Loan based on collateral
People also ask
What are the title loan regulations in Texas?
Before we get into title loan regulations in Texas, let鈥檚 briefly break down how title loans work. A title loan is simply a loan where the borrower鈥檚 car serves as collateral, securing the loan. This means that loan approval and the amount the lender approves the borrower for all depend on that car鈥檚 value.
What is a title loan and how does it work?
A title loan is a loan based on collateral, your car鈥檚 title in the case of an auto title loan. Auto title loans are popular because they depend on the value of a vehicle, not a borrower鈥檚 income or credit score. They鈥檙e also typically quick to obtain and for relatively small amounts, usually about $1,000.
Are Texas title loans easy and fast cash?
Advertised as easy and fast cash, a Texas title loan could actually drive you into a desert of debt and leave you there without a car. The nearly 236,000 Texans who took out auto title loans in 2019 were charged more than $522 million in fees, according to the Texas Office of Consumer Credit Commissioner.
What happens to the car title when you pay off a loan?
During the term of the loan, the lender will keep the car title, and then give it back once the loan is paid off. All title loan borrowers must be at least 18 years old.