loan amount – Rigel Group LLC http://rigelgroupllc.com/ Thu, 17 Mar 2022 02:50:58 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://rigelgroupllc.com/wp-content/uploads/2021/10/icon-13-150x150.png loan amount – Rigel Group LLC http://rigelgroupllc.com/ 32 32 4 things you need to know about them https://rigelgroupllc.com/4-things-you-need-to-know-about-them/ Thu, 17 Mar 2022 02:50:58 +0000 https://rigelgroupllc.com/4-things-you-need-to-know-about-them/ If you need cash fast, a title loan may be the answer. These loans are relatively easy to obtain, but there are a few things you need to know before applying. In this blog post, we’ll discuss four important things you need to know about title lending. We’ll also give you some tips on how […]]]>

If you need cash fast, a title loan may be the answer. These loans are relatively easy to obtain, but there are a few things you need to know before applying. In this blog post, we’ll discuss four important things you need to know about title lending. We’ll also give you some tips on how to get the best deal on a title loan. So if you are considering applying for a title loan, be sure to read this article first!

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  1. What are title loans?

Title loans are a type of secured loan. This means that the loan is secured by collateral – in this case, your car. If you fail to repay the loan, the lender can seize your car and sell it to recover their losses. Therefore, title loans tend to have higher interest rates than other types of loans.

Also, title loans are usually short-term loans, which means you’ll have to pay them back fairly quickly. If you are not sure that you can repay the loan on time, it is best to avoid applying for it. This way, you don’t risk having your car taken back. On the other hand, see Confront the Red for the best title loan resources and guides so you know you can pay off the loan quickly. After all, a title loan is great for getting some quick cash. Also, if you’ve opted for title loans, be sure to research the best interest rate before applying. Some lenders may offer lower rates than you’ll find at traditional banks.

  1. How do title loans work?

When you apply for a title loan, the lender will appraise your car to determine its value. They will then give you a loan based on a percentage of the value of your car. The typical loan amount is between 25% and 50% of the car’s value. So if your car is worth $5,000, you might be able to get a loan of up to $2,500. Most lenders will give you between 30 and 90 days to repay the loan. If you can’t repay the loan within that time, you may have to renew the loan or risk losing your car. The most important thing to remember is that you will have to repay the loan, plus interest and fees. So be sure to budget accordingly!

  1. What are the requirements?

The requirements for obtaining a title loan vary from lender to lender, but you will generally need to provide some general information. You will need to show ID, proof of income and your car title. You may also be required to provide a copy of your driver’s license and registration of your vehicle. Namely, the lender will want to make sure that you are the legal owner of the car and have the ability to repay the loan. Therefore, it is important to have all of these documents ready before applying for a title loan. More so, make sure the information on all these documents is up-to-date and accurate.

  1. How much can I borrow?

The amount you can borrow when you apply for a title loan depends on the value of your car. The lender will appraise your vehicle and determine how much they are willing to lend you. However, it is important to remember that you will probably only be able to borrow part of the value of your car. This is because the lender wants to make sure they can recoup their losses if you fail to repay the loan. You may be able to get a loan for up to 50% of the value of your car, but it’s important to remember that interest rates will be higher than with other types of loans.

For example, if your car is worth $5,000, you might be able to get a loan for $2,500. However, the interest rate on this loan could reach 25%. This means that you will have to repay the loan in full plus interest within a relatively short period of time. This can be difficult to do, so it’s important to make sure you can afford the monthly payments before applying for a title loan.

So this is it. These are four important things to know about title loans. If you’re considering applying for it, be sure to do your research and shop around for the best deal. And, most importantly, make sure you can afford the monthly payments before you sign on the dotted line!

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Car Title Loans: 5 Alternatives to Get Fast Cash https://rigelgroupllc.com/car-title-loans-5-alternatives-to-get-fast-cash/ https://rigelgroupllc.com/car-title-loans-5-alternatives-to-get-fast-cash/#respond Tue, 05 Oct 2021 05:22:24 +0000 https://rigelgroupllc.com/?p=101 [ad_1] Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. 9.95% – 35.99% APR […]]]>


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Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


9.95% – 35.99% APR
$2,000 to $35,000** 550 As soon as the next business day (if approved by 4:30 p.m. CT on a weekday) No
  • Fixed APR:

    9.95% – 35.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    550
  • Loan amount:
    $2,000 to $35,000**
  • Loan terms (years):
    2, 3, 4, 5*
  • Time to fund:
    As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except CO, IA, HI, VT, NV NY, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Loan servicer:
    Avant
  • Loan Uses:
    Debt consolidation, emergency expense, life event, home improvement, and other purposes
  • Min. Income:
    $1,200 monthly


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.79% – 17.99% APR
$5,000 to $35,000 740 Next business day No
  • Fixed APR:

    6.79% – 17.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    740
  • Loan amount:
    $5,000 to $35,000
  • Loan terms (years):
    1, 2, 3, 4, 5
  • Time to fund:
    Next business day
  • Fees:
    No prepayment penalty
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, home improvement, self-employment, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


4.99% – 35.99% APR
$2,000 to $50,000 600 As soon as 1 – 3 business days after successful verification No
  • Fixed APR:

