Title Loans in Staunton, Virginia: Everything There Is to Know
Cash advances aren’t easy to get around to. You’ll have to go through an EXTENSIVE loan process to receive some cash.
So if you require money fast, that’s going to be a problem. But, there is a solution to this, and no, it isn’t payday loans, but rather it’s car title loans.
While committing to these loans may be a risky maneuver, it is one of the best ways to receive cash almost immediately!
There are numerous title loan places in Staunton, Virginia, where you can easily use a car title loan service. Continue reading to learn more about title loans!
What Are Car Title Loans?
A car title loan is a short-term loan that a lender offers you, and in exchange, you give your vehicle title as COLLATERAL for the loan amount.
These sorts of loans also go by auto title loans and title pawns.
Upon completing the application form, you and your lender will discuss a certain repayment period.
Once the loan period is over, you will have to settle the cash fast. Most lenders accept direct deposits of cash under the company’s account.
Quick cash comes with a PRICE. If you, the borrower, fail to settle the loan amount, then the lenders can repossess your vehicle.
This is why making payments on time is A MUST. Many lenders will immediately take that as an opportunity to keep your car title and vehicle.
How to Apply for Car Title Loans in Staunton, Virginia
Now that we’ve settled on what car title loans are, it’s time we give you a step-by-step guide on how to APPLY for car title loans in Staunton, Virginia.
Step 1: Fill Out an Application Form
The first thing you have to ACCOMPLISH is the application form. Simply apply online
The application can be accessed online. In the search bar, just look up online title loans in Staunton.
Once you’ve successfully found the best lender for you, you can fill up all the necessary information.
The application only contains questions regarding your basic information.
If you are uncomfortable answering some of the said questions, you can e-mail and discuss this matter with your chosen lender.
Step 2: Processing Period
After accomplishing the simple form, Stauton title lenders will assess if you have included all the NECESSARY loan documents. We’ll be discussing that bit later.
Some lenders may also do a credit check on your credit history during the processing period.
Auto title loans have been known by many not to conduct a credit check. With this said, You AREN’T guaranteed INSTANT APPROVAL.
Although this is true, nowadays, most lenders would like to certify that you have a good history of handling money to repay the loan amount.
Furthermore, to PASS the processing period of auto title loans, you must ensure that your car value can get you the BEST maximum loan amount the lender can offer.
Why? Well, lenders will be using your car’s overall exterior and interior to determine how much cash you’ll receive for the Stauton title loans.
The assessment will not take longer than one business day, so stick around and refresh the page or stay in contact with your lender for any further updates!
Step 3: Receive Instant Cash
Once Staunton title lenders have done the necessary credit checks and have likewise discussed the loan terms on your behalf, they’ll give you the money.
After a business day has passed, you’ll receive the much-needed financial relief you’ve been waiting for.
Under lending laws that Staunton titles must ABIDE BY, lenders are obliged to discuss interest rates, monthly payments, finance charges, and hidden fees or extra fees.
It’s important to be aware of all these before getting into a car title loan. Instant money is great, but you are putting up your vehicle title as collateral.
Better to be safe than sorry! We wouldn’t want you to regret the money you received from the title loan.
Required Documents for a Car Title Loan in Staunton Virginia
Under the loan agreement, listed below are some requirements you need to pass. You are a step closer to instant cash if you have all these!
When applying for a Stauton title loan, you’ll need your vehicle’s title.
Your lender will be looking for this since this is what you’ll be putting up as collateral in exchange for the money.
In addition to this, when applying for an auto title loan, some lenders may want your vehicle’s title to be lien-free.
You need to pay the entire loan amount to receive the title back!
A valid I.D. is another requirement your lender will advise you to bring when applying for title loans. It should preferably be a government-issued I.D.
The details on your valid I.D. should match your car’s vehicle.
In addition to this, you must be 18 years old to avail of title loans in Staunton, Virginia. During a title loan inspection period, one must also be present.
Presenting a VALID ID will tell the lender that their client is a registered and legal person to perform the business in good faith.
Next on the title loan requirements is car insurance. Some states require this but not all do. Since it is mentioned here, Staunton title loans require such.
