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Auto title loan

Understanding Auto Title Loans

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An Auto Title Loan is a relatively easy, convenient and fast way to get money for unexpected expenses or to cover bills when your finances are tight. There aren’t tons of requirements or terms and conditions to remember when you take a title loan, but it’s still important to understand the title loan basics.

UNDERSTANDING AUTO TITLE LOANS

OWN A VEHICLE: Obviously, this is the most important aspect of auto title loans to remember when you consider applying. Moreover, your vehicle should fit in one of the following categories: car, RV, motorcycle, watercraft, trailer, truck, or boat.

You will be asked to provide proof that you are the legal owner of your vehicle. Since title loans don’t have extensive eligibility requirements, your vehicle is a guarantee that you will pay off the money.

BE FAMILIAR WITH YOUR VEHICLE: Not only will you have to be the legal owner of your car but also you need to know the exact equity of it, as well as its make, year, model, and approximate mileage. It is important for the lender to know the year and model of your car because the loan your lender will give you will be based on the equity of your vehicle. Another important thing to keep in mind is that your car must be in a decent condition in order to qualify as collateral for your loan.

RESIDENCY OR CITIZENSHIP: California residents can get fast and easy cash online in as little as 30 minutes. You will have to be citizen or resident in the USA and be at least 18 years old to qualify for an auto title loan.

HOW TO APPLY: You can apply in person, by phone or online. You won’t have to go to a bank and wait for hours. You will be handed your money in cash in approximately 30 minutes!

At Fast Money Loan, we have offices throughout California, so you can meet our representatives in person and they will answer any questions for you. We have locations in Long Beach CA, LA County, Orange County & San Diego County. A qualified loan advisor will assist you throughout the application process.

FEES AND INTEREST: We offer annual percentage rate (APR) as low as 17% with the maximum of 33.42% APR for the Diamond Express Loan. You can pre-pay your loan at any time because we don’t have pre-payment penalty and we don’t oblige you with a minimum payment period. The administration fee, however, is non-refundable and customers will be asked to show a minimum of 620 FICO score. In addition, there might be DMV Lien Transfer fee and a single processing fee.

SHORT-TERM: Unlike other loans that take 5 or even up to 20 years to pay off, our title loans are usually short-term and they are used by people who need fast and easy money for medical emergencies, unexpected personal expenses, or money due for a rent when you know that within the next 30 days you will find the money to pay off your loan.

KEEP DRIVING YOUR CAR: After you have applied for an auto title loan and have received the money in cash, you will be able to keep driving your vehicle.

In order to get auto title loan, however, you will be asked to give the title of your car to the lender until you have paid the full amount of the loan you have taken. This is our security measure to make sure you will pay off the loan.

PAPERWORK: You won’t be asked to provide tons of paperwork and there would be no need to pull your full credit report as long as you show a FICO score of 620. Even if your credit score is low and you have outstanding payments all this won’t affect your application for auto title loan. If you are currently paying off your vehicle, we will still give you a loan and help you pay off your vehicle debt as a bonus to your new loan. Furthermore, you will be granted a loan even if you have recently lost your job but show an ability to repay the loan!

In 2016 the number of people who had taken out personal loans only was roughly 83 million. The top 10 reasons why people take out loans are for tuition fees, business, paying rent, personal expenses, vehicle expenses, consolidate debt, medical expenses and emergencies, bills, moving expenses, and vacations. If you are in urgent need of cash you can use our easy, fast and convenient services!

How to save for a vacation

How to Save for a Vacation

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Are all those Instagram vacation pics making you jealous? The good news is, with the right planning, you can take an amazing vacation.

May be you have already picked your destination and you are ready to pack your stuff and enjoy a few days off work. The only thing that’s left is to find the budget. Vacations are not cheap, and the lack of money is a common reason to postpone it again and again. But sometimes all it takes is some self-discipline and you can save enough for a vacation in no time. Here are a few tips…

How to save for a vacation

Open a Vacation Savings Account

If you get direct deposit at work, you can usually split it between different accounts. Ask your employer to send a percentage of your paycheck to a designated savings account. You likely won’t even miss that money and will have a nice vacation fund in a matter of a few months.

Set aside all of your extra cash

Get in your kitchen, find the biggest jar, grab a Sharpie and write “VACATION” on it. If you have a second job, freelance income or leftover change – put it in the jar. If you happen to get a cash gift from someone – put it in the jar. If you work overtime, take the extra money from your paycheck and…you guessed it – put it in the jar!

Make money selling stuff you no longer need

We all tend to hold on to things way too long. If you have all collectibles collecting dust – you can sell them for really good money. If you have clothes you rarely wear – you can offload it for cash as well. Just about anything you own can be sold to someone. There are Download Decluttr app to sell your old DVD’s or tablets. Sell the old furniture in your garage by using Trove Market or Chairish. To sell the items you don’t need, you can use Letgo, Facebook Sell&Buy groups, eBay, Bookoo, etc. You will be surprised how much money you can earn in no time.

Cut expenses

Instead of paying huge monthly fees for the gym you don’t even visit as often as you originally intended, you can cancel your membership and workout at home or outdoors. Using multiple video streaming services? Choose one and stick with it for a while. Consider canceling cable. A lot of the shows are available through streaming services anyway and you’ll save a ton of money every month. Using apps with monthly fees? Cut them out. Going out to eat or getting a Starbucks every morning? Opt for eating at home – your vacation will be worth it.

