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What are Title Loans and How Can They Help You?

What are Title Loans and How Can They Help You?

Do you need cash fast? Do you have credit issues? Title loans can furnish you with the cash you need, as fast as you need it. If you are looking for poor credit loan options, look no further because title loans are simple, and here at Alabama Title Loans you can get cash quickly when you need it.

A title loan is a short-term loan that customers usually take out to cover unexpected bills or costs when a traditional loan is not an option due to poor credit scores. Simply bring in your car title, which will be used as collateral while you pay back your loan, and we can get an application started today for your next title loan.

What Exactly Is a Title Loan?

title loanA title loan is a short-term loan that doesn’t rely on credit rating scores. Title loans are secured on your car or motorcycle title, and the amount that you are able to borrow simply depends on how much your car is worth. We hold your title until the loan is paid back. A title loan is called a title loan simply because your title is what is used to secure your loan.

The process of obtaining a title loan is simple. You can start your application right here on our website, and loan amounts range between 25-50% of your car's value.

You must have a clean title and own your vehicle. This means your vehicle can’t be financed by another lender, if it is, you won’t be eligible for a title loan on that vehicle. Owning your own vehicle outright should give you the ability to access the funds stored in its value, and with a title loan that’s exactly what you’re able to do.

Lastly, to complete the application, you must bring in your vehicle, the title, photo ID, and a spare set of keys if you have them. You do not have to leave your car with us. As long as you continue to make the payments (which can be made in person, online, or automatically deducted), you can continue to drive your vehicle. This means your loan will not prevent you from going to work, school, or wherever else you may need to go.

If you fail to make payments on time, we reserve the right to repossess the vehicle and sell it to recover the value of the loan. This is why it’s important to make payments in full and on time because failure to do so could very well result in you no longer owning a car.

Is Credit Score Affected By a Title Loan?

Usually, a title loan will have no impact on your credit score. This is typically because your credit score has nothing to do with your ability to get a title loan, as your car title is what secures the loan.

For different people, this could be good or bad news. Most lenders do not even run a credit check when processing a title loan, a process that would typically lower your credit score by a few points. Therefore, this benefits the customer, as your loan will have no negative impact on your credit score. However, on the flip side, title loan agencies usually do not report your payments to any of the major credit agencies either. This means that even if you make your payments on time, your credit score will not increase because of that.

Customers typically rely on title loans because their credit scores are not high enough for traditional personal loans. If for some reason you fail to make your payments on time and your vehicle is repossessed, your credit score should not be adversely affected. Due to the fact that the sale of your vehicle will cover the value of the loan, there is no need for us to report delinquency to credit score agencies.

Military Members and Title Loans

If you are a member of any branch of the United States Military, special rules apply to title loan agencies in regards to the stipulations they can place on these loans. On loans of less than six months, the APR cannot be higher than 36%. The lender must also disclose information about the loan costs and your rights as a borrower, and they are not able to stipulate mandatory arbitration in the case of a default.

At Alabama Title Loans, we appreciate people who have served our country and try our best to provide them with excellent rates.

Title Loans Can Help

Tough times fall on everyone, and even the most fiscally responsible person may need quick money at a point in his or her life. Whether it’s to cover tuition fees, purchase new household appliances, or to cover emergency medical bills, a title loan will provide you with the cash you need.

If a few hundred dollars is the difference between you having a home or being on the street, then a title loan is a no-brainer. If you have poor credit, then the only poor credit loan options you may have available to you are car title loans.

If you are in need of a car title loan, come see us today. Alabama Title Loans has locations in both Birmingham, Alabama and Pelham, Alabama and we are looking forward to serving your needs. So if you are in need of some quick cash and own your car, come on in.

We will make sure to give you a better deal than any of our competitors. We believe we offer the best rates around, and our focus is to ensure that our customers get the money they truly need with a repayment schedule they can afford. Providing the most flexible payments with the best customer service in the area is how we’ve managed to stay in business for so long, and we already know that you will have a great title loan experience with us here at Alabama Title Loans.

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5 Ways Title Loans Help You in Times of Need

5 Ways Title Loans Help You in Times of Need

Millions of people all over America find themselves in situations where cash is short. When it comes to supporting yourself or your family, loans are one option to help put food on the table and keep a roof over your head during tough times. But in today’s economic climate, Americans wonder to themselves: what are the best loan options and how can I choose one?