Since you will NOT be giving up the car to the lender, you must be able to present proper documentation of car insurance.
It’s good to be prepared if you get into an accident or when your car gets damaged due to unforeseen circumstances.
We’ll be listing down some of the types of insurance coverages.
- Liability coverage, which is required in almost every state
- Collision coverage
- Comprehensive coverage
- Medical payments
- Personal injury protection (PIP)
- Underinsured/uninsured motorist coverage
Again, title loan lenders need this because they will be using your actual vehicle as collateral once you fail to make payments.
Proof of Residency
Title loans aren’t available in all states. If you are a resident of Staunton, you can freely avail of title loans.
Furthermore, proof of residency documents CERTIFY that you are in a location that allows the running of a title loan.
This allows certain title loan companies to function properly and accordingly to their location’s laws and regulations.
Some of the documents you can show to your Staunton title loan lender are utility bills, phone bills, house deeds, and the like.
Proof of Income
While the Staunton title loan lenders do not do a credit check, they still have to know whether or not you have the cash to pay for the loan you borrowed.
You can still be retired or out of a job and still apply for a title loan.
What the lenders want to know is if you have any source of income. They need to see where the money is coming from. Some lenders do not conduct an income check.
It is ESSENTIAL to be prepared to show your proof of income, as this allows lenders to know that their client is capable of paying the loan back.
When applying for a title loan, you’ll also need to send references. Some title loan companies include this in their loan terms.
When adding in references, these can either be personal or preferences. A person or two who can help validate your character to the title loan lenders.
Some title loan companies require 3-5 references, so it’s best to check before sending a list out to the loan company.
Some of the information that you SHOULD INCLUDE are the names, phone numbers, and the relation of the references to you.
Why Apply for a Car Title Loan in Staunton Virginia
Staunton title loans are VERY convenient, especially when one needs money ASAP.
There are many other lending options, but loan borrowers are drawn to title loans for these specific reasons. Continuing reading to learn more!
#1 Drive Away With Your Vehicle
Since you are ONLY using your car’s title as collateral for the loan, the lender will not take possession of your car.
Imagine this. Loan companies will credit money into your bank account with a simple car title!
You no longer need to worry about getting to places because you get to KEEP YOUR CAR! Under Virginia laws, your lender can only take your car if you fail to pay back the cash.
#2 Bad Credit is OK
Title loans have also been known to accept bad credit. The reason for this? Well, it’s almost similar to what was mentioned earlier.
Since you are using your vehicle’s title as collateral for the cash loan, your car’s value or rather the equity of your car is more than enough for the title loan lender to approve your loan application.
Your chosen lender would take on the risk of your bad credit history since the exchange in return is BIG.
This is also one of the reasons why title loans are the better alternative since those with low credit scores can easily apply for a cash loan with EASE.
Nowadays, it’s hard to find a lender willing to provide you with a cash advance on the same business day. We’ll get into that on the next reason!
#3 Get Approved During the Same Business Days
All the more reasons to choose title loans! Title loan companies pride themselves on ensuring that you receive the credit on your bank account on the same business day.
Although, it’s important to note that the approval of your application and the assessment of your vehicle play a KEY ROLE in this benefit.
Your lender may take a few minutes to assess the form you have sent forward. With this said, your title loan lender may also tag your form as conditional approval.
Conditional approval means that it is up for review. For example, your loan might be tagged because you’ve brought in an older car.
Usually, the title of an older vehicle (beat up and worn out) doesn’t give out much of a collateral vibe for the lender.
#4 Offers Flexible Payment Methods
Title loans are a great option because of the flexible payment options. As mentioned earlier, a title loan is a short-term loan.
You, as the borrower, have until the end of the month to settle the loan. There is also an option to roll over the loan next month.
If so, then the lender is obliged to discuss the payment options they can offer with you. The lender must also include the interest rate and terms and conditions for the loans.
If you decide to pay back the loan earlier, then there may be some fees that you should look out for. We’ll dive further into this in the next section of the article.
Are Auto Title Loans Available Everywhere?
