Title Loan Facts Shocking Statistic
Title Loan Facts 2022-2021
- 80% of title loans are due to an extension, or rollover buyout
Title Loan Facts In Depth
Have you been searching for the best online loan to take care of a monetary issue? If so, we’re betting you have come across the type of fast loan known as a title loan, pink slip loan or car registration loan. Title loans are very easy to apply for and receive; in fact, millions of adults took out title loans in 2022-2021. Since then, that number has increased.
A title loan is a great option to consider when you own your car and need a fast loan. Read on to learn six facts concerning title loans.
- You Can Receive Thousands of Dollars – Many consumers apply for title loans because they have a short-term expense that they need to take care of. However, you can actually receive thousands of dollars for your vehicle, depending on the current market value of the vehicle you use as collateral. For example, you may own a vehicle worth $10,000. The lender may offer you a loan worth $8,000 if you qualify. Just remember, many lenders also require that their customers can show a regular source of income as part of the process. Source
- You’ll Keep Your Vehicle – You’ll always keep possession of your vehicle while the title loan is out. The lender will only have you transfer the title of the vehicle you are putting up for collateral, not the actual car. You will get your title back when the total loan is paid off.Source
- Credit Scores Don’t Matter – While this fact sounds too good to actually be true, it’s not. Title loan companies will not run a credit check during the application process. They only want to see that you have a vehicle that can be used as collateral for the loan.
- They are Banned in Some States – Title loan companies do not operate in every state. Several states have made them illegal because consumers often have to pay a lump sum to get the title back. However, as long as you know you can repay the loan on time, title loans can be a lifesaver. Source
- There are Scammers to Watch For – Make sure you properly research the title loan company you are considering before you sign on the dotted line. Scammers can be found everywhere, all of the time. You should completely trust the lending company you work with before you take out a title loan and hand over your title. Source
- Get Paid Within a Few Hours – Depending on the loan company you use, you might receive your cash quicker than you thought. Some customers see their cash within just a couple of hours after they apply. When you are desperate for cash, a title loan can get you the money you need quickly and easily. Source
Title Loan Statistics
The Consumer Financial Protection Bureau compiled a report stating that around 80% of title loans are due to an extension, or rollover, on behalf of the customer. However, as long as you are a responsible consumer and plan properly, you should have no issue repaying the title loan after you take it out. Source
Always take your time and research any company you would like to do business with. Once you find a reputable company, the money you need should be easy to get.