Question: Do Title Loan Companies Keep Your Title?

Are title loans a bad idea?

The danger with car title loans is that they’re very expensive and have such a short repayment window.

If you can’t repay the loan, rolling it over means racking up more fees and interest.

That makes it even harder to repay the loan, a vicious cycle that could end up with you losing your car..

How can I get out of a title loan without losing my car?

Here are some ideas on what you can do to avoid losing your car because of your title loan.Renegotiate Your Terms. … Get a Salary Advance to Pay Off the Loan in Full. … Sell Some Property or Valuables. … Raise Money Quickly. … Get a Credit Card Advance. … Get a Personal Loan With a Lower APR That You Can Pay in Installments.More items…•

Can title loan garnish wages?

The lender will likely pursue the matter in court and seek a judgment for the amount owed. With a judgment, the lender could request a wage garnishment (if allowed in your state), garnish a bank account or place a lien on any real property. Title loans tend to be short term and are regulated by state laws.

What happens if TitleMax repo your car?

As long as you are within 30 days of your missed payment, you can pay off the pawn and get your car back. After that, TitleMax may work with you, but the title pawn would have the right to just keep the car.

What happens if you sell a car with a title loan?

Once you’ve paid off the title loan, you’ll be able to sell your car without any concerns about who owns the title. … After the loan is paid, you can list the car for how much the loan was worth to get your money back or a little more if you want to make a profit off of your car.

How long does it take to get your title back from a title loan?

15-30 daysDepending on state laws, paper titles are generally mailed and electronic titles and/or liens are released to the motor vehicle agency approximately 10 business days after the payoff is received. Allow 15-30 days for receipt of your title based on mail time and/or motor vehicle agency process.

What happens if you don’t pay your title loan?

If you can’t pay off the loan in the typical 30‑day period, the lender may offer to “roll over” the loan into a new loan. But the roll over process always adds fees and interest to the amount you originally borrowed. … If you don’t pay what you owe, the lender may decide to repossess your vehicle.

Can I get a copy of my car title if I have a title loan?

Many lenders possess the title during the entire length of the car loan. Once you pay off the loan, the lender removes its name from the title. You then receive a copy of the title.

Is it smart to get a title loan?

As long as you can show that you have a reliable source of income and a car worth more than the loan you are requesting, the lender will typically approve your loan application. Car title loans are also an excellent option for borrowers who need their money immediately.

How much of a title loan can I get?

How much can you borrow with a title loan? You can 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.

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.

Can I get a title loan without proof of income?

The good news is, yes, you can get a title loan without a job or even proof of income! That’s one of the great things about this option. The only thing they require is your title (proof that you own your car).

Can title loan companies repo cars?

It is important to note that a title loan company may also repossess a vehicle without a court order if it has a valid lien covering the vehicle. Title loan companies also require borrowers to pledge their vehicles as collateral for loans.

Can you go to jail for a title loan?

The lender has to avoid running afoul of the state repossession laws. Most importantly, you cannot be arrested for default when you borrow against your vehicle equity. You cannot face prosecution for not repaying your car title loan. The lender only has the power to take possession of your vehicle.

What happens if you total a car with a title loan?

Car Balance Is Still Owed The bottom line: You will still owe the balance and any interest on your title loan. When the insurance company has declared the car totaled, that means there’s no collateral left in the vehicle for your title loan. … The insurance company will again pay your lender first, then you.