Rethink Grocery Shopping

  • Do your groceries once a week so you can keep a better track on the money you spend on food;
  • Buy things in bulk when they are on sale;
  • Shop at your local farmers market – it is cheaper, better for you and you will be doing a good deed by supporting small businesses;
  • Grow or regrow herbs and veggies like salad greens, garlic, cilantro, romaine lettuce, scallions, carrots, celery, basil, bokchoi, and more;
  • Shop after 7 PM because most delis and grocery stores decrease the price of foods with limited shelf life like takeout, bread, meat, etc;
  • Don’t shop on an empty stomach because you will spend a lot more;
  • Have a meal plan so you don’t buy too much food. Overconsumption will add to your weight and take away from your wallet.

Borrow what you’re short

You can start saving money for your vacation right this very moment. But still, it is going to take some time before you have enough to cover for your next road trip, cruise, beach holiday, or visit to a national park. When vacation time rolls around, if you’re still a little short, consider borrowing just enough to cover what you weren’t able to save up. There are plenty of different types of loans, but if you need some money fast, car title loans are the perfect option. You can get money in as little as 15 minutes, there is no credit check, monthly payments are reasonable and you can apply online or in person.

If you are in the Long Beach Area, visit us here at Fast Money Loans for a title loan. California residents have been using us since 1997. We’d love to help you with your cash needs!

defaulting auto title loan

What happens when you default on a title loan

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An auto title loan or a car title loan is one of the easiest and quickest options to get cash when you urgently need it. Processed in less than an hour with little paperwork, the title loan is often preferred as it doesn’t require a credit check or proof of secure income. It is the ideal solution for those who do not qualify for bank loans and can’t count on relatives and friends when they have to pay a bill as soon as possible.

defaulting auto title loan

Getting a car title loan is a straightforward process that can be completed online. All you need as a proof is your ID, a lien-free title of your car (or any other vehicle that you are using as collateral) and a spare set of keys. You get the approval and the cash advance in no more than an hour and you keep driving your car as long as you pay your installments on time.

There is, however, the possibility that for one reason or another you fall behind payments and you default on your auto title loan. So, what are the consequences of that and is it possible to avoid them?

Car repossession and repossession time line

The first unpleasant consequence that you are faced with when defaulting on your title loan is the loss of your car. You can expect forced repossession of your vehicle at a time that you least expect. The lender doesn’t need to notify you before they send someone to take your car unless it is otherwise stipulated in your contract. Therefore, make sure to include the notification if possible. Otherwise, the repossession agent may turn up and seize your car while you are at work, picking up the kids from school or directly from your home at any given time.

You should be aware that according to the Federal Trade Commission the rules governing the car repossession are formulated by each individual state, and thus you can expect different procedures in different states. In some cases, the lender can repossess the car even after one missed payment, while other states require at least several missed payments before this step is implemented. The details on defaulting your title loan will be given in the contract you sign with the lender. You need to read it carefully and ask any questions if you are unsure of something.

Here are a few facts that are valid for car repossession, regardless of your individual contract.

Once the borrower defaults on their car title loan, the lender CAN:

  • seize the vehicle at any time
  • come onto the borrower’s property to seize the vehicle
  • choose not to notify the borrower when the vehicle will be repossessed

There are also several restrictions when it comes to car repossession. The lender CANNOT:

  • Make threats against a borrower or their family
  • Use physical force against a borrower
  • Physically force another property or in other words they cannot open your garage by force to take the car out of there

What happens with the repossessed vehicle?

Once the lender repossesses the vehicle they have to put it to auction and sell it. The money acquired at the auction will be used to cover the borrower’s debt on the title loan. If the vehicle is sold for more money than the amount due, the lender is required to return the differences to the borrower. In addition to that, any personal belongings that were in the car at the time it was seized, should also be returned to the defaulted borrower.

Voluntary Repossession as an option

In some cases, the borrower realizes that repossession is inevitable and therefore they can opt for a voluntary repossession. This means that the borrower goes directly to the lender and agrees to drop off the car. The two parties can agree on a convenient date and place where this can happen. In exchange of the car, the defaulted borrower receives confirmation that all their debt is settled and they won’t be pursued any further. This can save you from some negative penalties and most important the repossession is not recorded in your credit history, while otherwise it stays there for up to fifteen years.

Credit score damage

Defaulting on a car title loan and the subsequent repossession will affect your credit score quite negatively. The default can appear in your credit history for up to fifteen years in some states. The missed payments will also decrease your credit score. A missed payment usually stays in your credit history for about two years.

How to avoid default on your car title loan?

The best way to avoid a default on a car title loan is to plan for your payments in advance. Usually such loans are taken for a shorter period, such as one month with an interest of 25%. So, if you have received $1,000 you will need to return $1,250 at the end of the month. You can also repay only the interest and prolong it for several more months.

Before taking any loan, make sure that your total debt repayment doesn’t exceed 50% of your monthly income. Take into consideration all forms of payments that you need to make – not only on the title loan but on credit cards, rent, etc.

If you are struggling with debt management, in general, you can consult a licensed credit counselor, who will give you tips and can even draw a special debt management plan.

There is also the possibility to approach your lender and renegotiate the terms of your payment plan. At the end of the day, car title loans are meant to help people who need urgent financing in order to get out of trouble and not to worsen their condition. It is an easy and quick way to get cash without much hassle or credit checks. Just be sure to make a solid plan for repaying the loan before you sign the contract.

Need cash fast? Fast Money Loan offers title loans in Long Beach and across California. We offer very fast approval rates and will beat our competitors’ interest.

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