No, an auto title loan is not available in every state simply because these are not considered LEGAL.
Some states consider this illegal because a title loan is known as predatory lending.
It is known because of its triple-digit APR and other unregulated practices. Even if these are legal in some states, there are still some restrictions that they follow.
Some of the restrictions include regulation of interest rate, period of the agreement, and more. An example of this would be a maximum of 2 months for the loan agreement.
This is to avoid an insane interest rate and other added fees.
Here is a gist of title loan legality in states:
- New Mexico
- South Dakota
The Center for Responsible Lending and the Consumer Federation of America have eyed title loans for quite some time already.
There are debates on whether or not a title loan should be illegal in every state.
This is because you could lose everything and be in a huge debt pile after securing the loan.
Frequently Asked Questions (FAQs)
We’ve listed down some of the commonly asked questions that borrowers, just like you, constantly ask.
If you are from a different state, your title loan company may deal with the said questions differently than a title loan in Staunton.
Will I Receive a Penalty if I Pay Back My Loan Amount Early?
Other title loan companies do not charge you for paying back the cash loan earlier. If possible, you are advised to pay as soon as you can.
We highly suggest that you ask the loan company beforehand if there are any hidden fees. An early payment fee may not cost as much, but it still adds to the amount that you owe.
If the loan company you stumbled upon requires you to pay an extra fee, you should check out other title loan stores.
You can check out Loanmax title loans. They are one of the famous auto title loans in different states!
How Much Can I Receive From Title Loans in Staunton, Virginia?
In general, you can loan 25% up to 50% of the car’s equity value. You can receive a cash advance of 5,000 to 10,000 dollars.
Some loans can be as low as 100 dollars, but your loan amount is supposed to be as high if your car has good equity.
Do NOT expect to receive a good amount of money if your vehicle is old, weak, and damaged.
Does the Car Title Have to Be Under My Name?
When applying for title loans, the vehicle’s title must always be under the lender’s name. Despite these sorts of loans being easy to avail of…
One must abide by some restrictions, and that is not approving one’s loan application if the title of the vehicle isn’t under the said borrower’s name.
You can even apply for more than one title loan! Just make sure that the second title loan is also under your name so you can avail of cash funding.
If there is another person’s name on the vehicle title, you have to apply for a loan.
Furthermore, if the car’s title is not under your name, you can go through a lengthy process to have it transferred if you need cash or try other alternatives.
When Will I Receive My Car Title Back?
You’ll receive your car title back once you pay the credit amount FULLY. Lenders are using this as STRICT collateral.
The title of your car is an official document that proves that you are the owner of the said property.
There is a contract that you’ll sign, which is binding until such day that you pay them back the money you borrowed with the added interest rates.
There is a process to follow when paying back the loans and added interest rates.
You can pay the lender over the counter or transfer the amount onto their company bank account.
Once the credit has been received, the lender will willingly return your vehicle’s title, and you can be on your way!
What are Title Loans, and What are Payday Loans?
There is a notable difference between title loans and payday loans, and we’ll be going into a thorough discussion on what that is.
A title loan offers 30 days, while a payday loan offers 15 days.
A title pawn also holds your vehicle’s title as collateral, while the collateral for payday loans uses your paycheck.
These two have the high-interest rates that they charge the actual amount in common. These are one of the two highest risks loans that one should avoid.
At the end of it all, you can be in an endless cycle of debt with additional hidden fees that you need to settle.
Why NOT Choose Title Loans
If you are in a rut and need fast cash, then title loans are a sure bet, but this should only go on for a short period.
If you continue to roll over the loan, you’ll pay until you’ve lost so much money.
There are many other alternatives you can try to get additional money. These are finding a part-time job, borrowing from relatives, bank loans, social services, etc.
The alternatives we’ve listed for you are cheaper and generally safer than auto title companies.
Why Choose Car Title Loans in Staunton, VA?
With everything that has been laid out for you, we HIGHLY SUGGEST that you refrain from availing of title loans.
The bottom line is that we understand that despite the risks that title loans pose, it would be such a loss to let them pass.
Remember that there are still better options than just taking out a title loan.