A loan on a car’s title is also known as a pink-slip loan, or pledge or title pledge – is a low-amount, short-term, high-rate loan that uses the lien-free title of your vehicle as a collateral warranty. It is a very expensive form of credit. It is good to know that the option is available when you need money, but it is important to use title loans responsibly as your vehicle is on the line.
To get a car title loan, you give the title of your vehicle to the lender – for example, the title of your car, truck or motorcycle. In addition, you pay a fee to the provider. Generally, you have to repay the loan in 24 to 48 months.
Loans with title to a car can be very expensive. If you cannot repay the money you owe, the lender can keep your vehicle. According to the forbes research car title loans are rising in the US.
How does a title loan on my vehicle work?
You can get a title loan from a car on the internet or in a store. These are the car title loan requirements:
Step 1 –You show the provider:
Your loan application
Proof of insurance
Proof of residence
The title of your car
Your ID card with a photo.
Some providers also require that you give them a copy of your car keys or that you purchase a roadside service plan.
Step 2: If the lender approves your loan, give you the money and keep the title of your car
Step 3: When the repayment date of the loan arrives – usually in 30 days – you pay the lender the amount of money you borrowed – plus a monthly fee.
How much can I get for a title loan on my car?
The amount we can offer you depends on the value of the car and your ability to repay the loan, the minimum amount we offer is $2,500 and the maximum is $50,000.
What is the cost of my credit going to be?
The APR for our MVP Program is 35.99% for all qualifying customers, but can be lower depending on your creditworthiness, collateral, and agreed-upon terms. Loan amounts start at $5,500.00 with a term of 24 to 44 months. Most MVP Program will be charged an administration fee (origination fee) in an amount ranging from $262.00 up to 5% of the amount financed.
How do I compare the costs?
Most loans have an annual percentage rate. The APR is also called the annual percentage rate. The APR tells you how much it costs to borrow money for a year. The APR of loans with title to a car can be very high.
When you get a car title loan, the lender must tell you what the APR is, and the cost of the loan expressed in dollars.
What is an APR?
The APR is based on:
• The amount of money you borrow.
• The finance charge or the monthly interest rate.
• The amount you pay for the charges.
• The time period of the loan.
For a typical MVP Program Car Title Loan of $7,500.00 with a 35.99% APR and a 38-month term, the payment is $333.73 and the total scheduled interest is $4,731.74. The interest on the loan may vary depending upon the timing of the payments made. There is no prepayment penalty. This means that you can pay off your loan at any time without penalty, and you will only be charged interest during the time that you have an outstanding balance. However, the administration fee (origination fee) is not refundable.
What happens if I cannot repay the lender on the established date?
You may not be able to pay the lender on the due date. The lender may allow you to continue with the loan for another 30 days. This is called “extending the term” of the loan. To extend the term of the loan, you will pay another monthly fee.
If you extend the term of your loan several times, you will pay heavy payments of interest. Over time, you may not be able to repay the loan to the lender.
What happens if I can never repay the loan?
If you cannot pay the lender the money you owe, the lender can keep your car. This is called a repossession. The provider can sell your car and keep the money. If the provider stays with your car, you could lose your only means of transportation. It could be harder for you to get to your workplace, school and other places you need to go.
How can I get title loans for cars older than 15 years?
If you have a car that has $3,000 of capital in it, you may be eligible to borrow between 60-90% of the vehicle’s value. Of course, this depends on many different factors like,
– Your personal income
– Your credit history
– Make, model & car mileage
Why choose MVP?
MVP has grown as a company to be able to offer benefits that others cannot: like the most competitive rates and access to an online account where you’re able to access easy information and superior customer support.
We will do everything we can to help you get the money you need in as little time as 2 hours. You will be provided with the necessary funding within a short period of time, and we have implemented a generous and affordable repay policy that allows you to pay the borrowed amount according to your ease.
You can apply for the loan as follow:
– Apply online, we are available 24 hour
– Send the required documents
– Collect your funds
Contact us today to obtain a prequalification for a loan on the title of your car. You will find it easy to work with our staff.
You can also call MVP at 1-877-280-2206 and speak with a representative today.