What is the Importance of Title Loan Laws in Texas?
Borrowers that need fast cash to cover an emergency tend to choose loans as a financial resource. Yet, most unsecured loans are challenging to obtain! It may be difficult to acquire money if you don’t have a good credit score or financial background. But don’t feel hopeless. There might be a better solution available in Texas that can offer more convenient and flexible application processes. Unlike unsecured loans, a title loan could offer a flexible approval process-even if your financial background isn’t perfect.
Fortunately, when you apply for an auto title loan, you could get money in no time if you qualify!
Before you get a title loan, it’s important to know that laws are in place to protect borrowers from financial harm. Those laws can determine your loan experience once a title loan lender approves you for funding. But are car title loan laws the same in every state? Not at all! Every state works differently regarding auto title loans and lending laws. If you’re looking to obtain one in Texas, it’d be good to know your local title loan laws.
Learn more about title loan laws in Texas by contacting your lender or calling your local Department of Motor Vehicles(DMV).
What Exactly are the Car Title Loan Laws in Texas?
To apply for title loans in Texas, there are a few requirements. These requirements are a reflection of the title loan laws in Texas.
- Have a Vehicle with Enough Positive Equity
- The Ability to Support Auto Title Loan Payments Each Month
- Borrowers Must Be 18 Years of Age or Older to Apply
Don’t forget that you can apply for a title loan using a car title as collateral. Title loan lenders base eligibility on the available equity in your vehicle and your current income level. That means if you want a considerable loan amount, you must have a significant quantity of equity in your vehicle and you must have the income to justify it. However, individual states set different laws regarding lending amounts. In the case of Texas, you can get a title loan for whatever amount you and your title loan lender agree on. But depending on how your lender is registered in the state, they may have a restriction of charging up to 10% interest on your loan. Regardless of the interest rate, your title loan lender must disclose how much you’d repay in interest before you accept.
Texas laws don’t limit the fees a lender can charge, but a title loan lender must also disclose the number of fees you’d get. Additionally, lenders should also disclose the name, address, and telephone number of the Office of Consumer Credit Commissioner’s consumer helpline. Texas also requires lenders to give you all the information regarding your title loan upfront, which means that what you see is what you get.
What Do Auto Title Loan Laws in Texas Say About Vehicle Repossession?
Life can be full of surprises that are tough to prepare for. For example, a sudden job loss can devastate your financial situation and leave you unable to make your title loan payments on time. Borrowers in these challenging situations can opt to renew their car title loans, refinance them, or default on their payments. If they default on the loan and do nothing to fix this problem, a title loan lender has the legal right to repossess their car. However, the results from that differ from each state across the country. In Texas, once a lender repossesses your vehicle, they will try to sell it to repay your debt. But as soon as they set a sale date, a lender should give you a ten-day notice.
In addition, title loan lenders must give you the new loan balance you’ll have to pay to redeem your car. Be aware that the new balance will include the additional costs of repossessing your vehicle and preparing it for sale.
Speak with your title loan provider if you’re facing repayment issues. They could offer a new payment plan or a longer repayment period to cover your loan installment. Just make sure you call before you default!
How Can I Apply for a Title Loan in Texas?
Car title loan laws in Texas can help you determine whether you’d want a title loan or not. If you do, simply choose a title loan lender that works for you and follow the steps to apply for one. You could see your cash in no time if you qualify!
Your financial safety is important, so don’t hesitate to ask your provider any questions you may have about title loans! Once you feel comfortable, you could proceed to obtain emergency funding.