Title Loans in South Carolina: Complete Guide in 2022
Caught yourself with unexpected expenses? If you own a car, an auto title loan might just be your saving grace!
South Carolina residents can get fast cash through a local lender willing to take a clear vehicle title as collateral for a loan sum at a reasonable interest rate.
Curious how to get started? Check out this quick read on all about auto title loans in South Carolina.
What Are Car Title Loans in South Carolina?
Car title loans are also called title pledges, title pawns, or pink-slip loans. It got its pink slip name because a title loan back in the day was printed in pink in California.
A car title loan is a short-term, high-interest loan. These loans require vehicle titles as security for the borrowed amount. They have terms that last only a few weeks up to 30 days.
South Carolina title lenders will require an inspection of the vehicle to determine how much cash you can get. You can get cash for up to 25% to 50% of your car's equity.
Other lenders may require rigorous credit checks. But most title lenders will still issue a loan approval even if you have bad credit.
Lenders are keener on your ability to pay the loan and interest back. That's why proof of income and bank accounts are often required.
Applying for a loan with a title lender is pretty straightforward. If you have all the documents ready, you can easily get loan proceeds on the same day of application!
How Do Title Loans for South Carolina Residents Work?
You can borrow $300 to $25,000 on a title loan in South Carolina. However, these amounts are still contingent on your area of residence as well as the condition of your car.
If you get your car appraised on the same day of your application, there is a high chance you can get funds within the day or the next business day.
After all your requirements have been successfully submitted and assessed, title lenders will draw the terms and conditions of your loan contract. Make sure to read them before signing thoroughly.
Since you can get money even with bad credit, a title loan is often a high-interest loan to compensate for the convenience, and the bigger risk lenders have to take on.
If you work your way up to a fair credit score, you could get a better deal off of other loans in South Carolina.
If you're unsure how these loan offers work, you can contact a loan agent to help you.
How Does an Auto Title Loan Compare to a Traditional Loan?
The difference between auto title loans and traditional loans lies in their risk.
Title loans carry a higher risk on the lender which explains why they charge high-interest rates. Online lenders also approve loans much faster.
Traditional lenders like banks take more time assessing whether a person can qualify for a loan or not. Hard credit inquiries and a lot of financial documentation are necessary. However, traditional loans offer better interest rates.
Benefits of Car Title Loans
If you've been rejected by other loan offers before, fret not! You just might have your luck with auto title loans. Here are their benefits:
Applying for title loans only requires a few personal details and documents. You can go through the whole title loan process in the comfort of your own home.
You don't even have to go on-site for a car inspection. Clear photos will suffice.
Qualify Even with Bad Credit
Although a credit check will still be necessary, you don't need a perfect credit score to borrow money.
Paying off a car title loan on time can even help you improve your credit scores.
Fast Loan Approvals
Unlike banks or credit unions, online lenders will only take a few hours to finish an approval process.
Online lenders have drastically increased in number these past few years. The business has been competitive. As a borrower, you are sure to find a lender that should suit you.
Continue Driving Your Car
Lenders will only keep your car's title and not the car itself. This means you get the money and get to continue using your vehicle.
The lender will return your original car title when you fully repay the loan and its interest.
What South Carolina Customers Need to Know Before Getting Title Loans
Title loans are made for people who need money to address their financial problems, pay bills, or keep up with emergencies.
Applying for these loans may be simple and easy, but you still have to be wary of higher fees and the risk of losing your car.
Below are important things you need to know before committing to title loans in South Carolina:
Clear Vehicle Title as Collateral
Title lenders require you to have a clear title over your vehicle on collateral. These can be for cars, RVs, trucks, and motorcycles.
This means your car has been fully-paid, free of lien, and is solely owned by you.
Aside from assuring the full payment of your car, lenders will also check proof of registration and car insurance.
Title lenders will keep your car title or even require duplicate keys for the duration of the loan term. However, you get to continue driving your car.
High-Interest Rates and Fees
Fast loans like title loans in South Carolina often have high-interest rates and even charge additional fees.
For example, if you get a title loan for $1,000 payable in 30 days, if a lender charges you 25%, that's an interest of $250. So you will need to pay $1,250 plus added charges at the end of the term.
That is a total annual percentage rate of 300%! This interest rate is much higher than what other types of loans charge.
Ask about the rates and additional fees before signing a contract. With a lot of lenders available, comparing rates is advised.