    4.99% – 35.99% APR
  • Variable APR:
    N/A
  • Min. credit score:
    600
  • Loan amount:
    $2,000 to $50,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as 1 – 3 business days after successful verification
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all states except DC, IA, VT, and WV
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan servicer:
    Best Egg and Blue Ridge Bank
  • Min. Income:
    None
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.99% – 24.99% APR
$2,500 to $35,000 660 As soon as the next business day after acceptance No
  • Fixed APR:

    6.99% – 24.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $2,500 to $35,000
  • Loan terms (years):
    3, 4, 5, 6, 7
  • Time to fund:
    As soon as the next business day after acceptance
  • Fees:
    Late fee
  • Discounts:
    None
  • Eligibility:
     Available in all 50 states
  • Customer service:
    Phone
  • Soft credit check:
    Yes
  • Loan Uses:
    Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


15.49% – 35.99% APR
$2,000 to $36,500 580 As soon as the next business day No
  • Fixed APR:

    15.49% – 35.99% APR
  • Min. credit score:
    580
  • Loan amount:
    $2,000 to $36,500
  • Loan terms (years):
    2, 3, 4
  • Time to fund:
    As soon as the next business day
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except NV and WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    $20,000
  • Loan Uses:
    Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


2.49% – 19.99% APR
$5,000 to $100,000 660 As soon as the same business day Yes
  • Fixed APR:

    2.49% – 19.99% APR
  • Min. credit score:
    660
  • Loan amount:
    $5,000 to $100,000
  • Loan terms (years):
    2, 3, 4, 5, 6, 7*
  • Time to fund:
    As soon as the same business day
  • Fees:
    None
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except RI and VT
  • Customer service:
    Phone, email
  • Soft credit check:
    No
  • Loan servicer:
    LightStream
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Credit card refinancing, debt consolidation, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


18.0% – 35.99% APR
$1,500 to $20,000 None As soon as the same day, but usually requires a visit to a branch office Yes
  • Fixed APR:

    18.0% – 35.99% APR
  • Min. credit score:
    None
  • Loan amount:
    $1,500 to $20,000
  • Loan terms (years):
    2, 3, 4, 5
  • Time to fund:
    As soon as the same day, but usually requires a visit to a branch office
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Must have photo I.D. issued by U.S. federal, state or local government
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.95% – 35.99% APR
$2,000 to $40,000 640 As soon as one business day No
  • Fixed APR:

    6.95% – 35.99% APR
  • Min. credit score:
    640
  • Loan amount:
    $2,000 to $40,000
  • Loan terms (years):
    3, 5
  • Time to fund:
    As soon as one business day
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all states except IA, ND, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    None
  • Loan Uses:
    Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


8.93% – 35.93% APR7
$1,000 to $20,000 560 Within one day, once approved9 No
  • Fixed APR:

    8.93% – 35.93% APR7
  • Min. credit score:
    560
  • Loan amount:
    $1,000 to $50,000
  • Loan terms:
    3 to 5 years 8
  • Time to fund:
    Within one day, once approved9
  • Loan types:
    Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    A U.S. citizen or permanent resident; not available in DC, SC, WV
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


5.94% – 35.97% APR
$1,000 to $50,000 560 Within a day of clearing necessary verifications No
  • Fixed APR:

    5.94% – 35.97% APR
  • Min. credit score:
    560
  • Loan amount:
    $1,000 to $50,000*
  • Loan terms (years):
    2, 3, 5, 6
  • Time to fund:
    Within a day of clearing necessary verifications
  • Fees:
    Origination fee
  • Discounts:
    Autopay
  • Eligibility:
    Available in all states except West Virginia
  • Customer service:
    Email
  • Soft credit check:
    Yes
  • Min. Income:
    Does not disclose
  • Loan Uses:
    Debt consolidation, credit card refinancing, home improvement, and other purposes


Credible Rating



Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.


6.46% – 35.99% APR4
$1,000 to $50,0005 580 As fast as 1 business day6 No
  • Fixed APR:

    6.46% – 35.99% APR4
  • Min. credit score:
    580
  • Loan amount:
    $1,000 to $50,0005
  • Loan terms (years):
    3 to 5 years4
  • Time to fund:
    As fast as 1 business day6
  • Fees:
    Origination fee
  • Discounts:
    None
  • Eligibility:
    Available in all 50 states
  • Customer service:
    Phone, email
  • Soft credit check:
    Yes
  • Min. Income:
    $12,000
  • Loan Uses:
    Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes
Compare rates from these lenders without affecting your credit score. 100% free!
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All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | Read more about Rates and Terms

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Interest rate ceilings on securities lending are coming soon ► FINCHANNEL https://rigelgroupllc.com/interest-rate-ceilings-on-securities-lending-are-coming-soon-%e2%96%ba-finchannel/ https://rigelgroupllc.com/interest-rate-ceilings-on-securities-lending-are-coming-soon-%e2%96%ba-finchannel/#respond Wed, 08 Sep 2021 16:24:53 +0000 https://rigelgroupllc.com/interest-rate-ceilings-on-securities-lending-are-coming-soon-%e2%96%ba-finchannel/ [ad_1] The Senate Banking, Housing and Urban Affairs Committee proposed this interest rate cap in a hearing and expressed the intent behind the idea. This bill aims to help American consumers avoid paying excessive and unreasonable amounts on small loans. What would this interest rate cap look like? Would this law reduce the debt of […]]]>


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The Senate Banking, Housing and Urban Affairs Committee proposed this interest rate cap in a hearing and expressed the intent behind the idea. This bill aims to help American consumers avoid paying excessive and unreasonable amounts on small loans.

