.
You Might Get Stuck in a Cycle of Debt
Since car title loans are expensive and short-term, it’s sometimes hard for borrowers to repay the loan when the due date comes.
When this happens, lenders will extend the deadline for a fee. This extension is a rollover.
It’s where the total loan amount (principal, interest, and fees) gets “rolled over” for another loan period, where it gets a new interest, plus the rollover fee.
If this happens more than once, borrowers risk the loan amount ballooning quickly and eventually getting stuck in a cycle of debt.
Possibility of Losing Your Car
Of course, we can not discount the very real possibility of losing your car in the worst-case scenario.
If, in the end, you find yourself unable to repay your loans, your title loans lender will take your car and sell it to recover their losses.
If you have more credit than how much your car is sold for, you won’t have to pay your lender for the remaining debt.
But if your total loan amount is less than your car’s value, your lender gets to keep that extra money.
Are you done deciding? Let’s look at what you need to get a title loan in Novi, MI!
What You Need to Apply Online for Car Title Loans, Novi Michigan
We’ve listed the usual requirements of auto title loan lenders in Novi, Michigan, for you!
1) Vehicle Title
Let’s start with the most important document! For your car title to be eligible, it has to be:
- Fully paid
- Clean
- Lien-free
This also means that your car can not be standing as collateral or under any other loan by the time you apply for a car title loan.
2) Government ID
To be eligible to get a title loan, you need to be:
- A U.S. Citizen
- A resident of Novi Michigan
- At least 18 years old
- The SOLE owner of a fully paid car
Your online title loans lender requires a government-issued ID to prove your identity and that you qualify for all the above requirements.
Your ID also has to have a photo of you, and your name as it appears in the ID needs to match your name in the car title.
3) Proof of Income
Lenders of car title loans in Novi, Michigan, will need to see that you have the ability to repay your loan when it is due.
To prove this, you will need to submit proof of sufficient income. Any of these documents will do:
- A bank statement
- Title property
- Proof of inheritance
- Proof of business income
- A recent pay slip
- Proof of retirement benefits
- Proof of social services benefits
- Or any other document that proves you can repay your car title loans
4) Proof of Residency
To prove that you live in Nova Michigan, you can bring your:
- Contract of lease
- Mortgage agreement
- Utility bill
5) A Duplicate of Your Keys
For easy repossession, your car title loans lender will also need a copy of your keys.
6) Other Vehicle Documents
Your lender based in Nova Michigan will also need to see your Vehicle Insurance and Vehicle Registration documents.
If your car registration isn’t currently up to date or your vehicle isn’t insured, your car title loan lenders will be happy to get it for you.
7) Vehicle Photos
Your car title loan lenders will also need to see pictures of your car’s FRONT, BACK, and 2 SIDES.
8) Personal References
This is to prove further your identity and ability to pay off your car title loan later.
Depending on your lender, you will need to submit 1 to 4 personal references written by people who are NOT related to you.
You will also need to provide their cell phone numbers and addresses, so be ready with that information.
How to Apply for Car Title Loans Novi, Michigan
Now let’s look at how the car title loan process works!
Step 1: Find the Best Lender of Auto Title Loans in Novi, Michigan
There are several car title loan lenders in Novi City, so look for the one that has the best offer! Here are a few things that you should look for:
- Low-interest rates
- Low lender fees
- Minimal penalties
- NO hidden fees
- NO pre-payment penalties
- Excellent customer service
- Good reviews from previous customers
Step 2: Get Pre Approved
After settling on your car title loans lender, you can proceed to their website. You will find their online application form on the first page.
Just fill it out and click submit, and a customer service representative will give you a call. They will ask you a few questions, then let you know if you have been pre-approved.
Step 3: Sign Your Title Loans Contract
Next, drive your car to the office of your car title loans lender.
When you get there, your lender will ask you more questions about your title loan application, assess your car, and review your documents.
You will also be given the final approval. Next, your title loan lender will inform you of the following:
- The range of how much cash you can borrow
- Your interest rate
- The additional fees and penalties, if ever
- The repayment schedule
- Your loan term
This is also the part where you negotiate. Car title loan contracts are individually made to tailor to the needs and financial situation of the customers, so every single one is unique.