Many loans are given bad reputations among consumers and the media. There are a few reasons for this but much of the reason is that banks like to gatekeep loan options and keep all of the customers coming to them. The media often likes to demonize people who are struggling to make ends meet, something that we strongly disagree with. We work hard to ensure as many people as possible can borrow against collateral they own.

Title loans, payday loans, and similar short-term loans are open to a wider range of people, which means the loan delinquency rate is potentially higher. But to those who successfully manage their repayments, customers of title loans find they’re often saved from difficult times.

Here in Alabama, many people choose title loans as a great way of getting them out of tricky situations in their time of need. Whether you’re in Pelham, Alabama or Birmingham, Alabama Title Loans provides exceptional services for those looking to set up auto title loans.

What exactly can you expect when you apply with us? This article outlines some important points to consider and why it’s perfect in your time of need.

How Does a Title Loan Work?

title loans in alabamaFirst things first, let’s understand the basics of a title loan before moving onto title loan benefits. What is it and how does it work?

A common type of title loan is the auto title loan. If you own a car outright and have no outstanding payments or loans on your vehicle, you can use this asset as collateral. That simply means if you’re borrowing cash, you can sign over the title to a title loan company who will lend around 25% of the vehicle value, and they will keep the car’s title in case you default on your payments.

A very generic example would go like this: you own a car worth $6,000 and sign a contract that hands over the title of the car to the lender. They keep the title as if the car belongs to them, whilst lending you $1,500. Over time, you will pay the $1,500 back to the lender, and once you’ve paid the full amount, they hand the title back to you. If you do not pay them back, they keep the vehicle.

5 Benefits of Title Loans

Alabama Title Loans gets it right when it comes to offering some of the best title loans available in the state. With over two decades of trusted service, many customers have been left satisfied and financially safe with our loans. Here are just a few reasons why you should consider us if you need a helping hand.

Easy to Qualify for

If you’re worried about your credit rating when getting a loan, title loans do away with this excessive worry. There are no credit checks involved with a title loan application, meaning that, so long as you have an auto title that’s outright yours, you’re eligible for an auto title loan! Title loans are often decided on monthly or regular income and a form of identification issued by your state. That makes these forms of loans one of the easiest you can get if your credit rating is something you worry about.

Easy Applications

There’s not a lot of messing around when it comes to title loan applications. With Alabama Title Loans you can easily apply online, and after a vehicle inspection you can have your loan finalized and ready — it’s a piece of cake. Most loans aren’t as easy to apply for and require days if not weeks of processing, or a visit to a lender in person.

Super-Fast Approvals

Worried about not getting your loan in time? Do loan delays drive you nuts? Auto title loans can be approved on the same day with Alabama Title Loans because we know you’re busy and need your money fast. Cutting out the credit rating process also helps speed up this part of the process.

Customer Convenience

Many customers worry that by signing over the title of their vehicle they’re losing it forever. Does the company get to keep my vehicle? At some competitors, this might be the case — but not with Alabama Title Loans.

If you organize a title loan with us, you’ll get to keep your car to drive around in and park on your driveway whilst you’re repaying the loan. Transportation is important to our customers, so letting you keep the vehicle is important to us too. Flexible monthly payments only add to the convenience of requesting a title loan.

An Extremely Useful Loan

A loan like this can be used for so many things. Title loans are quick and can go straight into your bank account, meaning you could use them for:

  • Tuition fees
  • Broken equipment or vital household goods
  • Vehicle repairs
  • Paying important bills like electricity and water — especially if these come out as a direct debit
  • Food and household goods
  • Medicine or medical bills
  • Renewing car tags

With no strings attached, it’s hard not to see why title loans are a favorite kind of loan for many Americans. If this interests you and you’re in the Alabama area, then you can apply with Alabama Title Loans on our website — it’s quick, easy, and free! Just fill out an online title loan information sheet to get started.

Alternatively, if you’d rather visit us in person, you can find our locations and phone number on our website under the Contact Us section. We’re friendly and open to any customers who come our way so don’t be shy!

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1121 Forestdale Blvd
Birmingham, AL 35214
Phone: (205) 791-1954

3553 Pelham Pkwy
Pelham, AL 35124
Phone: (205) 663-7079