Title Loans in Louisiana: How to Apply in 2022
Are you living from paycheck to paycheck? If you stumbled upon this article, you probably are.
A small spending mistake can easily tip the delicate balance between having enough budget and having too little.
Thankfully, emergency funding these days NEED NOT come only from saved-up cash. Louisiana residents get to enjoy the instant approval of title loan applications.
Read more about the entire process of Louisiana title loans in the sections below.
Louisiana Car Title Loans
A Louisiana car title loan is a type of loan that allows residents of Louisiana to access FAST CASH FOR LESS TROUBLE.
Title loans in Louisiana have competitive rates and flexible repayment terms. Title pawns are excellent alternatives to traditional cash loans.
The loan funds paid quickly can save you from emergency expenses. The loan approval won't take as long as a traditional bank loan. Moreover, bad credit won't set your loan application back.
You only need a car (and the vehicle title), phone, or internet access, and your Louisiana title loan can begin.
The next sections can help you understand every aspect of title loans. We hope you can pick up a few tips and tricks to help you fast-track your loan application.
What Are Car Title Loans?
A car title loan is a type of loan that can get you quick cash through your car's title. Title loans in Louisiana are called title pawns, pink slip loans, or auto title loans.
Title pawns are known for being quick, efficient, and reliable.
A borrower will temporarily surrender the car's vehicle title to their chosen lender. The lender will hold on to this document until the title loan has been fully repaid. This way, the car's title acts as COLLATERAL
It's a win-win situation for both the borrower and the lender.
If you run away from your debt, lenders will have something to hold on to. On the other hand, borrowers can take out a loan without sacrificing their car.
You can still drive it even during the duration of the loan process.
Here are the different characteristics of a title loan. This helps set them apart from other loans.
1) Legal Loan
A title loan, first and foremost, is 100% legal. You don't have to worry about getting a loan that can harm you more than it can help.
Although a Louisiana title loan is legal, you'll still have to be careful when availing of this loan. Ensure that your lender has all the legal requirements to operate in your place.
Any loan you plan to get must be legal. But, this is not only to avoid being scammed.
A legal loan is covered by STATE LAWS. This means it is regulated, carefully enforced, and protected. State laws help AVOID predatory lending. Borrowers are protected from any lender who wishes to take advantage of your desperate need for more money.
Here are some other benefits of loans covered by the law:
- Interest rate caps are set
- Competitive interest rates
- Free of unjust fees
- Legitimacy of contracts
2) Short-term Loan
An auto title loan is a type of short-term loan. In layman's terms, it's a loan that you'll have to REPAY FAST.
How is this relevant for you as the borrower?
Short-term loans have to be repaid within weeks or months after the loan approval and release. They're the best way to pay up some unexpected expenses. However, they're not as helpful if you need money due to unemployment or bankruptcy.
If you're more familiar with traditional bank loans, you're probably more comfortable with monthly payments for your loan. This is not how it works for title loans.
Title loans in Louisiana are typically repaid on a DAILY or WEEKLY BASIS.
3) Secured Loan
Affordable title loans are collateral-based. You temporarily surrender something you own (in this case, the car title) during the loan process. This type of loan is called a SECURED LOAN.
Collateral does not only prevent borrowers from running away from their debt. Here are some other benefits you can get from collateral-based or secured loans:
- Lenders get to take fewer risks
- Borrowers are NOT charged extravagant rates
- Higher security and reliability for both parties
On the flip side, an unsecured loan is notorious for extremely high-interest rates.
Because lenders do not take in collateral as assurance when giving the loan money, they are more susceptible to permanently losing their money. To combat the risk they take, they INFLATE THE INTEREST RATES.
4) Same-Day Loan
Title loan services are beneficial in a lot of different ways.
But, perhaps the MOST APPEALING to clients in need is the fast title loan process. Many title loan companies can release your title loan within the same day.
The short process makes it possible to get all the loan steps done within a business day. The (almost) instant approval makes it the perfect choice for emergency funding needs.
Not every single title loan in Louisiana is released within one business day.
But, you can be sure to receive it faster than most other loans. These are the reasons why
- Credit checks are done fast
- Car inspections are quick
- Some business-owned title loan companies offer 24-hour services
The Good, The Bad, and Everything in Between
Before you apply online for a car title loan, ensure you know the advantages and disadvantages.
Avoid going blind, or else you might get into deeper trouble. If not, you could still be wasting valuable time.
The Benefits of Auto Title Loans in Louisiana
Louisiana title loans are POPULAR for a reason. It's not a secret that title loans boast many advantages you probably won't find in other loan types.
These are what we love about car title loans:
- You can get your cash loan fast
- The process is quick and fuss-free
- The loan terms are flexible and inclusive
- There is no vehicle requisition involved
- The payment plan is affordable and realistic
- Your credit history will not hurt your application
The Downsides of Louisiana Title Loans
Title loans have already helped tons of people in need of quick funding. But, as the saying goes, not everything good is good for you.
