Learn More About Car Title Loans in Michigan
Michigan can be a beautiful place to live. There is so much to do with many parks to hike at and lakes to fish in! However, financial hardship exists in every state in America. If you find yourself unable to make rent, pay off a medical bill, or even take your dog to the vet, it is time to get help.
Car title loans in Michigan may be a suitable solution for your financial needs. When you’re down on your luck financially, you do not need to stay there! But, are title loans legal in Michigan? Keep reading to learn more about auto title loans in Michigan and how they work.
How Do Car Title Loans Work Exactly?
Before you can understand the legality of car title loans in your state, it is important to know how they work. Car title loans allow a person to borrow money off of the available equity in their vehicles.
They can use their vehicle’s title as collateral in exchange for funding. If approved, the lender places a lien on the title and removes it after the money is paid back.
This option can sometimes be called a secured loan because a physical asset is on the line if the cash is not returned. Traditional bank loans are called unsecured loan options because they do not use this type of collateral system– instead, they rely on credit history as the determining factor for approval.
If you have a poor credit history, this can signal to lenders that you are irresponsible with your money, and they can deny you funding. Car title loan lenders will run a credit check during your inquiry process, but they typically care more about two things:
- How Much Positive Equity Your Car Has
- If You Have a Steady Income to Repay the Loan
Your car’s overall value and whether or not you have enough income to pay back the funds can affect your approval for a title loan. Those two factors will matter the most during the inquiry process for an auto title loan in Michigan!
What Do I Need to Apply for a Car Title Loan in Michigan?
Applying for a car title loan in Michigan can sound like a hassle. For most loan options, an application can be! Driving to a physical location to inquire about a loan can be a hassle, especially with how much gas costs nowadays.
However, with some car title loans, the inquiry process can be done through your smartphone or computer. If you can get your groceries and errands done online, why not apply for a title loan in Michigan online?
You will need to meet a few requirements to inquire about a car title loan:
- Age Requirement: You will need to be the legal age to apply for a car title loan in your state.
- Income Requirement: You must be able to demonstrate that you have the ability to pay off a car title loan. While you do not need a 9-5 job, you will need a form of steady income to do so!
- Vehicle Requirement: You must provide a car title in your name at the time of inquiry.
If Title Loans are Legal in Michigan, What Happens if I Miss a Title Loan Payment?
If title loans are legal in Michigan, well, what happens if you miss a title loan payment?
Whether you apply for a car title loan in California or Michigan, missing payments on a title loan can negatively affect your credit score, and you risk having your car repossessed. If you don’t pay back the funding, you default on your loan, and auto title lenders can report you to the major credit bureau.
These circumstances can potentially impact your credit score, but this is not uncommon with missed payments. Whether or not your title loan payments affect your credit score positively depends on several factors, like your existing debt and credit utilization.
The best way to avoid missed payments on a car title loan is by setting up automatic withdrawals from your bank account! This system ensures that you’re never late with covering bills.
Start Your Michigan Title Loan Inquiry Today
Don’t let a bad credit score stop you from exploring your financial options. A car title loan agreement could provide you with the relief you need during an emergency. The inquiry process can be fast, straightforward, and you can begin online from the comfort of your home.
Start today by filling out this pre-qualification form or calling to speak directly with a title loan agent.