To understand how title loans work you must first start with the basics. This type of loan is a borrowed amount of money against the title of your car, traditionally for a short term. You may hear it referred to as having a lien or a secured loan on your car. No matter what term is used, the definition is the same. When you take out a title loan, you are using your vehicle as collateral in case the payments are not made to the lender.
In most cases, to qualify for a title loan you must be the owner of the vehicle with a free and clear title, which means that no payments are owed on the car. A steady source of income and a valid driver’s license/state ID is also required. Some lenders may ask for a credit history or keep your car for the loan term. That is not a Cash Store policy. We know people depend on their cars and it’s not our mission to distract you from your daily routine.
Now that the basics are covered, we can move on to the numbers. For starters, a title loan is determined by the equity value of your vehicle at the time you apply for the loan, which is subject to state regulations. There are a number of factors taken into consideration by a lender to determine how much your car is worth.
One factor taken into account is your car’s current resale value. There are several websites you can visit to get an estimate, but the numbers will most likely vary from one site to another. You can also use online title loan calculators to determine a relative estimate of how much money you can be loaned for your car. Before you sit down to use any of these calculators, make sure you know:
More prestigious brands tend to have higher values and you can typically expect to borrow more money with them as collateral.
Another factor taken into account is the overall condition and history of your car. The ideal situation is that your car is in great condition and has a clean accident report, so the lender will loan you a greater amount of money. New tires or upgraded detail packages may also be taken into account. The interest rate for your loan is set by market rates and key industry regulations, but Cash Store has highly competitive rates to determine how much your car is worth.
Once you have been granted a car title loan follow the contract agreement or you may face additional fees if the loan is not repaid on time. In worst-case scenarios, the car can even be repossessed if the customer does not abide by the contract. Short-term cash services like title loans are meant to fill a temporary financial gap. If you have any questions about how the Cash Store can assist you, stop by or call the location nearest to you.
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*Loan Amount is subject to loan approval. Loan terms and availability may vary by location. Approval rate based on complete applications received across all Cash Store locations. Customers can typically expect to receive loan proceeds in less than 20 minutes; however, processing times may vary.
Loans / Advances are provided based on approved credit. Cottonwood Financial uses a proprietary model to evaluate the creditworthiness of each applicant for credit. Vehicle is subject to evaluation for title/auto equity loans. Please see the Licenses and Rates page for additional product details.
Cottonwood Financial offers consumer credit products that are generally short-term in nature and not intended for long-term borrowing needs. In Texas, Cash Store is a Credit Services Organization and Credit Access Business. Loans are provided by a non-affiliated third-party lender.