What are Michigan title loans?
A Michigan title loan is a way of acquiring quick cash by using your car title as collateral for a loan. If you need cash fast, the usual bank loan might not help as the application process is long. Furthermore, you might be denied a loan at financial institutions because of your credit score. Auto title loan providers will not deny cash because of your credit score. As long as you have a clear vehicle title without liens and an almost or completely paid off car, they will approve your loan.
How do car title loans Michigan work?
In Michigan MI, certain laws forbid title loans. There are agencies in the state that will refer you to car title lenders near you. If you qualify, you must drive to a neighboring state to receive your title loan funding. You can also pick your money conveniently from any MoneyGram location.
What is the application process for Michigan car title loans?
Before you get an approval for your loan, you must go through a simple process outlined below:
- You’ll begin the process by filling an online application. You can also call or text the lending agency for a more efficient service.
- The lender will then send you an estimate based on the make and model of your car. Conduct your research on the valuation of your car. You’ll find tools online to perform the assessment. The estimate gives you an idea of the amount you can borrow.
- A loan expert will then contact you to discuss your options. From the expert’s advice, you can select affordable title loans in Michigan.
- The state of Michigan prohibits car title loans. So, you’ll receive your loan from neighboring states of Delaware and Virginia. Representatives from the lender will find the closest loan state for you as per your location.
- You’ll receive information on the nearest state and the local laws. Each state also has a maximum amount you can borrow.
- The lender verifies the condition of the vehicle and verifies the paperwork before releasing funds.
- Upon releasing the funds, the lender keeps a working copy of the car keys and the title. He also places a lien on the title.
How long will it take to get approved for America title loans Michigan MI?
A car title loan is a short-term borrowing solution. Therefore most lenders don’t want to waste your time with tedious processes as time is of the essence. If your application process is devoid of hitches, you should receive your money within 48 hours. You can access the best title loans in Michigan within 30 minutes upon approval. You’ll pick your money from the most convenient location for you. If you cannot travel, the lender can wire the money to your account.
How many car title loans Michigan can you get?
You can get more car title loans Michigan MI if you have more than one vehicle you can use for collateral. For instance, if your family has multiple unique cars, you can get two different title loans. You’ll get loan amounts that correspond to the collateral of the vehicles.
If you only have one car, you can only get one loan because of lien issues. Every lender will only approve a car title with no lien. However, if you are hard-pressed for cash, you can look for a lender that can refinance your current loan. You can find lenders who are willing to refinance your current loan at a lower rate. They’ll then pay off your existing loan.
Can you get online title loans Michigan?
For you to get auto title loans in Michigan MI, you mainly look online. Most of the loan agencies are online because of legal restrictions. On their websites, you’ll get services such as preliminary vehicle valuation. Such agencies also operate multiple Michigan title loans locations where you can get help.
But the nature of the loan application process requires that your car must be valued physically. Therefore, you cannot complete the entire process online. At some point, you must present your car for valuation.
Apart from vehicle valuation and document verification, you do the rest online. Some lenders also allow eWallets and send you money digitally.
Are there additional fees for America title loans Michigan?
When you go for car title loans Michigan, there are additional fees that you’ll incur. Sometimes, the fees can add up to even 25 USD or more. As you calculate the total cost of the loan, you should factor in these additional fees. You’ll incur extra fees in the following ways:
- Some lenders will charge you a lien fee.
If you are in a state that does not regulate title lending you might pay for:
- Origination fees.
- Document fees.
- Key fees.
- Processing fees.
What do you need to get American title loans Michigan MI?
Before applying for American title loans Michigan, ensure that you have all the prerequisites. Having everything beforehand ensures that your loan application is quick.
To qualify for easy title loans Michigan, you must have:
- Proof of ownership – provide the original car title showing sole ownership.
- Personal Identification – present a photo ID (Government-issued ID or Driving License with a name matching that on the title.)
- Proof of residency - provide utility bills or mail from the Government with a name matching the one on the title.
- Vehicle registration – avail a current vehicle registration.
- Insurance – provide proof of vehicle insurance.
- Keys – present working copies of the car keys.
- Proof of income - you might have to present bank statements or paystubs as proof of your capacity to settle the loan.
- References - Names and contacts of two valid references that can support your loan application.
- Attach a GPS device to the car in case you default. Some lenders use devices they can use to disable the vehicle remotely.
Why you would be denied title loans
Most Michigan auto title loan providers are flexible and ask for minimal requirements. Occasionally they reject your loan application. The following are some factors that could contribute to a loan rejection:
- Vehicle value – the lender might reject your application because its value is not enough for a Michigan car title loan. Your car must be valuable enough to act as a suitable guarantee.
- Car title issues – if your car title has a lien on it, the lender will reject your application. If you have no equity on the title, you’ll not be eligible for a car loan.
