All About How Do Title Loans Work?
Last update: 18 March 2020
How Do Title Loans Work?
If you’d like to know how car title loans work, then read this!
They’re very much like when you pawn something, but what you’re actually doing is using the car title of your vehicle as a guarantee for the loan.
You keep your car to drive!
While making loan payments, the car is yours to keep. The loan lender becomes its legal lienholder, since the lender keeps the car title.
After the loan is fully paid back, the car title is returned to you.
With 5 Star Car Title Loans, How Do Car Title Loans Work?
A. Our Products and Services:
B. What Our Clients Say:
6 Simple Steps to Getting Car Title Loans
With this information about how car title loans work, you can call us and get a free estimate!
If you have additional questions, use the guide that is below for more details concerning how to get a title loans in 6 simple steps. Find out “How does a title loan work”.
Step 1. Requirements
Car Title Loan Requirements
Requirements You DO Need For a Title Loan*:
Your Personal Details
Your Personal Details – Be ready to give us your basic details, such as but not limited to name, email and phone number.
With this, we can offer better customer service and quicker communication during your car title loan process.
Your Car’s Details
Your Car’s Details – How Do You Value a Car for a Title Loan?
Give us the model, year, make and mileage of your private car to appraise the title loan value of the car you’ll be using for collateral with an auto title loan.
For us to find out how much can you get for a title loan and check its condition, send us some photos of the car.
Car Title – Your car title must be lien-free with your name on it to get a title loan. You must be listed as your vehicle’s registered owner on the title.
The car title needs to be under your name to use as collateral. Contact us if you do not have a title – maybe we can help.
You can’t get a title loan without the title, but maybe we can help by transferring the ownership to your name at the DMV, getting your auto registered or obtaining an up to date DMV registration.
Identification – What documents do you need for a title loan?
You will need to show a driver’s license, a state ID, or your international passport.
Show us your ID so we can check if your private details are the same as on all of your documents.
Your documents for identification will help in verifying your identity. According to the California Contract Law, you must be at least 18 and be a California resident.
Regular Income – For us to fund your loan, we need proof that you have the ability to pay the title loan.
We will check that you have a way to pay the loan off. This can be from your regular paycheck, an ongoing business or benefits. Show us proof such as a bank statement, social security payments or a job pay stub.
References – You will need to provide three personal references.
Include their names, relationships, phone numbers and addresses for all references.
If you don’t have everything needed, call us for help!
Disclaimer: There is a chance you’ll need to show additional documents, according to your situation. When you finalize the loan details, be sure to inquire as to what is required, because it can vary according to your precise loan terms.
Requirements that You MAY Need for Title Loans:
Car Insurance – We need proof that you carry auto insurance with full coverage for loans more than $5,000. It is, however, suggested for all types of loans.
Here is what you DON'T Need for Title Loans:
Bank account – Don’t worry if you have a bank account or not.
We can simply supply you with a MoneyGram reference number. Use it to collect the cash from their various locations.
Perfect Credit Rating
Perfect Credit Rating – Some people wonder, “Do title loans go on your credit?” or maybe “Do title loans affect your credit score?”
No, you do not need to have a good credit rating for approval of a title loan.
Credit scores are not one of the loan criteria from 5 Star Car Title Loans.
In fact, we don’t need to run your credit score check, which means you can apply with poor credit or no credit.
Title Loans Requirements Are Compatible with Applicants Having a Bad Credit Score
It’s important that you are clear about the requirements as well as what you need for a title loan to be approved.
Car title loans requirements are suitable for applicants with a bad credit score or no credit at all.
Don’t worry if you can’t fulfill one or two of our title loan requirements. We try our best to be flexible so that everyone’s situation can be met.
Don’t despair! Contact us now to learn what you need to do to get a title loan approved.
Step 2. Application
3 Ways You Can Apply for Car Title Loans:
1. Call Us:
Simply call us at: (323) 870 9511.
We will help you with finding the required information, including how much you can get on a car title loan, how to get a title loan, how car title loans work and more.
2. Visit one of our branches:
Find the closest 5 Star Car Title loans Branch and visit one of the title loans branches. Get to know the staff and they will help you with the steps through the auto title loan application process.
