You’re in a bit of a financial pickle in the Lone Star State and you need cash right away. A bank loan is out of the question, and while you may be able to get a payday loan, you’ll likely have a tough repayment schedule and high interest with which to contend.
Well, if you have a vehicle in your name and a lien-free title, plus sufficient income for repayment, you have a good shot at getting a vehicle title loan. Here’s what you should know about getting the best title loan in Houston.
Just What is a Title Loan?
It’s a short-term loan that’s secured by your vehicle, which is used as collateral. However, the vehicle stays with you during the life of the loan — if you continue making timely payments. If you don’t, the title company can seize and sell your property. The lender will hold onto your vehicle title until the loan is repaid.
The loans are usually for 30 days or less. In Houston, loan terms are capped at 180 days.
Do I Need Good Credit?
Unlike unsecured loans, such as those from banks, your credit score isn’t the focus of title lenders. While some companies might pull your credit, title loans in Houston are very possible even with bad credit.
What are the Requirements?
In the main, you’ll need a car in your name and a clear title. You’ll also need to be at least 18 and have photo identification and proof of Texas residency.
Further, you’ll also need to supply proof (bank statements, pay stubs, etc.) that you have the income to repay the loan. You needn’t be traditionally employed, either. Income such as from a pension or retirement plan, worker’s compensation, or Social Security is also permissible.
In addition, you’ll need to supply the make, model, mileage, and year of the vehicle you seek to collateralize.
You must also submit quality photos of the vehicle’s hood, rear, front, sides, driver-side door, passenger doors, rear, odometer, and vehicle identification number.
How Much Can I Borrow?
It’s up to each lender, as there are no restrictions in Texas on the amount one can borrow. In addition to your income, the lender bases its decision regarding how much it can lend on your vehicle.
Some companies in Houston will offer an online calculator in which you can enter your vehicle’s model year, any surface or cosmetic damage on or in the ride, and the vehicle’s make and model. You will also input the vehicle’s classification (sport, hatchback, etc.), current mileage, overall condition, and any modifications or alterations. You can use the tool to get a lender quote. Only use companies that offer this tool.
How Soon are Funds Available?
Once you apply, you can often get approved the same day. After that happens, you usually can be paid within one business day. Direct deposit is usually possible, so make sure your bank account is duly set up.
Title Loan Seizures in Texas
Texas regulations permit lenders to take possession of your vehicle and sell it if you fall behind on payments or otherwise violate loan terms.
However, you should note that there are several ways in which the state protects borrowers. Those include:
- By the establishment of certain laws regarding repossession
- By permitting borrowers extra repayment time or opportunities for title redemption
- By determining whether the vehicle can, in fact, be sold and what percentage of sale proceeds go to the lender
- By requiring lenders to maintain detailed records of all title loan transactions
- By assessing $1,000 fines to vehicle title companies that violate pertinent state laws
Also, the best title loans in Houston will decrease your payment amount and interest rate if you have a consistent record of on-time payments. Shop around and choose wisely.