Auto title loans are designed for certain types of situations in which people often face unexpected financial burdens, such as car repairs, health care fees or housing expenses.
These situations can leave you with the need for cash instantly, but getting a loan from the bank is not always easy. He often needs good credit or a certain amount of income, not to mention the amount of documentation needed.
Many have asked themselves this question “what other loan options do I have left?” You will be pleased to know that you can count on Meza’s auto title loans and everything you need to know you will find in this article.
Auto title loans offer you fast cash, often between $ 100 and $ 10,000, in exchange for the title of your vehicle as collateral. They are a type of secured loan, one backed by a property that the lender can take if he does not pay.
Half of the states in the United States allow some type of auto title loan. But their structure of high rates and annual percentages of 260% or more make them inaccessible for most borrowers. In fact, many end up renewing their loans several times and triggering a cycle of debt.
Although Meza is different, we are the pioneer loan company in auto title loans, so if you decide that you will get a loan of this type, you can rest easy and decide for us.
I need a car title loan
How to Apply for a Car Title Loan? A potential borrower goes to the lender with the car and its title. The lender evaluates the value of the car and offers a loan based on a percentage of that amount. The average loan is $ 1,000, according to our Meza specialists. Borrowers can leave with the money in less than a few hours, but the lender retains its title as collateral until the loan is repaid.
There are two types of car title loans: single payment loans require borrowers to pay in a single payment, usually 30 days later and have an average of 300%. There are also installment loans, which allow borrowers to make multiple payments, usually three to six months, and have an average annual percentage rate of 259%.
A higher payment of the final fees and the remaining principal usually expires at the end of the loan term. These fees often add up to around 25% of the value of the loan; If you took a single payment loan of $ 1,000, you would have to pay $ 1,250 on the due date.
With our auto title loans you will find the best deal and our loan policies are the best, you will be able to get the most out of your vehicle, as our specialists will evaluate your status and be approved, we will review your financial capacity and we will make a payment plan that is convenient for you.
LAWS AND PRACTICES OF LOANS BY TITLE OF AUTO
Laws and practices but vary between states, but are generally the same:
The credit is not verified.
It is not necessary that you require proof of income.
Require that the car be absolute property.
Loans are provided for 40% or less of the value of the automobile.
It may require borrowers to leave a key or install a GPS tracker or a remote immobilizer, all of which makes the cars easier to recover.
You can seize and sell the car, then charge the borrowers fees for recovery and storage. If the car is sold for more than it is owed, some states do not require the lender to reimburse the borrower for the difference.
WHY CAN AUTO TITLE LOANS BE CONSIDERED DANGEROUS?
While their interest rates are lower than those of payday loans, which may have APRs above 1,000%, interest rates on title loans are not low. Typically, the thirty-six percent annual percentage rate is considered the upper “affordable” range. Tariffs and cyclical loans associated with auto title loans make them even more expensive.
And if you can not pay as agreed, you can lose your vehicle. In fact, 20% of those who apply for a short-term single payment auto title loan recover their cars.
Not only is paying a scandalous interest rate, but you also risk losing your car. The recovery rate of these loans is incredibly high, and people lose their jobs because they can not go to work. According to many experts in finance, they assure.
This happens because many people are uninformed and “disarmed” against those loan companies that are like predators in search of prey to cheat and cheat all the time. In Meza, we feel repudiation for those deceptive practices in which we only want to get the most out of the client’s need.
Visit Meza and we, in addition to providing you with the best auto title loans, will give you tips on how to avoid being cheated by other companies.
A DEBT CYCLE
To maintain their vehicles when they can not pay, the vast majority of single-pay loan borrowers renew their car title loans several times, incurring fees each time.
At Meza, we know that only 12% of single payment borrowers reimburse without renewing the loan. One-third of the remaining borrowers renewed their loans seven or more times. For a $ 1,000 loan, that would mean at least $ 1,750 in rates alone. Most of the loans that require a single payment are renewals. What leads to borrowing repeated loans are large payments.
For the average borrower, repaying a car title loan absorbs 50% of the monthly income, so reimbursing that loan in a lump sum payment is unsustainable. Consumers end up taking out another loan to cover their expenses because they can not pay without lending again.
