We know how stressful it can be to be stuck in a cycle of debt due to high interest loans. That's why we're dedicated to helping our clients avoid these loans and their predatory interest rates. We offer a variety of loan options to fit your financial situation without putting you in further financial strain. From personal loans to debt consolidation loans, we've got you covered. We use a straightforward and transparent process that makes it simple to apply and be approved for a loan. Contact us today to see how we can help you get back on track.
We at MLDA Invest co are committed to helping Nevada residents get out from under the burden of high-interest loans offered by predatory lenders. Our loans are affordable, transparent, and designed to give you the support you need. Unlike traditional lenders, we don’t charge any hidden fees or penalties. Our loan packages include flexible repayment plans and provide you with the financial relief necessary to get your life back on track. Contact us today to learn more about our services and how we can help you reach your financial goals.
Why you should avoid Auto Title Loan
What Is A Title Loan
A title loan is a secured loan where the borrower puts up their vehicle as collateral in exchange for cash. To put it simply, you can get quick cash by using your car as a safety deposit. However, there are many risks that you need to consider before taking out a title loan.
How Do Title Loans Work?
Car title loans are a way for you to borrow money by using your car as a promise to pay it back. Here is a breakdown of what a title loan consists of:
1. Vehicle Title: This is a piece of paper that proves you own the vehicle. So when you take out a title loan, you are putting up this piece of paper as collateral. If you fail to pay the loan, the lender would be able to repossess your vehicle by using this piece of paper.
2. Loan Amount: This is the amount of money that the lender lets you borrow.
3. Collateral: You can think of collateral as a safety net for the lender. In this case, collateral would be the title to your car.
4. Repayment: You will have to pay back the amount you borrowed plus interest.
5. Interest: This is the extra money you have to pay on top of what you borrowed. It’s basically a fee that you have to pay in order to borrow money, which also protects the lender and allows them to operate. It’s important to keep in mind however, that interest rates can vary drastically by state and be extremely high.
6. Time Period: This is how long you have to pay back the loan.
So to summarize, you can apply for a title loan by using your car as collateral. Typically, you will have to own your car outright and have no liens on the title. You may be able to get a title loan for a financed car, but this will vary by lender. If you’re approved, you will work with the lender to determine your loan terms. Usually a title loan is paid back within 30 days. If you fail to make the payment on time, there are options to extend the loan or your vehicle can be repossessed.
How Much Cash Can You Get With a Title Loan?
The amount you can borrow with a title loan is anywhere from 25-50% of the value of your car. So if your car is worth $20,000, you might be able to take out a loan from $5,000 – $10,000. You can find out the value of your car using the Kelley Blue Book Calculator. Title loans can range as low as $500 to as high as $20,000+.
What Are The Fees On A Title Loan?
Lenders charge you a monthly fee on top of the loan amount. This amount varies by lender, but on average is around a monthly fee of 25%. So for example:
· You decide to borrow $2,000
· The monthly fee is 25%
· $2,000 x 25% = $500
· The amount you owe after one month: $2,500
You should make sure to ask what the monthly fee is before taking out a title loan. That way you will know exactly how much you need in order to pay the loan back in full. If you don’t pay the loan back in full, nearly all title loan lenders will allow you to continue making payments after 30 days.
When Should You Get a Title Loan?
Title loans exist because traditional ways of borrowing money might not be available to many potential borrowers. Some might not have good credit scores to get approved for a personal loan, or need something more than a smaller payday loan. You should only get a title loan if you have exhausted other options available to you that offer a lower interest rate like a personal loan. There are many lenders that offer personal loans online that can give you the cash you need as soon as the following business day.
Pros and Cons of Title Loans
One of the biggest advantages to taking out a title loan is that most lenders will not check your credit. Unlike personal loans, where poor credit will oftentimes disqualify you from a loan, title loan lenders only look at the value of your car. That being said, title loans come with extremely high interest rates if you extract out the APR from the monthly fee. You should only take out a title loan as a short-term solution and seek to pay the loan back in full within the repayment period if possible.
Title Loan Laws
Title loans also known as car title loans or auto title loans, are thought to have originated in the early 1990s. They began as an adaptation of the pawnbroking model that has been in existence for centuries, where personal property is used as collateral for a short-term loan. The idea was to allow borrowers to use their vehicle title as security while retaining physical possession of the car, unlike traditional pawn loans where the pawnbroker holds onto the collateral.
​
How Title Loan Laws Evolve Over Time
Title loans often come with a tapestry of colorful regulations that reflect a state’s stance on consumer protection and lending practices. For example, in some states, such as Illinois, title loans are capped at $4,000, regardless of the value of the car, to protect consumers from borrowing more than they can afford to repay. On the other hand, in states like Mississippi, title loans can charge interest rates that reach into triple digits, often leading to a cycle of debt. Meanwhile, in Montana, title loans are completely banned, showcasing a direct legislative approach to consumer protection. These disparate approaches provide a fascinating glimpse into how differently states can perceive and regulate the same financial product.