What would this interest rate cap look like? Would this law reduce the debt of poor communities or remove a lifeline by bankrupting lenders?

This article explains how the federal interest rate cap of 36% on consumer loans will affect short-term loans.

Low value short term loans

The lenders that will be most affected by this bill will be the short-term lenders, such as payday lenders and title lenders.

  • Payday lenders let borrowers borrow against their wages. The loan must be repaid after two weeks or you can roll it over. All you need to be approved is a valid ID, a bank account, and a regular paycheck.
  • Securities lenders allows you to borrow against your vehicle. If you can’t repay your loan, they have the right to repossess your car. All you need to get approved is a valid piece of identification and an outstanding vehicle in your name.

Both types of loans are expensive – usually triple-digit APR rates because almost everybody is approved.

These types of lenders not manage your credit, making it the only option for getting cash in an emergency or if you can’t get approval from the bank.

Interest rates and charges for consumer loans

Not all states allow payday lending or securities lending. But of those who do, only 18 states have a 36% interest rate cap in place for payday loans and securities lending.

Without federal interest rate caps, some state lenders charge as much as APR 600%. Because taking a loan is so easy – all you need is a valid ID, bank account, and proof of income – just about anyone can fall victim to unfair and unreasonable loans .

Consumer loans that exceed 36% interest are expensive and can be an extreme challenge to repay. About 25% of payday loans end up being borrowed at least nine times, so for some people the interest and fees end up getting expensive. Following than the amount borrowed.

Reintroduce the invoice

This idea of ​​a federal interest rate cap was introduced in 2019. The bill will soon be reintroduced. The purpose of this bill is to help American consumers avoid paying excessive and unreasonable amounts on small loans.

Failure to comply with the 36% interest rate ceiling could result in the nullity of the loan once this law is adopted. This means that the lender will not be able to collect or keep the principal, fees, interest or other charges on the loan.

If this legislation passes, all charges on a credit transaction, including all charges, must be included in the APR. Otherwise, lenders could charge excessive fees as a loophole.

Fortunately, the big banks have taken steps to provide reasonable and responsible lending to American consumers.

The role of the bank

The big banks have recently introduced low-cost lending programs, which have put a strain on payday lenders and securities lenders.

https://www.cnbc.com/2021/05/28/big-bank-ceos-open-to-federal-36percent-interest-rate-cap-on-consumer-loans.html

If small lenders go out of business – which some lenders claim is possible if a federal interest rate cap kicks in – the banks will have an advantage.

As of May 2020, the Federal Reserve has allowed banks to offer low-value loans, as long as they adhere to lending principles. This ensures that the loans are fair and responsible.

Why 36%?

Proponents of the 36% interest rate cap believe 36% is a fair and reasonable amount to charge on a small loan. This number is not arbitrary. It has been asserted as an appropriate amount to charge so that the majority of borrowers can repay it.

Simply put, an interest rate of 36% is the upper limit for durable loans. This number ensures that lenders do not take advantage of borrowers while still being able to stay in business.

What Would the Federal Interest Rate Cap Mean for Payday Lenders?

If this legislation is passed, lenders will have to work quickly to adapt to this new regulation. They will first need to decide if they can stay in business while charging a maximum interest of 36%. Otherwise, they will have to make serious changes to their budgets.

Payday lenders will no longer be able to keep consumers in a loan – they do this by offering to renew the loan or take out another loan – because it will be much easier for the consumer to repay the loan in the first place.

More and more states are imposing the 36% cap

In recent months, many states have placed limits on interest rates on payday and other short-term loans to protect consumers from debt traps. Interest rates on short-term loans drop from 400% to 36% across the country.

Other states have proposed the bill but are awaiting the governor’s signature. States like Ohio have introduced other limits and regulations that have helped reduce exorbitant interest rates on payday loans.

Even though many states are moving towards more equitable payday loans and land titles, more than half of U.S. states do not have allrestrictions on short-term loans. Anyone with a valid identity document and proof of income can take out a loan.

According to a securities lender, Texas is the state with the highest interest rates on securities lending. The average APR for a subprime loan in Texas is 664%, which is insanely high. This interest rate is 40 times higher than the average credit card interest rate.

Benefits of the Federal Capped Interest Rate

The main benefit of the federal capped interest rate is that it will protect consumers from drowning in high cost loans. Supporters of this bill believe that any interest rate above 36% is predatory.

This federal interest cap will end the high cost payday loans that have stolen billions of dollars from American consumers. These lenders derive most of their profits by luring borrowers into a debt trap, a never-ending cycle of debt repayment.

High cost payday loans benefit American consumers who cannot get loan approval from traditional banks. These predatory payday loans are known to take hold in poor communities and prey on naive and desperate consumers.

Payday loans and title loans should be seen as a way to help people in financial emergency, not a way to take advantage of desperate people and trap them in debt.

Some people think that payday loans and title loans are going bankrupt. People will then rely on banks for small loans, which could protect them from predatory lending and reduce systemic racism.

The disadvantages of the federal capped interest rate

Opponents of the idea of ​​a capped federal interest rate claim that this policy will actually reduce access to credit because it will bankrupt lenders. If lenders go bankrupt, consumers will have nowhere to go for emergency cash.