A title loan in Louisiana is just the same. Online title loans are fast and simple, but they are not for every borrower. It's not a "one size fits all" situation when money is on the line.
Know how title loans can be the wrong choice for you and your needs. Avoid regrets when you can.
- Title loans have competitive interest rates, but they are still high
- Title loans are expensive and hard to repay
- A credit check will still be done
- There's a chance that you will lose access to your car
- Not all vehicles qualify for title loans in Louisiana
These disadvantages DO NOT AUTOMATICALLY MEAN that you shouldn't get title loans. What's important is knowing how to deal with the risks that come with it.
How to Secure a Title Loan in Louisiana
A title loan in Louisiana won't require you to go through a long list of steps just to get the emergency cash you need.
Frankly, all you need to do is submit some documents and claim your cash. Various title loan services offer 24/7 assistance through superior customer service representatives.
To apply for a title loan in Louisiana like a pro, follow these steps in the next sections.
Preparing for a Louisiana Car Title Loan
The key to anything successful is being prepared.
We know it sounds cliche, but it is true. The great thing is that you're halfway done through this step by reading this article. Now, you'll only need to breeze through the next few steps.
1) Looking at Title Loan Companies in Louisiana
After completing thorough research on loans in Louisiana, the next step is to identify the "Who." It's important to realize theimportance of choosing the right title loan company.
The best lender can spell the difference between a title loan that is helpful and effective and one that is not.
Your lenders are responsible for life-changing credit decisions. DON’T JUST RUSH into the nearest title loan company near you.
Inquire, compare, and choose the right one for you and your needs.
What is different between various lenders?
- How your credit information is handled
- How high-interest rates are
- How fast funds are released
- How long the loan duration will be
2) Requirements, Documents, and Details
Now that we've identified the "Who," we can proceed to the "What."
Let's make this part straightforward. Tick every requirement in this list before you apply for a title loan in Louisiana.
- Valid (government-issued) ID
- Permanent address in Louisiana (or Proof of residence)
- Proof of an open bank account
- Certificate of employment
- Character references
- Credit history
A valid ID is important in checking the legitimacy of your identity. But, lenders also use it to check that you are at the right age for title loans.
Borrowers younger than 18 are NOT ALLOWED to apply for pink slip loans.
On the other hand, bank account and employment details are crucial in a lender's assessment of your ability to pay back the money you owe. Your credit history is important in confirming that you don't have an outstanding title loan.
You can only apply for one title loan at a time.
- Vehicle and vehicle title
- Car insurance
- Vehicle Identification Number
- Odometer details
- Pictures of all angles of the car
Lenders need to check your car's documents to ensure you qualify for title loans. Your pink slip should prove that you are the sole owner of your car. Otherwise, you will not be allowed to apply.
PRO TIP: Not all vehicles qualify for title loans. Make sure to inquire first.
Getting Your Auto Title Loan
Are you done with the preparation? You'll know you're done with your title loan preparation once you get pre-approved.
The instant pre-approval filters out unqualified applicants and streamlines the whole title loans process.
After all, there's no use going through the next steps if you'll eventually be disqualified.
The pre-approval is simple but extremely crucial.
The Title Loan Online Application Form and Avenues
Lenders will usually ask for your online application form after the pre-approval step. But, take note that some can also require the form before you can be pre-approved.
The application form is a way for a borrower to express written consent to apply for the loan officially. Online application forms contain the following details:
- Personal information
- Car details (Vehicle year, mileage, model)
You can apply for title loans through many different avenues.
You can apply online or through a phone call. You can also choose to go to your lender's office physically. But, applying online or through call can get you pre-approved faster.
Loan Amount and Fees
How much money title loans can offer depends more on you than on the lender.
In Louisiana, residents can get a loan amount of as low as $100 or as high as $50000.
If you noticed, the range is a little bit broad, this is because the loan amount is affected by your car's market value and your credit history.
The main basis of the loan amount is the CAR’S EQUITY.
It can sound technical if you're not familiar with title loans. But it's really simple. The higher the value of your car, the higher the cash loans lenders can offer you.
Credit checks then come into play once the basic value is computed.
Bad credit WILL NOT STOP YOU from getting title loans. However, the best deal is usually given to those with good credit.
Your loan does not comprise only the principal amount and the title loan interest rates. ADDITIONAL FEES may also increase your debt. Some of these fees can, however, be avoided.
Be vigilant and check that your deal does not come in with too many extra fees.
Funding Approval and Release
The final approval of your Louisiana title loans is almost 100% depending on your loan contract.
Most lenders offer competitive rates. But, if you do not agree with the interest rates your lender charges, YOU CAN ALWAYS NEGOTIATE the terms. This is not the time to be shy about getting better deals.
What comes after the final loan approval? Direct deposit of your cash!
Congratulations on having reached this step of the title loans process. Just remember that THE PROCESS DOES NOT END HERE.
Completing Your Auto Title Loan
You've finished the majority of the whole process. However, there's more to be done!
Spending Your Loan: Purpose of Title Loans
Making sure you get to repay your loan is extremely important.