- Lack of capacity to repay – you must provide proof of income to qualify for car title loans, Michigan MI. Even if your car has value and appropriate title, you must show your ability to repay the loan. Regardless of whether you’re employed, you only need to convince the lender you can make monthly payments.
You should not lose hope if a lender rejects your American title loans Michigan application. You can take the following steps to increase your chances in the next application.
- Evaluate your rejection letter – as per the law; the lender must send every borrower a written notice showing the outcome of their application. The letter will highlight areas you need to work on to stand a better chance next time.
- Wait – it would be best to wait for a better time. There should be a considerable change in your circumstances before you try again. For example, you can wait until your income is stable enough to take care of a loan.
- Consult your loan provider for options – you might find a flexible lender willing to listen to you and work out the best resolution. Sometimes all you’ve got to do is ask for help.
How much do title loans in Michigan costs
Title loans usually more expensive than conventional bank loans. The convenience of quick cash and less stringent requirements comes at a premium. The average annual percentage rate of title loans in Michigan is about 300%. When you break that percentage down to interest rates per month, it comes to an average of 25%.
For instance, if you borrow 1000 USD with a 25% monthly interest, you will return 1,250 USD in a month. This amount excludes any additional fees you might have to pay.
Woe unto you if you cannot pay the loan at the end of the loan term. You must ensure that you borrow the amount you’ll be able to pay only. Don’t borrow the maximum amount you can get on your title if you don’t need that much.
When you fail to pay your current loan, the lender might renew or rollover the loan into a fresh one. The new loan would then add more fees and interest to the sum you owe by now.
Are there Michigan affordable title loans?
You can get access to affordable car title loans in Michigan MI. Before you settle for a lender, do your research to determine the interest rates and additional fees.
How can you pay off your title loans
If you want to pay off your loan there are three options you can consider:
- Pay the remaining balance – if you get enough money, you can clear your loan balance and be debt-free.
- Refinance – if you have a hard time paying your current loan, you can refinance it with another company. The new company will purchase your loan and offer you new and more favorable terms. You should consider this option if you can get lower interest rates. The current lender can also refinance your loan.
- Buyout – in a buyout, two lending companies will strike the deal. Your loan must have a buyout clause for this to happen. The buyout company purchases your loan, not your vehicle. They’ll then offer you new terms.
Which title loan alternatives should you avoid?
Michigan auto title loans could be relatively expensive, but they are efficient. They help you sort out your emergencies quickly. There are other alternatives to title loans that you should avoid at all costs. They include:
- Payday loans – payday loans are like single-payment title loans. The providers require you to pay the total repayment amount, interest, and fees in a month. You can apply for payday loans online or in a store. The reason you should avoid this short-term loan is:
- They have a higher APR compared to title loans.
- You’ll most likely receive lower loan amounts than title loans.
- They are illegal in the US.
- Credit Card Cash advance – you can get a cash advance from your credit card if you have one. These advances attract a higher APR than the usual credit card purchase. You should avoid this alternative because:
- You must have a credit card to access the service.
- There are additional fees in terms of cash advance fees.
- You’ll get lower amounts than with title loans.
- Family and friends – you could have friends and family that are willing to lend you the needed money. You can do a gentleman’s agreement on repayment terms or a legal one. However, such kinds of loans come with challenges like:
- You will become a slave to the lender.
- It might destroy your family relations if you cannot pay.
How can title loans help?
They design Michigan title loans to be short-term financing for emergencies. This option is handy, especially when there is no other alternative available. You can use the proceeds from the loan for emergencies like:
- Hospital bills
- House repairs
Some of the benefits you’ll get from title car loans are:
- Quick access to cash – since it is an emergency, you’ll receive your money quickly.
- Credit checks – the lender will not perform any credit checks. This is usually an impediment for people with poor credit records.
- Relatively cheaper – since it is a secured loan, the lender does not charge high-interest rates than a cash advance.
- You can use your vehicle even after getting the loan – you only give up your vehicle’s title until you repay it.
As you prepare to get your loan, consider the following tips to avoid moving from the frying pan into the fire.
- You should borrow what you need only – even if your car valuation shows that you qualify for more money, avoid the temptation. Only apply for the amount that can solve your current problems.
- Pay your installments on time – to avoid unnecessary pressure, make plans to pay your installments on time. Failure to do so could lead to a bigger problem, as explained earlier.
- Make early repayments if you can – in other collateralized loans, early repayment has consequences. But in Michigan title loans, early repayment is preferred.
If you do not frequently miss your repayments, your lender might be willing to compromise if you have issues. Therefore, do your best not to break the agreement you have with your lender.
You can get some of the best title loan providers in Michigan. These agencies are always there to guide you to get the most affordable title loans Michigan MI. It’s your responsibility not to abuse this opportunity simply because it is easily available.