You’re in a pinch and you need several hundred dollars post haste, but a bank loan is out of the question. You’ve heard from fellow Texans about vehicle title loans, and you wonder: does Houston offer title loans? It does, and here’s what you should know about them.
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Just What is a Title Loan?
A vehicle title loan is a short-term loan that’s secured by your car’s title, which is used as collateral. These loans are regulated at state levels, while each municipality has some separate regulations. At the federal level, the Consumer Bureau for Financial Protection only makes sure that lenders offer title loans to those who can repay. That’s to protect you from predatory lending.
Do I Need Good Credit?
Your scores aren’t even checked, which, if you have poor credit, gives such loans an edge over bank loans. All you basically need is a valid driver’s license and a vehicle in your name, and proof of income.
You’ll also need to provide a vehicle description (make, model, mileage, year, etc.), type of identification presented, and proposed loan amount, plus your full legal name, address, phone number, and date of birth.
Title Loans in Texas
While loan terms are capped at 180 days, there are no restrictions on the amount one can borrow. You’ll need to be a Texas resident and have a lien-free title and a steady income source. You also must be at least 18 and have a valid government-issued photo ID.
Be certain that the lender in which you’re interested is licensed in Texas. The lender must pay an annual fee for such licensing. You for sure want a legit lending company so that if there are problems, your rights will be protected.
Lenders will be fined for false advertising or for selling or charging for any kind of insurance.
Do note, as mentioned, that while all laws and regulations broached are applicable to the entire state, every county or city, including Houston, has its own governing rules. However, local regulations are not allowed to be stricter than those established by the state of Texas. Still, it’s a good idea to check local regulations for Houston before you sign the dotted line.
The entity that controls title loan lenders in Texas and protects consumers’ rights is the Texas Office of Consumer Credit Commissioner. Contact the office with any complaints.
How is the Amount I Can Get Decided?
Title loan companies decide the amount for which you are eligible based on your gross monthly income, your vehicle’s value, how much you’re seeking, and loan terms.
Title Loan Repos in Texas
According to state regulations, you can lose your vehicle if you get behind on payments or, in some other way, violate loan terms. The lender can repossess the automobile, sell it, and use proceeds to cover the defaulted loan.
Note, though, that there are several ways in which the state protects consumers of title loans in Houston regarding repossession:
- By establishing certain laws regarding repossession
- By allowing borrowers additional repayment time or opportunities for title redemption
- By determining whether the vehicle can be sold and what percentage of sale proceeds
- By requiring lenders to keep detailed records regarding all title loan transactions
- By assessing $1,000 fines to lenders who violate pertinent state laws
So, yes, title loans in Houston are in the offing. All you essentially need is a vehicle, a clean title, and demonstrable means of repayment. The best news is that, while you’re repaying the loan, you can still drive your ride. We suggest ChoiceCash for your title loan servicing needs.
