Title Loans in Allentown, Pennsylvania from Loan Cheetah
Throughout the Lehigh Valley, many people are looking for a way to cover unexpected, short-term expenses that have placed significant financial stress on themselves and their family members. Though the Lehigh Valley has begun recovering from decades of job losses and economic hardships, many people in Allentown and the surrounding cities in this region need a helping hand to get ahead of their monthly expenses, move past unexpected monthly shortfalls, and deal with emergency expenses like medical bills. That's where a title loan comes in.
Title loans offer Allentown borrowers the ability to cover their expenses almost immediately, with a short-term repayment period that minimizes debt and lets borrowers move on from a stressful moment in their lives. Before applying for such a loan, however, borrowers should familiarize themselves, with benefits, regulations, and application requirements that pertain to this particular financial resource.
Title Loans in Allentown: What Are They?
So, what is a title loan? This question is the first and most common thing that most people ask when they begin reviewing their options for a short-term loan. Though they may not be the most widely known form of loan, title loans in Allentown function in a way that makes them easier to obtain, with quicker approval and funding than conventional banks in the Lehigh Valley region of Pennsylvania. The most important things to understand about title loans in Allentown include:
- Collateral: Title loans actually use the fair market value of a borrower's fully owned vehicle to determine their maximum loan balance. The vehicle is then used as collateral to secure the loan and reduce the risk to the lender, permitting a higher rate of approval than more conventional lending products.
- Clear Titles Required: In order to obtain a title loan, borrowers must have a clear title with no liens owed to any other individual or financial institution. This means that financed vehicles are ineligible to be considered for title lending in Allentown and the Lehigh Valley.
- Short-Term Repayment: While loans from a big bank might take up to five years to be repaid, title loans offer a much shorter repayment period. In fact, many title loans in Allentown are repaid within 30 days. Others are extended several months. Both repayment scenarios are better than up to five years of monthly payments.
Simply put, title loans are short-term loans that base approval and the loan amount itself on the fair market value of a borrower's vehicle. These loans are offered to borrowers who own their vehicle outright, have a regular income from part-time or full-time employment, and commit to a short-term repayment period as little as 30 days in total length. The benefits of these loans, discussed below, make them an excellent fit for covering emergency expenses and short-term financial headaches when paying monthly bills.
Title Loans Allentown: The Application and Approval Process
Title loan companies like Loan Cheetah have worked hard to create an application process that is as simple as possible, whether for first-time borrowers or those who have experience with this type of loan. Before getting started, borrowers will want to make sure that they have the following information available.
- Vehicle Make, Model, and Year: Because title loans are approved and given a maximum amount based on a car's value, borrowers will need to provide their car's make, model, and year in the application. This information must be accurate to originate the loan.
- Vehicle Mileage: A current odometer reading is required by the application in an effort to further determine the vehicle's value and the loan's maximum amount.
- Contact Information: Borrowers should provide their legal name, current mailing address, zip code, and primary phone number within the application. In most cases, references and employment information will also be required alongside this personal information.
With this information provided, the application will be considered complete and ready for submission. Loan approval is closer than ever, but it won't happen right away. Instead, there are a few simple steps and procedures that occur between the submission of the formal application and approval of the final loan balance.
Immediately after submission, the application will provide an instant title loan estimate. This is the maximum amount that borrowers can expect based on the year, make, model, and current mileage of their vehicle. Before that loan amount can be approved and funded, however, a loan representative will review the application details.
Before issuing final approval on the loan, the representative will quickly call the borrower's primary phone number to confirm details, go over the loan approval process, and discuss some final details concerning the title loan terms and conditions. In most cases, borrowers will be approved immediately following this phone call.
Upon loan approval, the funds will be transmitted electronically to the customer's bank account on record. Due to the nature of electronic funds transfers, most borrowers will see the full balance of their title loan available for use on the following business day. Some banks may take longer, however, based on their method of handling these electronic transfers.
State Regulation of Title Loans in Pennsylvania
Title loans in Allentown are subject to stringent financial regulations passed by the Pennsylvania state legislature. These regulations, which have been refined and improved over time, are designed to protect consumers from damaging interest rates and other predatory policies. To that end, title loans in the state of Pennsylvania must confirm to the following rules, policies, and regulations, according to the Pennsylvania Banking and Securities Department:
- Title loan interest rates in the state of Pennsylvania are capped at a rate of 6 percent per month. This monthly interest rate requirement is inclusive of both the official interest rates and any monthly or one-time fees charged on the balance of the loan.
- Borrowers must have at least 30 days to fully repay the balance of their loan under state guidelines. Furthermore, the state requires indefinite repayment extensions to ensure that borrowers can continue making payments over a longer period of time if necessary.
- The state of Pennsylvania has made it illegal for title loan companies, and most automotive dealers, to install GPS units in a vehicle as a condition of lending money to that consumer. This same state law prohibits remote disabling of a vehicle's ignition due to nonpayment, late payment, or any other breakdown of terms between the borrower and their lender.
- Pennsylvania state law permits direct reporting of any violations of its short-term lending laws to the Pennsylvania Banking and Securities Department. The department will review and pursue the complaint on the borrower's behalf.
Benefits of Title Loans and Auto Equity Loans in Allentown
In terms of financial regulations, Pennsylvania has some of the strictest laws on the books. That means borrowers can enjoy great peace of mind when choosing a title loan to cover their short-term or emergency expenses, even though this type of loan may not be very common or very well known in the Keystone State. Alongside the advantages that come with state oversight, title loan companies in Allentown and the Lehigh Valley are proud to offer borrowers a long list of essential benefits with their loan:
- Higher approval rates that unsecured, or conventional, loans from big banks. Because title loans are secured by a vehicle title, the vast majority of title loan applicants become approved title loan borrowers. This is an absolutely essential way that title loans help financially disadvantaged borrowers get back on their feet and conquer their monthly expenses.
- Shorter repayment periods for more peace of mind. Long-term repayment windows can last several years and turn a one-time financial hardship into years of regret, interest payments, and budgetary considerations. With a title loan, the balance can be repaid in as little as a month. That means it's easier to move on from a financial headache and be free of the stress caused by a monthly shortfall.
- Quicker availability of funds. There's no need to wait for a check in the mail or spend days refreshing a bank's website to see if approval was granted. Title loans are approved quickly and funded, in most cases, within a single business day. There is simply no quicker way to get financial peace of mind.
- Borrowers keep their car. Most secured loans require that property be turned over to the lender. That's not the case with title loans. Instead, borrowers get to keep and drive their car while they make timely monthly payments toward the outstanding loan balance.
The benefits of a title loan can really help Lehigh Valley customers turn the page and move on from an unexpected shortfall in their monthly budget. With a quick application process, next-day funds availability, and the opportunity to talk personally with a loan specialist when approval is granted, title loans provide necessary peace of mind in a world where paying bills on time is of the utmost importance.