3. An online Application:
Apply online in 4 Easy Steps:
Enter Your Car's Details:
Your Personal Information:
Address, Date of Birth and SSN:
Upload Photos of Your Vehicle:
Online Title Loans in 4 Simple Steps - How it Works:
Submit some simple information to see how much money you qualify for:
- Your name
- Phone number
- Vehicle information
- Date of birth
- Social Security Number
Once pre-approved, you can use our mobile app to complete your application:
- Photos of your vehicle
- A copy of your Driver license
- A copy of your Car title
Receive your loan offer
Once we receive the above information, one of our loan specialists will provide you with the loan offer and terms which you qualify for.
They are experts who can answer any question and address any concern you may have.
Finalize the loan and get the money!
Finally*, you will need to drop off the title at any FedEx location so it can be shipped to us.
We will provide you with a shipping label, free of charge to you. Once the title is sent, we will transfer the funds to your debit or prepaid card
*Under certain cases, you will be asked to stop by one of our GPS Centers so a tracking device can be installed onto your vehicle, completely free of charge to you.
Step 3. Approval
Title Loan Value of My Car
Once you’ve applied, sent in the requirements, we’ll evaluate your vehicle’s condition by checking its general condition.
This is only one of the factors determining the loan limit, which begins at $2,600 and goes to $20,000. The final approval for your auto title loan is your car’s worth as well as the title loan value of your car.
How Do You Value a Car for a Title Loan?
You can estimate how much your car is currently worth by looking it up in the Kelly Blue Book.
A few of the points we consider when determining the title loan value of the car you’re using as collateral for an auto title loan are listed below:
The Car's Equity
Car’s Equity – When using a car’s value for loan purposes, it needs to have equity. The amount that is between the value of a vehicle and what you still owe on car payments is the equity. Regarding its monetary value, equity is the amount of the vehicle that you really own.
For instance, you could appraise your car according to the Kelley Blue Book, and the value of your car is set at $35,500. That figure is based on the car’s condition, make, model and style.
If you owe $10,000 to the lender, then the lender could charge $250 as a payout fee. That leaves $25,250 worth of equity in your car.
$35,500 (its value) minus $10,000 (payments due) minus $250 (payout fee) = $25,250
A car with equity simple means that its value is greater than the amount due on it. We can sometimes process an auto equity loan even if people still have payments remaining on their cars. It depends on the value of the equity, but we would finish paying off the current loan amount and add that money to your auto title loan contract.
Vehicle’s Condition – We take into account your car’s condition and mileage as well as wear and tear. We look for dents in the body, cracked glass, scrapes, scratches and broken lights.
The value of other cars of the same model, year and make are not always equal to the value of your specific car. That’s why we check each request specifically.
Title Loans Ranging from 25% to 120% of the Car’s Value
We strive to get the real liquidated value of the vehicle, so we can take it as collateral. Our goal is to offer a fair loan, without taking into account which type of car you own.
5 Star Car Title Loans provides loans that range between 25% and 120% of a vehicle’s value, depending on your ability to repay the loan and your credit history.
Step 4. Loan Funding
Get Your Title Loan’s Money - Three Simple Ways
Accept our conditions and loan terms and you can usually get your money within 5 hours*.
With 5 Star Car Title Loans, here are some of the general ways** you can get your title loan’s money:
GPS Installation on Title Loans
A GPS tracking instrument will be installed in your vehicle, because you are using your car as collateral against a title loan.
The GPS gives us extra loan security. Installation, which is fast, can be performed at any one of the GPS Installation Centers or at one of our locations.
How to Check the Balance on Your Car Loan
While paying back the loan, you can check our online customer portal to see and print payment and transaction details and make your title loan payments online.
Online Customer Portal Examples:
*After the application process is complete and the Underwriting Department has reviewed it, you may be given a conditional offer.
Funding time is dependent upon the availability of 5 Star Car Title Loans offices and time necessary to complete your loan process. After loan approval, the typical funding time ranges between 3 and 5 hours.
**Ask our clerks to find out the options available to you for your situation.
Step 5. Repayments
Car Title Loans Interest Rate
5 Star Car Title Loans provides manageable and competitive title loan interest rates that reduce worries regarding prepayment fees or hidden costs.
