Title Loans in Murphy, TX
Everybody knows that balancing finances is a challenge. If you don't have a loan source to fall back on when you need a bit of assistance, you might be forced to make late payments that can negatively impact your credit over time. This in turn will affect your loan worthiness and put you in a downward spiral financially. Even if you think that you can't get a loan, there is a probably an option out there for you. One great possibilities you should look into is whether or not you can get a title loan.
Title loans in Murphy: All about the process
A title loan is a loan that involves offering your vehicle as collateral. If you own a vehicle, you may be eligible for this type of loan despite negative marks on your credit. You simply have to give your title to the lender throughout the life of the loan.
It all starts with an application that you will need to fill out to completion in order to be considered for a loan. This application will include questions about your identity, your employment status, and most importantly your vehicle. An application for title loans Plano will request the make, model, and mileage of your vehicle. This information will be used to figure out how much your vehicle is worth and therefore how much you're eligible to borrow.
After you finish the application, you send it in and then wait for a response. Lenders of title loans in Murphy will analyze and come to a decision about applications quickly. In the event that a loan is offered, a detailed loan offer will come back with all pertinent details including how much the loan is for and how much it is going to cost.
It's important for borrowers to realize that they cannot get the loan funds until they send in their vehicle title. Once the vehicle title is handed over to the lender, payments begin until the loan is paid back and the borrower gets his or her title back.
Legalities behind title loans in Murphy
Each state makes its own laws about these loans. In Texas, there are some important laws and regulations you need to know about if you want to proceed. First off, there is no limit on the overall amount that a title loan can be made for in Texas. Some states will limit the loan amount for various reasons like to keep loans more affordable or easy to budget for.
Otherwise, there are two limits that the state of Texas does place on these loans. The maximum permitted interest rate on such a loan is 10 percent. Also, the loan term for these loans cannot be any longer than 180 days.
Keep these things in mind
- Loans are secured by the vehicle- A title loans is a type of secured loan. It is secured by collateral which in this case is the vehicle. An unsecured loan in contrast involves no collateral.
- Loans are offered despite liens- You can still get title loans in Murphy even if you owe money on a vehicle loan. The decision in this case will be made regarding whether or not you have enough equity in your vehicle.
- Loans are distinct from payday loans- Title loans in Murphy are considered alternative loan products but they are different from payday loans. They involve using a vehicle as collateral rather than signing over an incoming paycheck.