The average borrower of a single payment stays with the loan for five months. Almost half finally paid their loans with an injection of cash as a tax return. For 20%, borrowing money from a family or friend ended up being the way they could pay off their loan.
The situation is also bad for auto title loans in installments. While borrowers can make their payments for several months, 31% end up defaulting on their loans. Eleven percent have their vehicles seized.
The threat of repossession forces borrowers to pay, even though the payments exceed what they can pay. Most borrowers take out auto title loans to cover basic daily expenses, such as medical bills and groceries, but often have to reduce those expenses to repay the loan.
It is a financial tangle in which many of our clients have fallen before working with Meza. But once they have crossed our doors, they can realize how things are and how they can avoid this cycle of debt.
AVOID THE HAZARDS OF AUTOMOBILE TITLE LOANS
Although taking out a short-term title loan may seem like a sensible option, in reality, a consumer should avoid the pitfalls of car title loans by evaluating other options.
Home equity loans are predatory loans and can put the borrower in an endless cycle of debt, assuming a great risk of losing their car, which is often the only way for the borrower to go to work.
To understand how to avoid the dangers of auto title loans, a consumer must have a basic understanding of how such loans work and then take steps to protect themselves if such a loan is necessary or, even better, take steps to avoid such loans altogether.
In Meza, we know that many people prefer to avoid this type of loans to the maximum, but that is due to the bad experiences that they have lived with other lender companies that have only been given the task of making their financial life more difficult and sinking them with debts.
All the people who have worked with us, who have come in need of a loan with bad credit or loan for Latinos and many other types of loans, have found a good solution to their problems with our title loans.
TWO IMPORTANT POINTS ABOUT AUTO TITLE LOANS
The interest rates on auto title loans, which can range from 30% to 300%, is what makes these loans dangerous for the borrower. These high-interest rates can cause an endless cycle of debts for the borrower.
The borrower is often fooled by the small initial fees charged by the car loan company, without understanding the true cost when the APR is added. Renewal periods should also be considered because they can aggravate interest to a point where any payment made by the borrower will only cover interest and will not reduce capital.
Making sure you can repay the loan within a set period, usually, 30 days, will help avoid the compound interest problem. Also, there is a time limit for the time a borrower can continue to make transfers and after approximately six re-investments, the borrower can not only lose his car but can also end up financially at the bottom of the well.
In addition, the borrower should be aware that the auto loan company that will grant the loan will be less than the value of the vehicle with the idea that the auto title loan company sells the car with a benefit if the borrower fails to comply.
These are two critical points about the title loans of a car and should be considered before a borrower obtains a loan with any company. It is advisable that we give to all our clients at Meza. After evaluating your options, most choose to obtain a title loan with us.
OTHER WAYS TO AVOID THE HAZARDS OF AUTOMOTIVE TITLE LOANS
The first action anyone can take to avoid the pitfalls of car title loans is to save as much as possible for future problems. This is the option taken by those who have gone through these financial nightmares that we mentioned earlier.
Saving some cash will allow you to be more flexible in your options and avoid having to take out predatory loans such as auto title loans.
Being aware of the annual percentage rate (APR) is essential because you will have a better idea of the real cost of a car title loan and can make a better decision since the car title loan is affordable or the best option.
Related to being aware of the APR, is the step of obtaining and looking for other options. The idea is to find an alternative that does not jeopardize the only item that you can have to go to work, your car.
Beware of forced arbitration clauses in any auto title loan contract so that any dispute can be handled in a court of law.
In conclusion, taking proactive measures like saving some money when times are bad can help you avoid having to take predatory loans like a car title loan.
However, being educated on some of the key points about how auto title loans work can help the borrower avoid the risks of such loans by being aware of the actual costs and risks involved. And that’s what we want at Meza, safe and armed clients against deceptive lenders.
All of our clients prefer to work with Meza and obtain car title loans with us than with any other predatory company in the market. No matter what type of loan you need, if it’s a loan with bad credit, a loan for Latinos, or whatever, title loans can be very useful.
