Quick Answer: Are Car Title Loans Worth It?

How long do you have to pay back a title loan?

1 year to 3 yearsThe repayment period for a car title loan can be customized to fit your unique needs.

The loan can be paid back anytime early without penalty, but the typical loan is written from 1 year to 3 years depending on the circumstances..

Can you pay off a title loan early?

If you want to pay off a title loan early, you can do so without penalty. Other companies sometimes charge a fee for this, but not TitleMax®. In fact, we encourage early repayment of your loan and don’t charge an extra fee to do so. … We might be able to refinance your loan and give you a lower interest rate.

How much will TitleMax give me for my car?

$10,000At TitleMax, you can get up to $10,000* cash for your title. And, the best part is you get to keep driving your car or motorcycle during the course of the loan/pawn. Personal loans are another solution to any unexpected or emergent financial needs.

What documents are needed for a car title loan?

Documents You’ll NeedOriginal vehicle title showing sole ownership.Government-issued identification matching the name on the title.Utility bill or other proof of residency matching the name on the title.Current vehicle registration.Proof of vehicle insurance.Recent pay stubs or other proof of ability to repay the loan.More items…•

Can you get a title loan on a broken car?

If your car is broken down and needs to get fixed, but you do not have the money to fix it, we can get you a title loan with your cars equity, to get you a car repair loan. … In these situations, it’s great to use a title loan for car repair.

How much do you usually get for a title loan?

How much can you borrow with a title loan? Usually 25% to 50% of the value of the car. According to the FTC, the average loan amount is $100 to $5,500, but some lenders allow you to borrow up to $10,000, and even more. Once you’re approved for a loan, you’ll give the lender the title to your car.

Do title loans hurt your credit?

In most cases, a title loan won’t have any impact on your credit scores. That can be good and bad. For starters, most title lenders don’t run a credit check when you apply. That check, known as a hard inquiry, typically knocks five points or less off your credit score.

Do you need full coverage for a title loan?

Interestingly, most title loan companies do not require car insurance in any state for their purposes or by law. … Nonetheless, you could be asked to provide proof of insurance because the title loan business wants to know you are insured. This is especially true if the loan amount exceeds $1,000 or more.

Are title loans a bad idea?

Auto title loans are a form of predatory lending. … If you’re strapped for cash and you own your car free and clear, an auto title loan might seem like a good way to get some fast cash when you need it. But auto title loans are among the most expensive kinds of credit you can get, along with payday loans and pawnshops.