Opponents of this bill also believe it takes money from the economy when lenders go bankrupt. Payday lenders help people pay for car repairs so they can go to work, pay medical bills, and pay for other emergencies.

Plus, the high interest rates charged by short-term lenders seem high, but in reality, the short loan term and small loan amount mean that most borrowers don’t pay more than $ 50. However, this only applies to small, short term loans.

A different approach

Another approach that could help consumers avoid excessive debt is to introduce a policy that requires lenders to turn down borrowers who apply for loans within 30 days of taking out three consecutive payday loans.

This approach would regulate payday loans by limit repeated borrowing, which could help consumers avoid debt traps. This would force consumers to repay the loan rather than continue to borrow.

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Are Car Title Loans a Smart Move? (2021) https://rigelgroupllc.com/are-car-title-loans-a-smart-move-2021/ https://rigelgroupllc.com/are-car-title-loans-a-smart-move-2021/#respond Mon, 30 Aug 2021 10:09:30 +0000 https://rigelgroupllc.com/are-car-title-loans-a-smart-move-2021/ Title loans for cars are short-term loans with very small amounts of money for your car. Achieving the auto title loan requires giving the lender the title to your car. Auto title loans are subject to higher interest rates and charges which render them hard to pay back. If your bank accounts don’t appear to […]]]>
  • Title loans for cars are short-term loans with very small amounts of money for your car.
  • Achieving the auto title loan requires giving the lender the title to your car.
  • Auto title loans are subject to higher interest rates and charges which render them hard to pay back.

If your bank accounts don’t appear to be in good shape and you’re in bad credit, you may have thought about getting the possibility of a title loan for your car as a convenient method to earn cash. Although they could be a small amount of money, these loans are dangerous if you don’t have a good handle on your financial situation.

This article will explain the way in which auto title loans operate and analyze the benefits and risks of having one. To assist consumers in making more informed decisions about their finances Our research team searched the market to find the top auto loan firms.

What are the Car Title Loans?

In contrast to payday loans, which serve the same purpose they function by using your car as collateral. These loans secured by your vehicle are designed for smaller amounts of money and usually need to be paid back within a brief period of time.

According to the Pew Charitable Trusts reports that the average amount of loans is $1000. Because these loans are short-term typically with terms from 15-30 days the borrowers generally have to pay the loan in one go.

What is the process for car Title Loans work?

The procedure to get an auto title loans is quite easy:

  1. The first step is to must fill out an application. Then, you show your car, title, as well as the photo identification to your lender. It is possible to request an additional set of keys.
  2. When the loan gets approved the lender for the car title swaps the loan amount and keeps the title to the car.
  3. When you are ready to repay you must pay the lender an annual cost in addition to the principal amount you borrowed.

The monthly charges for a car title loan are typically very high-interest. As per the Federal Trade Commission, the average cost is 25%. This is equivalent at an annual rate (APR) of around 300 percent. It isn’t cheap.

Let’s take an example. For instance, suppose you obtain an auto title loan at $ 500 , with the addition of a 25% fee for finance. Twenty percent of $ 500 is equal to $125 that will be added to the final amount due. At your time to repay you’ll be owed $ 625.

You can apply for an auto title loan

The borrower can apply for auto title loans both online or in person. A credit check is not included in the loan application procedure. The reason for this is that the failure to pay the loan can mean that the lender could take possession of your car.

In order to approve the application for a car title loan, most lenders require clear title. This means that you’ve purchased the car. But, some lenders might just require proof that you own equity in the car.

What are the reasons why car title loans are high risk?

If you take out the auto title loan you run the risk of not only losing your vehicle as well as being stuck in a cycle of debt. If you’re not able to pay back this loan on time, your lender could permit an “renewal”. A rollover occurs the process whereby a lender permits you to hold on to the loan for a further 30 days, but it makes sure that you pay monthly fees in addition to the original.

Reversals are not uncommon. In June The Consumer Finance Protection Bureau (CFPB) conducted a survey of those who had taken out auto title loans during the past six months. The results showed the 83% the respondents had outstanding debt on their loans.

The CFPB also revealed that around 20 percent of the borrowers suffer repossession if loans aren’t repaid in complete. According to Forbes auto title lenders get the bulk of their earnings by allowing borrowers to obtain new loans in order to pay off existing loans. This cycle of loans that are small that turn into long-term debt helps ensure the continuity of business.

What are the benefits and disadvantages of car title loans?

If you’re thinking of applying for an auto title loan in order to pay for unplanned expenses, you must think about the advantages and disadvantages.

Auto title loans are beneficial to borrowers with weak credit, as the majority of lenders don’t conduct credit checks. In addition your credit score won’t be affected if you’re in late with a loan payment. But, the speedy access to cash using the help of an auto title loans seldom justifies the cost of interest and the possibility of losing the value of your asset.

Alternatives to loans for cars

The data on auto title loans is not the best choosing a different route is probably a wiser option for financial reasons. Here are a few alternatives for show your car’s title

  • Payment day advance If you’re at a good place with your company, you could be eligible for a part of your earnings earlier.
  • Family and friends If you’d like to stay clear of any financial institution Try chatting with your relatives and friends to see if you are able to come up with a loan arrangement that includes a payment plan.
  • credit card credit cards have defined limits and you’ll incur interest charges if are unable to pay your account in full by the expiration of the billing period. However, credit cards offer lower rates of interest than loans secured by car title.
  • Personal loan The installment loans are suitable for nearly every financial need. They’re available at financial institutions, such as credit unions or online lender. They typically have terms for repayment that range from one to five years. They also have interest rates are generally lower than those of auto title loans.

