Car Title Loans In Alabama With Fast Hassle Free Cash
Are you dealing with a situation where you need to borrow more than a thousand dollars? It’s hard to get quick cash these days especially if you have bad credit or have missed payments on previous loans. Banks and credit unions are typically only going to approve applicants with perfect credit and that leaves little few options for people who would otherwise qualify.
If you have a vehicle that’s fully paid off you may want to consider an Alabama title loan company. These types of title pawn loans have a quick application process and you don’t need much to apply online. When you take out a title pawn loan, you’re using the available collateral from a vehicle to back up the money you borrow. To borrow cash using your vehicle’s title, all you need is a copy of your car’s pink slip that shows you are the sole owner and there are no subsequent liens or loans showing on the title. The car’s title is the main requirement to get approved for vehicle title pawns and all other requirements are important, but won’t necessarily lead to an instant denial on the same level of not having a paid off vehicle.
Lending Regulations and Requirements In Alabama For Title Loans
Before applying for any type of short term loan in Alabama you’ll want to do some research on potential companies and make sure they’re following the restrictions and regulations that are in place under the Alabama Small Loan Act. These regulations limit title loan lenders to charges of no more than 17.5% per month on the first $500 borrowed and 15% per month for anything over $500 up to and including $1000. Anything above the thousand-dollar mark can be charged an additional 10% per month on the unpaid balance.
These rates may seem high at first, but they are much lower than other types of unsecured loans like payday loans or cash advances which typically come with APRs in the hundreds if not thousands of percent when you factor in compound interest.
As a best practice, you should only ever consider taking out an Alabama title loan if you’re confident that you can repay the entire amount plus any additional fees before it comes due. If not, then you may want to look at other lenders in Mobile and Montgomery. Besides secured loans, there are numerous companies offering personal loans both online and in person in these cities and you may find a better rate or term.
Bad Credit Title Loans In Alabama – How To Qualify
Just because you have bad credit, doesn’t mean you’re automatically disqualified from getting an Alabama title loan. In fact, many companies will work with you even if you have bad credit or no credit at all. The reason being is that these types of loans are secured by the equity value of your vehicle so the lender has a much lower risk when approving your application.
Anyone with bad credit that’s looking for a larger amount of cash than what you could get with a payday lender should consider a bad credit title pawn. These loans can range from a few hundred dollars up to $10,000 in Alabama depending on the value of your vehicle and your ability to repay the loan.
What Else To Know About Title Pawning In Alabama
Did you know that anytime you take out a title pawn in Alabama you should be able to keep driving your vehicle? It used to be that the lender would require you to hand over the car as collateral but that doesn’t work for the borrower on many levels. First, it’s not convenient if you rely on your car to get to work or run errands, and second, it reduces the resale value of the car which in turn lowers the amount of money the lender can recoup if you default on the loan.
To avoid all that, most title loan companies will give you what’s called a “pink slip loan” which allows you to keep driving your vehicle while making payments on the loan. The only caveat is that should you default on the loan, the company can then repossess your vehicle to recoup their losses. Anyone in Alabama that’s facing repossession from their lender because of lack of payment should first reach out and negotiate an alternative payment plan. If that doesn’t work, don’t hesitate to contact Alabama Legal Services to see if they can be of assistance.
Another thing to take note of when considering Alabama title loans is the fact that there is no set loan term. In other words, you’re not locked into a specific repayment period like you would be with a bank loan or even a payday lender. You can choose to repay the entire amount plus fees at any time without penalty or you can make smaller payments over a longer period of time. Just know that the longer it takes to repay the loan, the more interest you will accrue which will end up costing you more money in the long run.
Finally, anyone taking out an Alabama title loan should beware of lenders who try to roll over the balance of your loan after the initial term is up. This means they add on additional fees and extend the due date, essentially trapping you in a never-ending cycle of debt
If you are considering taking out an auto title loan, make sure you read and understand all the financing terms and conditions before signing off on the contract. These secured loans when given to the wrong person can cause trouble and you should only take out a title loan from a lender in Alabama that’s looking out for your best interests.
Apply Now And Get Cash in 24 Hours With A Title Loan In Alabama
To get started, simply fill out our online application form and receive an instant quote. There’s no obligation to take out the loan and you can use the money for any purpose you see fit. So whether you need cash for emergency expenses or you’re looking to consolidate debt, an Alabama title loan could be the right solution for you.