Your credit is poor, and you can’t wait for the gears of bureaucracy to turn on a bank loan anyway. You also need more than what a payday loan can provide, and you fear you can’t pay that whole loan back with your next paycheck. So, as a resident of the Buckeye State, you’re wondering, does Ohio offer title loans? It does – sort of. Here’s what you should know.
What is a Title Loan?
These secured short-term loans use your vehicle’s clear title as collateral. Such loans are a good alternative to bank and payday loans. Otherwise, all you basically need is a government-issued ID and proof of income. You also must be at least 18.
How Do Such Loans Work?
Say you give your car’s title to a lender in exchange for a $1,000 loan. When you repay the loan, typically within 30 days, you get the title back. For that $1,000 loan, you can expect to pat $1,250 – small potatoes, really, when you consider that you’re ineligible for a bank loan, and you got out of your emergency.
Are Such Loans Available in Ohio?
Technically, no, since they are illegal under the state’s Short-Term Loan Act. But such lenders do brisk business in Ohio under the state’s Credit Service Organization Act.
How Do I Get Such a Loan?
- Seek a trusted lender. You want to be certain to find a reputable lender. Before signing off on a loan, be sure to learn all about the application process. Make sure a reasonable interest rate and fees are offered.
- Apply. Often, you can do this online. In any case, you’ll need a government-issued ID, proof of income and residence, vehicle photos, and a free and clear title.
- Verification. At this stage, the company will begin checking your ability to repay. You also may be required to drive the vehicle to the brick-and-mortar location so that it can be physically evaluated. This will depend on the make, model, and year of your vehicle, as well as the mileage and overall condition.
- Get Your Cash. Your loan can be for as little as $200, up to $1,000 or more. You can get the cash in person or have the funds deposited to your bank. Just be certain you can repay your loan at the end of your term. This is also true for title loans in Columbus, Ohio.
- Repay the loan. Make sure you pay off the loan before or on the agreed-upon due date, plus any fees and interest.
Can I Get Multiple Loans on the Same Vehicle?
Yep. Once you have your title back, and you were a customer in good standing, you can apply for another title loan using the same vehicle. In fact, you can repeat the process for as many times as necessary, so long as you can repay.
But What Happens if I Can’t Make Payments?
Potentially, your car will be sold at auction to cover your defaulted loan. But before that happens, the lender will try to work out an alternative arrangement. If your vehicle is seized, you’ll also usually be afforded an opportunity to buy your vehicle back.
You can also seek refinancing, which is the process of shifting an existing loan to a new lender. You’ll sign a new contract with different terms, terms that are tailored to your situation.
So, does Ohio offer title loans? Well, you can get one there, indeed. We suggest you go through ChoiceCash, a company serviced by LoanMart, for your title loan needs. It’s vital that you have a reputable company to help you through your financial emergency, and ChoiceCash is that and more.