Best tips for auto loans

When you’re financing your car or using it as collateral, you need to evaluate your options to be sure you’re receiving the best rate. It’s a good idea to go over the terms of any loan, and also check for penalties. Additionally, you can take advantage of online prequalification services offered by several financial institutions.

FAQ: Title loans for cars

What title loan should I take out for my car?

As per the CFPB the average car title loan is approximately $1,000. The typical loan amount is between 25 to 50% of worth of the vehicle.

Is it easy to Take A Car Title A Loan?

The process of getting a title loan for a car is quite simple. The borrower has to fill out an application , and then lets the lender look over the car and the title. If the title and ownership for the car is in order and the lender is satisfied with the application, then the borrower will return the title in exchange for an installment loan.

What is the process for auto title loans function?

The auto title loan is term loans that are short-term and have very high rates of interest. When you take out a loan for your car title the lender holds the title of your car as collateral. If you don’t pay back the loan the lender has the right to seize the car.

Does Securities Lending Affect Your Credit?

A majority of auto title loans don’t need a credit check. The lender is not likely to report payments to credit bureaus due to the fact that they could repossess the car to pay off the debt.

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Title lending vs registration lending https://rigelgroupllc.com/title-lending-vs-registration-lending/ https://rigelgroupllc.com/title-lending-vs-registration-lending/#respond Thu, 15 Jul 2021 07:00:00 +0000 https://rigelgroupllc.com/title-lending-vs-registration-lending/ [ad_1] If you need the cash right away and have a car, you might be wondering whether you should get a title loan or a car license. Both of these loans provide a way to get financing quickly by using certain aspects of your car to secure the loan, but there are some differences between […]]]>


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If you need the cash right away and have a car, you might be wondering whether you should get a title loan or a car license. Both of these loans provide a way to get financing quickly by using certain aspects of your car to secure the loan, but there are some differences between the two options. Let’s dive deeper into this online securities lending and registration loans are, and how they differ from each other.

What is a title loan?

A title loan is a secured loan that allows you to use your car as collateral to secure funds. You can receive a loan amount of up to 50% of the appraised value of your vehicle and you can continue to drive your car while you pay off the loan. Most securities lenders require that you own or hold equity in your vehicle. If you get the approval, the lender will keep your title while you pay off the loan.

What is an enrollment loan?

A registration loan is a secured loan that uses your car’s registration as collateral, so you may be able to get approved without owning the car. The lender will decide the loan amount based on factors such as the value of your vehicle and your income. Just like with title loans, you can continue to drive your car while you pay off the loan.

Differences between title loans and registration loans

Eligibility criteria

Title loans require you to own your car or have equity in your car to qualify, unlike car registration loans. With a registration loan, all you need to do is have the registration in your name.

Amount of the loan

Title loans have larger borrowing limits than car license loans since you must own your car. You may be able to receive a title loan worth 25 to 50% of the appraised value of your vehicle.

Interest rate

Vehicle registration loans may have higher interest rates because they do not involve the use of your car as collateral.

Risk of repossession

Although the lender can repossess your car if you do not pay off a title loan, there is no risk of repossession with registration loans since you are not using your car as collateral. But they can come with other risks in default, such as the lender sending collections after you or suing you for the remaining balance.

The bottom line

Since title loans can come with lower interest rates and higher borrowing limits, they may be the right option for you if you own your car. But if you don’t own your car and need some quick cash, you may want to consider getting a car license. Do your research and compare lenders and loan terms to find the best option for your situation, and make sure you can repay the loan before you apply.

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Pritzker Signs Law Capping High Interest Payday Loans and Securities Lending | Latino voices | Chicago News https://rigelgroupllc.com/pritzker-signs-law-capping-high-interest-payday-loans-and-securities-lending-latino-voices-chicago-news/ https://rigelgroupllc.com/pritzker-signs-law-capping-high-interest-payday-loans-and-securities-lending-latino-voices-chicago-news/#respond Sat, 03 Apr 2021 07:00:00 +0000 https://rigelgroupllc.com/pritzker-signs-law-capping-high-interest-payday-loans-and-securities-lending-latino-voices-chicago-news/ [ad_1] Governor JB Pritzker signed the Illinois Predatory Lending Prevention Act late last month, which caps annual interest rates on short-term loans at 36%. The law, which took effect immediately, has an impact on payday loans – typically a two-week loan in which the money is taken from the borrower’s next paycheck. It also has […]]]>


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Governor JB Pritzker signed the Illinois Predatory Lending Prevention Act late last month, which caps annual interest rates on short-term loans at 36%.

The law, which took effect immediately, has an impact on payday loans – typically a two-week loan in which the money is taken from the borrower’s next paycheck. It also has an impact on auto title lending and other short-term loan products.

“Anything over 36% is predatory and wear and tear,” said State Senator Jacqueline Collins, who co-sponsored the measure. “So we know that high cost payday loans and auto loans have robbed communities of billions and billions of dollars, primarily black and brown communities in the state of Illinois.”

