How Does A TitleMax Loan Work?

Can you go to jail for not paying title loan?

Many people wonder if they can be prosecuted for defaulting on a car title loan.

The answer is no.

If the borrower defaults on the loan, he or she will have to hand the car title over to the lender..

How can I get out of paying my title loan?

How to Get out of a Title LoanPay off Your Debts Regularly. Simply put, this is the best way to get out of a title loan, albeit not the easiest method since you probably took out the loan because you were in need of money. … Take Out another Loan to Pay off Your Title Loan. … Sell Your Car. … Negotiate with Your Lender. … Default.

What do you need to get a loan from TitleMax?

When applying for a title loan from TitleMax®, you’ll need: Your clear vehicle title. A valid government-issued ID. Other documents that may be required by your state, such as proof of income, proof of residency, or a valid vehicle registration.

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.

Is it hard to get a title loan?

If you own a vehicle outright or owe very little on it, a car title loan — informally known as a “fast auto loan” — can be easy to get. But fast and easy doesn’t necessarily mean good. You’ll pay high fees for this type of loan, and you’ll risk losing your car.

How much can you borrow from TitleMax?

With greater flexibility and our fast application process, our personal loans may be the right solution to pay unexpected expenses quickly. At TitleMax, you can get a personal loan for up to $2,5002,3 in most states. You may have enough money to get by, but need some additional funds for an emergency.

Are title loans a good 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.

Does TitleMax run your credit?

At TitleMax®, a secured auto title loan does not usually require a credit check. All you need is a steady source of income with which you can repay your loan. No matter whether you have poor credit or no credit, you can typically still get a title loan as long as you meet some very easy requirements.

Do I need insurance for a title loan?

Your title loan lender will ask for proof of insurance on your car when you apply for a title loan. … This means that you would be responsible for paying the remaining cost of your title loan yourself and may no longer have your car. Check with your insurance company before you get a title loan.

What happens if you dont pay TitleMax back?

What Happens if You Don’t Pay Your Title Loan? … If you don’t pay your lender, you are therefore defaulting on your loan and this will often result in your car being repossessed. Aside from your car being taken from you, you might even be charged additional fees during the repossession process.

Can title loan garnish wages?

A payday lender can only garnish your wages if it has a court order resulting from a lawsuit against you. If you don’t repay your loan, the payday lender or a debt collector generally can sue you to collect.

What happens if you have a title loan and you wreck your car?

If a collateralized vehicle gets so damaged in an accident that it is declared totaled (which means that it is beyond repair), then the liability insurance company will pay off the auto title loan. … Assuming the borrower wishes to use another car for financing, the lender may simply add the balance to the new loan.

What happens if you default on a TitleMax loan?

A title loan uses your vehicle title as collateral. Defaulting on the loan will often result in the vehicle being repossessed and auctioned to cover the cost of the loan. … It is illegal for you to hide your car so that they can’t find and repossess it.

Do they check your credit for a title loan?

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.