And because every contract is unique, it also means that the terms in it are FLEXIBLE. So go ahead and negotiate your way into better terms in your favor!
When you’re done with the negotiations, your title pawn lenders will prepare your contract for you to sign the deal.
Before you sign, here are some important reminders:
- Read the FINE PRINT
- Look out for HIDDEN PENALTIES and FEES
- Ask all your questions
- And read your car title loan contract again to ensure you didn’t miss anything.
Step 4: Get Your Money Fast
And now comes the best part of the title loans process!
After signing your title loan contract, you can receive your loan money in any of the following ways:
- Direct deposit to your bank account
- Check
- Cash
- Wire transfer
- Online transfer
- Other common money transfer methods
Tips to Pay Back Your Car Title Loans Novi, Michigan, Fast
Here are a few ways for you to help pay back your loan money:
#1 Take Out Minimal Cash
Since title loans let you borrow against the credit of your car value, the loan amounts provided by your lender will also be big.
We know it’s tempting to take out the maximum loan amount, but we strongly advise against it.
A title loan comes with a very high-interest rate, and you will only have a short time to come up with the repayment money.
So borrow only the cash you need so that you end up with a smaller interest amount and, in the end, a lower debt amount to pay.
#2 Make Early Payments
You might want to put that toward your title loan repayment if you get extra cash ahead of your due date.
You might even beat your due date if you make multiple early payments!
#3 Use a Secondary Vehicle Instead
Do you have a secondary car? You might want to use that as collateral for your title loans instead of your primary ones.
If the worst happens and your lender takes your car to sell, you’ll have peace of mind knowing you still get to keep your primary mode of transportation safe.
Frequently Asked Questions (FAQs) About Secured Car Title Loans in Michigan
Got more questions about cash loans in Novi, Michigan? We’ve got you!
Where Can I Make the Payment on My Title Loans?
You can make your payment the same way you received your loan money: cash, check, through your bank account, or online transfer.
The account is the most recommended payment method for these loans because it is the most secure and convenient way of processing and managing money for the parties involved!
How Much Money Can I Loan From a Title Pawn?
It depends. Your title loan lender will have to estimate the value of your car first.
When you take out a title loan, your car is put up as collateral, and the car value will become your credit. Then you can usually loan around 25% to 50% of your car’s value.
But How Do Lenders Estimate the Value of That Credit?
Your title loan lenders will look at these factors:
- Vehicle year
- Make
- Model
- Mileage
- Overall car condition
- And sometimes, the extras you have installed are also taken into account
What Are Title Loan Funds Usually Used For?
Title loans in Novi, Michigan, are intended primarily for:
- Tuition fees
- Overdue bills
- Hospital bills
- Unexpected business expenses
- Household purposes
- And any other sudden, urgent need for a large number of funds
If I Can’t Pay Off My Title Loans, Will It Affect My Credit Score?
No.
Just like a bad credit score won’t affect your application to get a title loan, not being able to pay it off also won’t affect your credit score.
Think of it this way: Title loans exist outside your credit history. They won’t affect each other in any way.
Do I Need a Bank Account to Take Out a Secured Title Loan?
No.
Unless you opt to receive your cash loans through your personal account, title loan lenders don’t ask for the personal account details of their customers.
To receive the loan money in your personal account in Novi, Michigan, it just needs to be under your name.
Will I Need a Job to Get a Title Loan?
No.
To get a title loan, you will need a steady source of income sufficient to make the one-time payment on your cash loans when the due date comes.
Being employed certainly makes taking out a personal title loan easier, but any other steady and sufficient form of income is enough to get you approved for a title loan.
In Short
Secured title loans can be the perfect solution to your cash emergency, and it’s easy to get a loan if you have a fully paid vehicle.
You get instant approval, their customer service is FAST, and you get your money the SAME DAY!
You can also get a title loan even if you have a bad credit history. And unlike banks, the loan process is SIMPLIFIED and HASSLE-FREE.
But it is also expensive, short-term, and you might lose your vehicle. So exhaust all your other options first, and make sure you have a way to repay your loan before you even take one out!