Kesha Warren knows the high cost firsthand. When she needed a short-term cash infusion of $ 1,250 to cover the wage costs of her small janitorial services business in 2019, she took out an auto title loan, a short-term loan that uses the borrower’s vehicle as collateral.

She says she has been left out of more traditional bank loans.

“No one wants to lend to someone who has $ 100,000 in student loans, so it was very difficult for me to get a traditional loan,” Warren said.

The loan carried an annual interest rate of 197%. This inflated her original loan by $ 1,250 into a total payment of $ 3,400 which she repaid earlier this year. If she hadn’t, it could have cost her an additional $ 2,000.

But Steve Brubaker, who lobbies the state government on behalf of the Illinois Small Loan Association, says the 36% rate cap in the law will effectively bankrupt most breakdown and auto title stores. while cutting a lifeline for borrowers with poor credit.

“We are closing these stores, we are laying people off, we are not giving customers any options and we are taking a billion dollars out of the market that was used to fix your car, buy a new refrigerator, spend on children’s clothes for. school, ”Brubaker said.

The average APR for an auto title loan in Illinois is 197%, according to statistics from the Illinois Department of Financial and Professional Regulation. The average rate for payday loans is 297%.

But Brubaker says the numbers are misleading. When you measure the typical two-week loan term, it comes down to about $ 15 per cent.

“When they see this giant figure, they misunderstand what the customer has to pay back,” Brubaker said. “The average payday loan amount in 2019 was $ 340. And the average fee amount was $ 52.

Brent Adams is Vice President of the Woodstock Institute, a nonprofit organization that advocates on behalf of low income communities and communities of color. He says the payday loan industry relies on inserting borrowers into a never-ending cycle of debt with hidden running costs.

“The business model is to keep the consumer on the loan, so when the bill comes due, the lender will offer an option to roll over the loan, refinance it, take out a different loan, a number of options,” Adams said. . .

“It’s seen as an opportunity to be able to meet needs, but in reality it’s (to enter) a cycle of debt,” said Lizette Carretero, head of financial well-being at the Resurrection Project. “We see it mostly in communities of color, we see it in households earning less than $ 25,000 a year.”

Even if Pritzker signed the legislation, the problem might not end there.

Opponents of the payday lending industry say they are concerned about a series of bills currently circulating in the General Assembly. They say these bills would take away some of the protections in the new law.

State Senator Sue Rezin is a sponsor of one such Senate bill, SB2306, which she says would protect consumers while giving them access to lending options.

Senate Bill 2306 proposes a simple amendment to the Predatory Loan Prevention Act that would continue to allow traditional financial institutions to offer convenient, well-regulated auto loans to consumers in Illinois through Illinois auto dealers, ”Rezin said in an emailed statement to WTTW News. .

“Protecting Illinois consumers is essential, which is why my bill strikes a balance between protecting Illinois consumers and ensuring secure access to auto credit. Under this legislation, interest rate caps are still in place to protect consumers from predatory lenders. I look forward to working with all parties to address their specific concerns as we move forward with this bill. “

State Representative John Carroll, who sponsored a similar bill in the House of Representatives, declined to be interviewed.

Brubaker says he believes the 36% rate cap will unintentionally push borrowers into even more dangerous and unregulated online lending products.

But Collins says credit unions and community banks can pick up the slack, and ending predatory lending helps eliminate systemic racism.

“Unless we really face these policies and institutional barriers, we will always face policies that preserve inequalities,” Collins said.

The Resurrection Project Carretero agrees. “We understand that people (enter) these programs because of credit issues. We strive to work with credit unions, community banks, second chance products from real institutions that allow you to re-enter the financial sector and seek opportunities to create a better financial journey, ”he said. she declared.


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Are securities pawns and securities lending legal in Georgia? https://rigelgroupllc.com/are-securities-pawns-and-securities-lending-legal-in-georgia/ https://rigelgroupllc.com/are-securities-pawns-and-securities-lending-legal-in-georgia/#respond Wed, 16 Sep 2020 07:00:00 +0000 https://rigelgroupllc.com/are-securities-pawns-and-securities-lending-legal-in-georgia/ [ad_1] Title loans have become very popular in recent years in the South. However, many people are unaware of the difference and legality behind title loans and title pawns. Some of you reading this may not have known they were different until this second – and that’s okay! We will tell you everything. The difference […]]]>


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Title loans have become very popular in recent years in the South. However, many people are unaware of the difference and legality behind title loans and title pawns. Some of you reading this may not have known they were different until this second – and that’s okay! We will tell you everything.

The difference between title loans and title pawns

Yes that’s right, they are both very similar. However, you should know the difference as one is legal and the other is illegal in the state of Georgia! So let’s go, okay?

Securities lending

A title loan is a type of financial aid that uses the title of your vehicle as collateral so that you can borrow funds. You don’t need to have perfect credit, but some providers will verify that you are not bankrupt.

Some companies refer to them as car title loans, pink card loans, auto equity loans, auto equity loans, etc. This is how they get confused and go under the radar of state law because securities lending in Georgia is illegal.

Title pawns

A title pawn, on the other hand, is absolutely legal in Georgia. However, they still use your vehicle’s title as collateral. Plus, there’s no thorough credit check.

So what’s the difference? Well, you have to be okay with the fact that you will be separated from your vehicle title for the duration of the loan term.