The first step in repaying your loan is to spend it wisely. At this step, you can pause to decide where you will use the money.
Smaller cash amounts can be used for minor house repairs, utility bills, or even unexpected school and work fees. The smaller the money, the faster it evaporates into thin air. But, it is also EASIER TO REPAY.
Modest and larger amounts, on the other hand, can be used for medical bills, accidents, house renovations, or tuition fee payments.
Now that we've used the borrowed money, it's time to face the difficult part.
Living paycheck to paycheck can make it difficult to have enough cash for loan repayment. But, make sure to prioritize your debt if you can. Set aside a small amount every day or every week.
It's difficult, but it will save you from the hassle of losing your car (and increasing your debt).
Failure to repay your debt does not immediately cause vehicle requisition.
You will be given a 30 to 45-day allowance to gather the money you owe. None of the consequences for nonpayment shall be carried out within this period. After the period as mentioned earlier, you will PERMANENTLY LOSE ACCESS TO YOUR VEHICLE.
The cliche phrase "When it rains, it pours" applies surprisingly to positive and negative experiences. When it comes to expenses and financial responsibilities, though, it couldn't be any more true.
There seem to be endless reasons why we run out of money even if we spend them diligently.
Some events are simply out of our control, such as natural calamities, accidents, medical emergencies, and emergency house repairs. But, even if we take those out of the equation, everyday expenses are hard to catch up to.
Title loan lenders in Louisiana understand that.
If you fail to pay your loan back in time, you can ask your lender for a 30-day extension. Most lenders will agree to this.
It's a good perk if you need extra time to pool some cash. But, it will also COST YOU MORE. Letting it get to this point is probably not the best idea.
Are Title Loans Still Not For You? Here Are Your Alternatives
There are many reasons why title loans might not be for you.
The downsides may be too significant for you, or the risks might be too high. It's also possible that you do not have all the requirements and, therefore, cannot qualify.
That is why it is always important to EXPLORE ALL LOAN CASH OPTIONS.
Some of the possible loan types include personal loans and payday loans.
A personal loan is a lump sum debt you can get from a bank, a credit union, or another lender. Personal loans are the classic monthly-paid debt that has withstood the test of time. This type of loan is known for:
- Lower interest rates
- Crucial credit check (Bad credit matters)
- Fixed APR
- Inexpensive loan type
Personal loans may or may not require collateral. It depends on the specific lender and the terms of the actual loan.
Low-interest loans like this are suitable for long-term cash flow problems. But, you'd have to remember the weight a credit check holds in a personal loan. You might have to settle for more expensive loans with poor credit.
A payday loan is a closer relative of title loans. It is a quick, expensive, and short-term loan.
Payday loans are popular among borrowers with bad credit. Even if a credit check is still done, it does not hold as much weight as it would in a personal loan. This gives low-credit borrowers the chance to secure emergency funds.
Here are some of the characteristics of a payday loan:
- Few requirements
- Steep interest rates
- Notorious for additional fees
- Unsecured loan
How To’s of Choosing The Right Loan Type
Choosing the right loan depends on your need, preference, and situation.
The FIRST STEP in identifying the loan type that best suits you is by computing how much money you need to borrow. Doing so decreases your chances of borrowing more than you can pay.
The NEXT STEP is choosing an adequate loan period. Do you need a short-term or a long-term loan?
After matching your need to the available loan periods, you can proceed to the next step. Do you have collateral that you are willing to risk? Are you willing to get an unsecured loan?
At the same time, it is also important to identify how much interest rate you can tolerate.
Frequently Asked Questions
Check the following questions to help guide your financial decisions.
Can I Trust Auto Title Loans?
Title loans are 100% legal in Louisiana and can therefore be trusted.
If you are skeptical, you can always ask your lenders for their proof of business. Aside from their license to operate, online reviews of title loans can also help increase your confidence in title loans.
Can I Apply For Car Title Loans With Incomplete Requirements?
Some requirements are more important than others. Your application may be denied if we deal with core requirements, such as the pink slip and identification documents.
Always consult with your lender to help solve incomplete requirements problems.
Will an Inquiry About Car Title Loans Hurt My Credit?
Inquiring about title loans will not hurt your credit score. There are no buts and no ifs.
Title loans are VERY FORGIVING, and the inquiry cost is nearly nothing. That's why you shouldn't be shy to explore all your options before committing to a final lender, offer, or deal.
How Can I Get Better Offers For My Title Loans?
There are many ways you can try to score a better deal.
One possible option you can try is by comparing different lenders and checking to see where you will benefit the most. Another option you should consider is by practicing your negotiation skills.
But, the real solid way to get a better deal is by maintaining (at least) a good credit score.
Being temporarily in the red gives us physical, emotional, and mental exhaustion.
It is tiring, scary, and sometimes even downright embarrassing.
Residents of Louisiana can rest easy knowing that title loans can cover some unwanted everyday expenses.
We hope we taught you how you could best secure your chances in Louisiana title loans.
Title loans have helped millions of people. Maybe, it's your turn today. Good luck!