Taking out a title loan in Houma, Louisiana is easy if you know how to navigate it. The first thing you need to do is find a reputable lender, which shouldn’t take more than an Internet search and a bit of research. Read everything you can about the lender on the website, and search for reviews from previous borrowers to give you an idea of what people are saying about the lender.
You must keep in mind that when you take out a car title loan, you are using your vehicle as collateral. The lender will allow you to keep the usage of your vehicle while you pay back the loan, which is great, because you can still have transportation.
Once you find a lender, you can usually apply online by filling out a short application with your contact number and the make, model, year, and mileage of your vehicle. You can also fill out an application at the lender’s brick-and-mortar location, which you’ll have to visit anyway to sign the contract and get your money.
When you go to the lender’s office, you’ll need your free-and-clear vehicle title, a photo ID, and some proof of income, even if it’s disability or unemployment payments, which federal law requires lenders to consider as income. You can get a title loan without a job, in some cases. The lender will visually assess your vehicle and determine its value through Kelley Blue Book. Next, the lender will offer you a loan amount.
Do not, under any circumstances, take more than you can pay back. Remember that if you default on the loan, the lender has your vehicle title, which allows him or her to repossess the car and sell it at auction to satisfy the outstanding balance on the loan. Having a vehicle repossessed and sold is a nightmare no one wants to deal with, even the lender (it costs him or her time and money to repossess and sell a car!), so make sure you can swing the payments, and try to negotiate with the lender to come to an agreement that works for both of you.
The lender will give you a contract to sign, and do yourself a favor and read it thoroughly. The contract specifies all the details and goes into the laws under which your vehicle can be repossessed, so pay attention! Once you sign, you typically can walk out of the lender’s office with your much-needed cash. Once you pay off the loan, you get your title back and you’re golden.
Not everyone is a fan of title loans. Many consumer advocates feel the high-interest rates are designed to trap the underserved in a cycle of debt, but that is not always the case. Instead of seeing title loan lending as a creative extension of credit, these individuals look at subprime loans as another opportunity for government intervention and regulation. Many defend Louisiana title loans as a creative way for those who otherwise couldn’t get a traditional loan to get credit. When a financial emergency strikes those with bad credit have nowhere to turn, title loans can be very useful for providing short-term financial relief.