Car title loans are a type of secured loan that uses your vehicle as collateral. They are often used as a last resort for those who need quick cash and do not qualify for traditional loans. If you live in Louisiana, you may be wondering what you need to know about getting a car title loan in the state. In this article, we will provide you with all the information you need to make an informed decision about getting a car title loan in Louisiana.
Understanding Car Title Loans in Louisiana
Car title loans in Louisiana are governed by state law, which sets limits on the amount of the loan and the interest rate that can be charged. The maximum loan amount is $700, and the maximum interest rate that can be charged is 18% per month. This means that if you borrow $700, you will have to pay back $856 over 30 days.
When you take out a car title loan, you will be required to give the lender the title to your vehicle. The lender will then hold onto the title until the loan is paid off. If you are unable to pay off the loan, the lender has the right to repossess your vehicle and sell it to repay the loan.
Qualifying for a Car Title Loan in Louisiana
To qualify for a car title loan in Louisiana, you will need to meet the following requirements:
- You must be at least 18 years old
- You must own the vehicle outright
- The vehicle must be in good working condition
- You must have a valid driver’s license and proof of insurance
- You must have a steady source of income
Applying for a Car Title Loan in Louisiana
When applying for a car title loan in Louisiana, you will need to provide the lender with the following information:
- The title to your vehicle
- A valid driver’s license
- Proof of insurance
- Proof of income
- A copy of your vehicle registration
Repaying Your Car Title Loan
When repaying your car title loan, it is important to make sure that you can afford the monthly payments. If you are unable to make the payments, the lender has the right to repossess your vehicle and sell it to repay the loan.
It’s important to remember that car title loans are short-term, high-interest loans and should only be used as a last resort. Before getting a car title loan, you should consider other options such as borrowing from friends or family, or applying for a personal loan from a bank or credit union.
Car title loans in Louisiana can provide you with quick cash when you need it, but they also come with high interest rates and the risk of losing your vehicle if you are unable to repay the loan. Before getting a car title loan, it is important to understand the rules and regulations in Louisiana and make sure that you can afford the monthly payments. If you have any questions, it is best to contact the lender directly.
Louisiana Title Loans
Using the equity that you have in your car to get the cash you need is straightforward, for you to qualify you will need to have a vehicle that has the required equity.
You can go to the Kelly Blue Book, to see what is the wholesale value of your vehicle, as that is what the lenders will advance on your vehicle. They typically will give you from 50% to 805 of your wholesale value.
If your vehicle has the equity in it, then you will need to be able to show that you have the monthly income to support the loan. This can be done with your bank statements or your pay stubs.
You will also need to have your name on the title of your vehicle, as your title will be used as the collateral to secure the loan. The lender will add their name to the title as the lien holder, so that they will have security on the loan.
Choosing The Right Car Title Loan Company
There are many different car title loan companies in Louisiana, and it can be difficult to know what is the right one for you.
The biggest problem with title loans is the interest rates that they charge, so it is important that you find the one with the lowest rate.
You will need to shop around and get quotes from different lenders, you will find that the rates will vary a lot from lender to lender.
Also, the amount of money that each lender will offer you, will also vary, some will not give you the maximum amount of money.
Car Title Loan Brokers
This process can be very difficult, and time consuming, but it is vital that you take your time on selecting the right company, with the right terms.
Some terms from title loan companies will have additional fees, early termination fees, and other hidden fees.
The easiest way to avoid this, can be to use a car title loan broker, they work the same way are insurance brokers, they have a list of all the lenders, and will select the right lender for you.
The title loan broker will know who is offering the best terms, and the most money, as lenders will change their guidelines from week to week.
General Guidelines For Title loans in Louisiana
Most lenders will all ask for the same items, so it is important to be ready to submit them to get the money as soon as possible.
Here is a list of the general items that you will need:
- A vehicle with the equity value.
- Your name on the car title.
- Proof of income.
- Your proof of residence.
- Photos of your vehicle.
- A photo of your odometer reading.
- Five personal references.
- Drivers license