Title Loans in Scranton, Pennsylvania from Loan Cheetah
The beauty and heritage of northeastern Pennsylvania makes it seem as if this unique region of the Keystone State is without stress, whether financial or otherwise. Those who live in Scranton and the surrounding areas, however, know all too well that financial hardships are real and that they often require creative solutions. Title loans in Scranton, which aren't often thought of by state residents, can help ease the stress and pain associated with budgetary problems and unexpected expenses. Designed as a short-term lending product, a title loan allows borrowers to use their existing car as security for a high-value, short-term loan that can put an end to financial headaches.
Title Loans Defined: What to Know in Scranton, PA
Consumers in a financial bind often find that their options are limited when it comes to borrowing and covering unexpected expenses. Banks might turn them down, limit the amount of money they can borrow, or require that personal property be handed over as a form of security. This just isn't realistic for most people in northeastern Pennsylvania. In fact, these practices make it even harder to move on from a personal financial hardship! Title loans are different in a few key ways.Title Loans Are Securitized
Title loan companies in Scranton are always looking for ways to make loan approval easier. That's why every title loan in Pennsylvania is securitized by a vehicle's clear title. When customers fully own their vehicle, and have no lienholders listed on the title at all, they can use the fair market value of their vehicle to obtain a pretty significant amount of money that will cover their monthly expenses.Approval is Based on the Car's Value
At big banks, approval is a credit-based decision that takes into account a borrower's last seven years of credit card applications, payments, timeliness, and more. Title loan companies understand that some customers need a different type of approval process. For this reason, loan approval is typically based on whether a car is owned, has a clear title, and has a fair market value that permits advantageous lending. The answer is almost always "yes," and borrowers are almost always approved for the funds they need.Repayment is Faster
Most title loan companies offer repayment plans that take as little as 30 days. In most cases, that means the full balance of a loan can be repaid in just two payments. This helps to reduce the impact of a loan on the budget and allows for fewer monthly fees on the balance.Regulations are Strict
In most states, including Pennsylvania, title loans are governed by short-term lending regulations that control interest rates, repayment periods, and other practices. This extra regulation gives borrowers peace of mind that their identity, financial security, and overall amount of stress will be impacted positively by their title loan approval.
How to Apply for a Title Loan in Pennsylvania
Loan Cheetah offers a wide array of short-term loan options to people throughout the state of Pennsylvania, including title loans are that tied to the fair market value of a fully owned vehicle. To get started with a title loan, borrowers must submit a formal application. To save on processing time and costs, this application is submitted exclusively online. The following information must be gathered prior to the application process so that borrowers can submit correct information as quickly as possible:Vehicle Information
- Vehicle make
- Vehicle model
- Vehicle year
- Current odometer (mileage) reading
- Certification of a free and clear title
- Current legal name
- Current mailing address
- Primary phone number
- Employment information
- Personal loan references
- Bank account details for loan funding
Once this information has been gathered and submitted via the online application, borrowers are ready to hit the "submit" button and proceed through the next stage of the approval process. It's important to note that instant approval is not possible with a title loan, but an instant estimate can be generated after submission. This estimate is generated based on the vehicle's make, model, year, and current mileage information as submitted in the application and is subject to review by a loan specialist.
In fact, the entire application will next be reviewed by a loan specialist. During this stage of the application process, which typically requires within a few moments or hours of application submission, loan specialists will verify key vehicle and contact details. Once they have verified this information and decided whether to approve the loan, they'll contact the borrower at their primary phone number. During this conversation, the loan specialist will discuss the loan amount, the estimated date when fund will be available, and special terms and conditions that apply to the loan.
Typically, title loans are funded the same day that they are approved. Funds are transmitted electronically to the customer's listed bank account during this process. Most banks process electronic funds transfers on a daily basis, which should allow funds to be available for use the next business day. Some banks may take longer, however, depending on their unique policies. Once the funds are received, customers enter repayment according to the schedule that their loan specialist discussed with them upon approval.
Title Loans in Pennsylvania: A Look at State Regulations
All states regulate title loans, and all short-term loan types, to some degree. Pennsylvania's regulations are quite strict and pertain to auto title loan interest rates, fees, and other considerations. When pursuing auto equity loans online, here's what Pennsylvania borrowers need to know about their state's laws.
- Interest Rates: Pennsylvania caps the interest rate on title loans to 6 percent monthly. Importantly, the state considers this rate to include both a formal interest rate and any other monthly fees attached to the loan. According to Pennsylvania regulations, fees constitute an "effective interest rate."
- Repayment Period: Title loans in Scranton must have a repayment period of at least 30 days, though the state has no maximum length concerning the repayment of a short-term loan. Furthermore, Pennsylvania law does allow for an unlimited number of title loan "renewals" that will extend the repayment period by several weeks or several months if necessary.
- Remote Vehicle Control: It is illegal under Pennsylvania law to install a GPS device, or any other device, into a vehicle in conjunction with a loan. Lenders are not allowed to install any tracking device; they are also prohibited from installing a device that can remotely immobile the vehicle due to nonpayment or late payment.
A Great Option for Covering Short-Term Expenses
Title loans in Scranton might not be the most popular way of solving a short-term financial problem, but they're easily one of the best. There are several key benefits available to borrowers who take out a short-term loan that just aren't available when borrowing money from big banks with a more conventional lending product:
- Approval is More Likely: Title loans in Scranton are securitized by a customer's vehicle title, reducing the risk to the lender and improving the borrowers' chances of approval. In fact, almost every borrower with a clear title is approved for a title loan. That leads to greater peace of mind, faster funding of the loan balance, and an easier time overcoming financial obstacles during a critical time of the month.
- Tough State Regulations: Pennsylvania, and most other states, ensures that title loans are tightly regulated and consumer-friendly. This allows borrowers to solve their financial problems without worrying that they're being exploited or making the situation worse.
- Fast Availability of Funds: Conventional bank loans can sometimes day several days of weeks to be funded. Many loans will actually mail out a paper check, further delaying the process. Borrowers who choose a title loan are opting for one of the fastest and most convenient lending products on the market, with most funds available on the next business day following final approval. This is a loan designed for quickly solving financial problems once and for all.
- Vehicle Availability: While other types of loans require that collateral be handed over to the lender, title loans allow customers to keep their vehicle for personal use as they repay the loan balance. Borrowers are free to use their vehicle as much as they want while they pay off the loan balance and once again clear their title.
Title loans in Scranton, and throughout the state of Pennsylvania, are convenient, fast, and just what most people need to cover emergency expenses. With strong state regulation, a simple application, and approval times that are often measured in hours instead of days, borrowers in northeastern Pennsylvania are only a few clicks away from overcoming their own financial obstacles.