The dangers of title pawns

Now, if you can afford to pay off your loan, the title pawns are safe. However, it’s incredibly easy to fall into the debt cycle if you’re not careful and planning properly.

If you haven’t heard of the Common Debt Cycle or Debt Trap as it’s otherwise known, here’s how it works:

  1. You take out a title pawnbroker.
  2. You realize that you can’t refund it for some reason.
  3. You take out another loan to pay off the original title loan.
  4. You cannot afford to pay off the second loan.
  5. So you take out another loan.
  6. Therefore, a cycle was born, a cycle from which it is extremely difficult to break free.

Yes, that can get you in a really bad spot, very quickly. Not to mention, they don’t take life too nicely by throwing expensive and catastrophic curve balls at you!

Fortunately, there are ways to plan ahead and see if you can afford it before signing up for anything.

To get started, you can use a free online loan calculator. Here you enter the loan amount, the interest rate, how much you can afford to pay each month, and the term. Then he will tell you if you can afford the loan. Sounds good, doesn’t it?

Once you’ve done that, save for your loan. It sounds rather counterintuitive, but it can keep you from falling into the terrible debt cycle we talked about earlier. Setting aside a specified amount until when you need a loan can help you meet your repayment deadline and ultimately keep your vehicle and life intact.

New Usury Laws To Make Title Tokens Safer For You

Hopefully, we didn’t just put you off the idea of ​​getting a title pawn. Why? Because Georgia has enacted new usury laws to make acquiring much safer for you. Let’s take a look at the details.

As we mentioned at the start, title pawns have become increasingly popular over the years – and trust us, the federal government has noticed! Therefore, they cracked down on the title pawn industry, to help protect your financial health.

The new usury laws have been enacted by the Consumer Financial Protection Bureau. This regulation requires pawn shops to determine if you can repay the loan before giving it to you. While people shouldn’t take loans if they can’t afford to pay them back, the Usury Act has helped people (who would otherwise make rash decisions in times of crisis) to stay out of debt. debt cycle.

Time scale and repayment terms

Since title tokens fall into the “pawnshop” category, providers can charge you up to 25% interest per month for the first 90 days (plus fees). After that, it goes down, but there is an additional charge for each day you go over the 90-day “limit”.

It is important to note, however, that these tokens must be issued for 30 days (as stated in the Usury Act). If you can’t pay it off so quickly, the term will be extended in 30-day increments. For those who hit three extensions, you’re entering the debt cycle, so try your best not to keep asking for more time – you’ll end up paying a lot more than it’s worth.

Contract requirements

If you’ve ever taken out a title loan, you know the requirements. They haven’t changed much under the new usury laws. Either way, we’ll take a look at them now.

The contract requirements are as follows:

  • The 30-day interest rate;
  • The payment of extensions and the related costs;
  • The start and end date of the repayment term;
  • The total amount (in dollars) that must be reimbursed; and
  • The declaration informing you that if you do not pay, your vehicle will be taken back.

Watch out for these providers

Unfortunately, there are still companies operating in Georgia that illegally offer securities loans. These suppliers will not provide you with legal documents and will not follow usury laws. Not to mention that their interest rates are appallingly high.

To avoid selling your soul to these illegal lenders, be sure to do your research. The internet is full of reviews for all the places you could go, so check them out first. This will save you a world of hassle in the end.

The final take

We know it was a lot of information that was definitely a little confusing and a little bit scary. But don’t worry, you can find a summary below to ease your nerves and show you that there is nothing to worry about (as long as you plan!).

  • Title pawns in Georgia are legal, title loans are not.
  • You can use online calculators to check whether you can afford it or not.
  • New usury laws have been enacted by the Consumer Financial Protection Bureau.
  • These laws ensure that the lender must verify that you can afford to repay them in full before allowing you to sign the agreement.

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How Do Car Title Loans Work? https://rigelgroupllc.com/how-do-car-title-loans-work/ https://rigelgroupllc.com/how-do-car-title-loans-work/#respond Fri, 14 Aug 2020 07:00:00 +0000 https://rigelgroupllc.com/how-do-car-title-loans-work/ [ad_1] All loans carry risk if they are not repaid on time. One particularly troubling consequence of a car title loan, however, is if you default on your payment obligations: the lender can take your vehicle. Before you consider getting a title loan, think about the potential potholes you will encounter if you use your […]]]>


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All loans carry risk if they are not repaid on time. One particularly troubling consequence of a car title loan, however, is if you default on your payment obligations: the lender can take your vehicle.

Before you consider getting a title loan, think about the potential potholes you will encounter if you use your vehicle as collateral to borrow money.

What is a title loan?


Definition of car title loan

An auto title loan is a short-term loan that allows you to get a small amount of money in exchange for handing over the title of your vehicle to the lender. You will also have to pay a significant fee to borrow the money.


Let’s say you own a car worth $ 5,000 and you find yourself in an emergency that requires $ 1,000. A title loan allows you to borrow against your vehicle, which allows you to quickly get that $ 1,000. Just like a mortgage is against your home, a title loan uses your vehicle as collateral.

“One of the biggest pieces of information people need to understand about a title loan is that it uses your vehicle’s equity to secure the money you borrow,” says Bruce McClary, vice-president. communications chair for the National Foundation for Credit Counseling. .