The title loan APR can be from 60% until 175%. Those are loan interest rates for customers that qualify and fulfill our credit requirements.
Repaying Your Car Title Loans
See below just one example showing the types of APR ranges on our loans’ interest rates. Use $2,600 as the loan amount for comparison between the two illustrations.
This comparison chart can help with understanding our title loans interest rate range and our title loans repayment programs:
Examples of 36 Month Loans*:
|Examples||Example A||Example B|
|Title Loan Amount||$2,600.00||$2,600.00|
|Interest Rate (monthly)||10.01%||9.21%|
|Term Length||36 Mo.||36 Mo.|
|DMV Lien Transfer Fee||$15.00||$15.00|
|Monthly Payment Amount||$269.00||$250.00|
* Our repayment schedules don’t have prepayment penalties or hidden fees.
Disclosure: Not very application is approved. Approval depends on certain underwriting criteria as well as the borrower’s ability to pay. There can be additional loan restrictions.
Payment Methods of Title Loans
Our average loans are usually paid for in five – eight months. After signing the loan contract, the first payment is due 30 days later.
Payments can be made online, by phone, through a cashier’s check or personal check by mail or at a 7-Eleven store.
Below is a list of 5 Star Car Title Loans methods of payment:
1. Payments by Phone
Payments by Phone – Give us a call at (323) 870 9511, and have your credit or debit card open and ready. One of our agents will help you with your loan payment process.
2. Title Loans Online Payments
There is no need to own an account. Give us a call and we’ll help you make online payments.
1. Put your email address as your username.
2. Use the password you were given on the day your loan began. We can help you renew it if needed.
Click here to Log into your account and make a payment
3. Title Loans with Cash Payments
You can conveniently make cash payments by visiting a 7-Eleven store located near you.
4. Paying Title Loans by Check or Money Order
Checks and money orders can be sent to us at:
5 Star Car Title Loans
2216 E Colorado Blvd
Pasadena, CA 91107
*Please remember to write your loan number on your check or money order.
Step 6. Loan Closure
How to Get Your Title Returned?
Loan closure is your last step. If you’ve paid in accordance with your title loan contract, your last payment will close your loan.
Even if you pay off your title loan early, you can still receive your car title without penalties or extra fees.
If you intend to pay it off early, check the final amount for payoff with us. We will make sure that your final payment will close your loan completely, so you won’t pay extra interest charges.
Returning the Car Title
We will send back your title, without a lien, when you finish paying back the loan. There are times where we might send a document of lien-release rather than a clean title.
How Do Car Title Loans Work?
Use our comprehensive guide How Do Car Title Loans Work to get all the information needed to feel good about your loan decision.
Do you want to apply for car title loans but have questions?
Check out our Frequently Asked Questions about How Title Loans Work. You can also call us for any questions regarding what is a car title loan, what do you need for a title loan, how do title loans work and more.
Frequently Asked Questions:
A. How Much Can I Get for a Title Loan?
The most you can get is $20,000.
We suggest that you take out a loan amount that is sufficient for your needs and that you will be able to repay.
B. Can You Have Two Title Loans at the Same Time?
It is not possible to have two title loans on the same car.
You can only have one lien per vehicle title. A title cannot have two lienholders under any circumstance.
C. Can I Get a Title Loan Without the Title?
To qualify for title loans, you must have a lien-free car title in your name.
You must be the owner of the car’s title. The car title must be in your name for it to be used as collateral. If you don’t have the title, we might be able to help you get a duplicate title.
D. Can You Get Title Loans with a Salvaged Title?
Sure! You can get title loans with a salvaged title.
If your vehicle is salvaged, 5 Star Car Title Loans may still be able to use it for a title loan. Get in touch with our agents to find out if you can get a title loan on your salvaged car.
E. Can I Get a Title Loan if I am Still Making Car Payments?
Often times, we can aid in paying off an auto in a way that you also have money left over.
This explains how you can still get an auto title loan even if you are still making payments on your car. Get in touch with us to learn about more ways of getting an auto title loan while still making payments on your car.