THINGS YOU NEED TO KNOW ABOUT THE SELF TITLE LOANS
Auto title loans are designed for the types of situations already mentioned above. You can get the quick cash you need, without being forced to sell assets or further compromise your emergency funds. The vehicle’s capital is used to determine if you qualify, as well as the amount you can borrow.
These types of loans have a less rigorous process, are less stressful and are much faster. Loans on securities in some companies can be done online and can be approved in just one day.
When looking for a loan on the title of a car, there are certain factors that you should consider, here we show you some things you should know that will help you get the best loan and not be fooled.
QUALIFYING FOR A TITLE LOAN MAY BE easier THAN YOU THINK
The most important factor to qualify for a title loan is that you must have the car that can be used as collateral. Whether you have a car, motorcycle, RV, SUV or truck, you can qualify for a car title loan.
Because this type of loan is based on the equity of your car, you will be required to purchase your car completely. If you are still paying for your car, then the title still belongs to the bank, and you can not use it as collateral. Other basic requirements to apply for title loans include, reside within the country and be at least 18 years of age.
In Meza, these are essential requirements. We work with minors for obvious reasons.
BAD CREDIT? NO PROBLEM!
Unlike other types of loans, your bad credit should not affect your title loan application. Car title loans generally do not require a credit check. They are designed specifically for people who have damaged credit due to a history of late or missing payments in their registry.
The auto title loans of Meza can be a more viable option to a loan with bad credit. But those loans from other companies in which they do not even evaluate their payment capabilities, are deceptive loans that will have you around the neck until you pay.
IT CAN BE MORE DIFFICULT WITH LOW INCOME, BUT DO NOT BE ANXIETY
To qualify for a car title loan you must also have a source of income. If you have low income, it may be more difficult to qualify, but you will not be exempt simply because of that. In addition, you must not currently be a debtor in a bankruptcy case or you currently intend to voluntarily submit a bankruptcy application.
At Meza, we have payment plans for title loans from clients with low budgets.
YOUR AUTO IS GUARANTEE OF YOUR TITLE LOAN.
If you decide to get a car title loan, you must put your car as collateral. This means that you allow a lender to place a lien on the title of your car and temporarily deliver the hard copy of the vehicle title, in exchange for the loan amount.
This is the only way in which a lender has some kind of guarantee that the loan you provide will give you some type of refund. Without the automobile title on the line, it can be very difficult to find a short-term loan.
It is also another essential requirement of the auto title loans of Meza.
YOU CAN OBTAIN A LARGE AMOUNT OF CASH TO COVER YOUR NEEDS
The value of your car is the main factor in determining how much you can get from a title loan. The title loan company determines the value by quickly assessing the status of your car, as well as its age, make and model.
In general, your car has to be worth no less than $ 2000. There are many tips on how to increase the value of your car before disbursing it for financial help. In some cases the amounts of the loans can be between $ 2,600 and $ 25,000.
At Meza, our specialists evaluate every detail of your vehicle before giving us “green light” with the auto title loan. Our specialists take into account the smallest detail so you can get the most out of the value of your vehicle.
YOU CAN CONTINUE HANDLING YOUR CAR
When you get a car title loan you are not selling your car or delivering your vehicle to the lender. You can continue to drive your car for the duration of the loan, as long as your payments are made on time. You do not have to worry about getting around and traveling to work when you get a car title loan.
That’s the Meza policy, our car title loans do not keep your vehicle stored anywhere out of reach.
IF YOU CAN NOT PAY YOUR TITLE LOAN ON TIME, DO NOT ENTER IN PANIC
Securing your car against a loan is not without risks. If you can not pay the loan, you will lose the title of the car and it will be from the lender. But, if you think you can not reach an agreement on time, try to negotiate with your lender.
Although you can set a higher interest rate, often the lender is willing to sit down and discuss the options with you. In general, they are more interested in recovering their money, instead of buying their car and selling it.
Many predatory companies do not make deals with their customers and seize their cars immediately. But Meza prefers to avoid as much as possible seizing your car, our car title loans claim to be more of a solution in your financial life than a financial nightmare.
If you want to learn more about our loans, keep checking our website where you can find offices closest to you, the answers to the most popular questions, and more about our company and our practices.