If you’re in a bind and need cash fast, a car title loan in Cleveland may be the right solution for you. Car title loans are available to borrowers with bad or no credit, and they can provide you with the cash you need in as little as 24 hours. Most people who own a vehicle can borrow up to $15,000 and the main requirement is a vehicle that’s in good condition. Here’s what you need to know about getting a car title loan in Cleveland, Ohio.
To get a car title loan in Cleveland, you’ll need to have a vehicle that is paid off or has substantial equity. To clarify, the car title has to be in your name with no current loans or liens that are attached to the title. That way you can keep driving the car and only hand off the pink slip as collateral to the lender. You’ll also need to have a valid driver’s license and proof of income. The income requirement is typically around $1,500 per month, but this may vary depending on the lender. Most companies in Ohio will be just fine with your income if you can show monthly pay stubs or other documents which show enough cash coming in each month to afford the expected payments.
The amount of cash you can borrow with title loans in Cleveland will depend on the value of your vehicle. The average loan amount is between $500 and $15,000, but some lenders may be willing to lend more depending on your needs. In general, you’ll be able to borrow up to 50% of the wholesale value of your car or truck. So if your car is valued at $10,000 based on current resale amounts, you could potentially qualify for an auto title loan worth $5,000.
Interest rates for online title loans in Cleveland are typically much higher than traditional loans from banks or credit unions. That’s because title loans are considered high-risk by lenders and most personal loan companies would otherwise pass on normal financing offers.
Rates for a title loan can often be near 100% and sometimes higher. The payoff term is also much shorter than a typical bank loan, so you’ll need to be prepared to pay off the entire amount plus interest and fees within 6 months to a year. In some cases, you may be able to extend the payoff term by a month or two, but this will likely come with additional fees.
Most car title loan companies in Cleveland won’t even check your credit score when you first apply online. That’s because your vehicle is used as collateral for the loan, so the title lender isn’t taking on as much risk as they would with an unsecured personal loan.
While your credit score won’t be a deciding factor in whether or not you’re approved that doesn’t mean a lender won’t look at your past credit history. Some things they look for when underwriting how title loans work can include bankruptcies, foreclosures, and repossessions. If you have any of these items listed on your credit report it could still be possible to get a Cleveland title loan, but the interest rate and loan amount may be smaller as a result.
Once you’re approved for an auto title loan in Cleveland, you’ll need to sign the loan documents and hand over the title to your car as collateral. The lender will then give you the cash that you’ve borrowed and you can use it for whatever you need. Most companies will also require some type of inspection of the car to check for damage and other problems that could affect the resale value. These inspections typically take place at inspection stations anywhere in Cuyahoga County and sometimes the lender can dispatch a representative out to your house or place of work.
Just remember that the title to your vehicle is now being held by the lender until you repay the entire loan plus interest and fees. If you’re not able to make the payments as agreed, the title lender can repossess your car and sell it at auction to recoup their losses. So it’s important that you only borrow what you’re confident you can repay in full within the specified timeframe.
Now that you know a little more about title loans and how they work for people in Ohio, it’s time to apply for one! While the cost of living continues to increase in Cleveland, the amount of cash available to borrow from a short term lender isn’t always enough. That’s why it may be an option to use a vehicle as collateral for a loan.
Use the online form on this page to get started and we’ll match you with a title loan company in Cuyahoga County based on the value of your car, your income, and other factors. We work with some of the largest title loan companies in Ohio so you can be sure you’re getting the best deal available. And because we’re completely free to use there’s no risk in applying today!