It is important to be sure you can afford the loan, so you don't fall into a debt trap.
Risk of Repossession
In cases when you fail to pay the total amount on time, a lender can make you a deal and allow you to roll over the auto title loan. However, this means you will pay more charges and interest, making the loan even more expensive than it already is.
If you accept that you are caught in a debt trap and paying more fees will be too costly, the lender will have no choice but to repossess your car.
It is wise to include the payment of loans in your monthly budget. Don't get an auto title loan if you are uncertain you can afford it!
Required Documents for Car Title Loans in South Carolina
If you've got the following documents ready upon application, you can have your money in no time!
To apply for an auto title loan, you must submit your personal and contact information.
This should include your name, phone and mobile number, SSN, and e-mail address. Lenders may needproof of billing or utility bills to match your name on the title to verify this information.
Title loan lenders also need you to submit a government or state-issued photo ID such as your driver's license, passport, or state ID.
Depending on the lender, ADDITIONAL INFORMATION may be required.
Clear Vehicle Title
As this is the security a lender will require, the vehicle title must be free of any lien.
The title must also contain only your name as the sole owner.
Proof of Vehicle Insurance and Registration
For added assurance, some title loan lenders will require you to submit your current vehicle registration and proof of vehicle insurance.
Some lenders may require you to provide duplicate car keys.
If you are applying completely online, you need to submit clear and recent photos of all four angles of your vehicle.
If the lending company prefers a physical inspection, choosing a lender close to your residence is best for convenience.
Proof of Income
Proof of income will help lenders determine whether or not you have the money to repay the loan.
You can submit pay stubs, pink slips, tax returns, or bank statements as proof.
You don't have to be fully employed. Any form of income or regular monthly deposit to your checking account, like a pension fund, is acceptable.
Proof of South Carolina Residence
Of course, to apply for South Carolina title loans, you have to live in South Carolina!
Proof of residence can be a billing statement or correspondence.
A lender will usually check whether it is active within the past 60 days. If there are no recurring deposits, they might question your income.
Some title loan lending companies ask for at least two references with their names, addresses, and phone numbers. These can be personal, professional, or both.
Steps to Apply for Car Title Loans in South Carolina
Check out these simple steps to apply for a car title loan in South Carolina:
Step 1: Fill Out an Online Application Form
We've got good news if you don't want to brace the traffic and fill out a ton of paperwork. You can apply in the comforts of your own home!
Once you have decided on a car title loan company, fill out their application form from their website.
If you have inquiries about their rates, you may contact them through their toll-free number or email. A loan agent will be happy to attend to your needs and inquiries!
Step 2: Submit Your Documents
Prepare all the requirements we listed above for a quick evaluation.
If you apply online, you will need to supply updated car photos.
However, some lenders may insist on subjecting the car to a physical inspection on-site.
Step 3: Get Approval and Receive Cash
After submitting the requirements, all you have to do is wait to get approved. Once a contract is in place, read the terms and conditions thoroughly before signing.
You can finish the whole process and have the money on the next business day.
Step 4: Repay the Auto Title Loan
Make sure you pay back the loan amount plus interest and fees within the agreed term. Repaying your loan on time is very important so you will not fall into a debt trap!
Frequently Asked Questions (FAQs)
If you have more questions about the topic, here is the most frequently asked questions article section!
Can I Get a Car Title Loan with No Credit Check in South Carolina?
Every licensed lender will conduct some form of credit inquiry. It may not be as rigid as what a traditional loan will call for.
Lenders will assess whether a borrower has existing loans, current income, and expenses. This information will help determine whether you can make a payment on time, eventually, drawing the terms of the loan.
Even with bad credit, you can still be eligible for a title loan in South Carolina.
How Much Cash Can You Borrow with a Title Loan in South Carolina?
For a borrower to access the cash they need, their vehicle value must be determined.
The minimum and maximum amounts you can get from a title loan depending on the lender's assessment of your car's equity and ability to repay the loan.
Factors used to determine the resale value of your car include its age, condition, make, model, and mileage.
Additional accessories on your car might increase its value. However, an old car with high mileage may not get you much money to loan.
If you need cash fast, title loans may be a good solution. You can easily receive the proceeds of your loan on the next business day!
But do remember that these incur a much higher interest rate than your traditional bank loans would offer.
Before signing any agreement, promise yourself to deliver every payment on time! Besides, this can help improve your credit score. So the next you need a loan, you can get better interest rates and more flexible loan terms.