In most cases, you must own your vehicle to be eligible for an auto title loan. The term “car” may appear in the name of the product, but these loans may also be available for motorcycles, boats and recreational vehicles.

While some lenders will offer loans if a car is still in repayment, most require the owner to hold title without any debt related to the vehicle. Consumers can typically borrow between 25 and 50 percent of the value of the car.

How does securities lending work?

Car title loans come in many forms. Some are lump sum loans, which means the borrower has to pay the full loan amount plus interest charges within a month or so. Installment loans, with similarly high APRs, can be repaid over three or six months, depending on the lender.

When applying for a car title loan, be prepared to show the lender clear title, proof of insurance, and photo ID. Some lenders ask for a second set of keys.

While securing a title loan can be easy, the convenience comes with significant costs and risks, according to Graciela Aponte-Diaz, director of federal campaigns at the Center for Responsible Lending.

“Some auto title lenders install a GPS device – dubbed a ‘kill switch’ – that can prevent the borrower’s car from starting, using this practice as a way to collect debt or facilitate foreclosure of the car,” explains Aponte-Diaz. . “In addition to being (the) primary form of transportation to work, to the doctor and elsewhere, a car is often a person’s biggest financial asset. The looming threat of losing your car is anxiety-provoking, to put it mildly.

Disadvantages of Securities Lending

The main disadvantages of title loans are a short repayment period, very high interest rates, and the potential loss of your car if you default on your payment.

“These are generally short-term loans with very tight repayment cycles,” says McClary. “If you can’t pay the loan back when it falls due, it gets carried over to another cycle with more fees. This creates a very difficult situation for people who are already struggling to repay. This is the exact definition of the debt cycle.

In addition to tight repayment terms, auto title loans have extremely high interest rates. Lenders often charge 25% each month in finance fees. On a $ 2,000 loan, you will pay an additional $ 500 in interest if the loan is paid off in 30 days. If you are behind on your payment and those interest charges add up, the loan can end up costing much more than the original sticker price.

Perhaps the biggest downside is losing your car. If you can’t pay it back, the lender can take your vehicle back. In 2016, a Consumer Financial Protection Bureau study found that 20% of those who take out title loans have their vehicle seized.

Alternatives to securities lending

With such drawbacks, McClary recommends reaching out to traditional banks and credit unions to explore other, less expensive lending options.

“A lot of people might avoid traditional lenders because of assumptions about their credit,” he says. “It’s the most dangerous thing you can do. You are depriving yourself of money that you could potentially save.

Even if you don’t have a bank account, have a lower credit rating, or have struggled with bad financial decisions in the past, it’s worth investigating all of your loan alternatives. “It’s interesting how flexible these traditional lenders can be,” says McClary. “There are a lot of credit unions that are willing to work with unbanked customers. “

McClary says he rarely advises increasing credit card debt, but stresses it’s a better option than a title loan. “If you have unused credit on a credit card, you can count on it to cover your costs,” he says. “In most cases, the interest rate on your credit card will be much lower than what you get on a car title loan. And this route prevents you from potentially losing your vehicle.

At the end of the line

If you decide that a car title loan is your only option, make sure you understand the terms of the loan. Securities lenders are required to show them to you in writing before signing, and federal law requires them to be honest and upfront about the total cost of the loan. And remember, these costs are probably not worth the risk.

“Car title loans often lead people to get into debt and lose their cars,” says Aponte-Diaz. “Car title lenders often make people worse off than they were before they took out the loan.”

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Why are title loans better financial options than traditional loans? https://rigelgroupllc.com/why-are-title-loans-better-financial-options-than-traditional-loans/ Tue, 14 Jul 2020 07:00:00 +0000 https://rigelgroupllc.com/why-are-title-loans-better-financial-options-than-traditional-loans/ Whenever you have financial needs, you start tapping into the best financial solutions. The two main options you can make the most of are quick title loans or traditional car loans. It’s time to find out why people only opt for the first option. Traditional Car Loan Vs. Modern Car Title Loan You should clarify […]]]>

Whenever you have financial needs, you start tapping into the best financial solutions. The two main options you can make the most of are quick title loans or traditional car loans. It’s time to find out why people only opt for the first option.

Traditional Car Loan Vs. Modern Car Title Loan

You should clarify at this point that both options are classified under a secured loan. You use your car or its title as collateral to get a loan. However, there are certain things that make a quick title loan the best financial choice for a person.

Less paperwork – Consider getting a loan from a traditional channel, i.e. a bank, and you will start to imagine all those documents you need to bring there. Getting a loan with a car title, however, is quite convenient, as you don’t have to organize a lot of paperwork. The first document is the original unlicensed car title and the second document is proof of income. The purpose of obtaining this proof is to understand the debt-to-income ratio. Every lender tries to play it safe. Therefore, he is interested whether you can manage the monthly loan payment or not. You may be surprised to learn that many lenders are willing to give you a loan against your car title, even when you are unemployed.

Loan Approval Speed ​​- Everyone knows the frustration of traditional lending. You will have to wait for weeks to get loan approval even if you meet all the conditions. The bank does not grant loans quickly. They take time, and you have to show some understanding of the ins and outs of the loan approval process. What if you can’t wait that long? In case of immediate cash needs, fast title loans work as great lending solutions for individuals. You can expect to get the loan amount on the same day if you choose the best title loan provider.

No need for co-signers – If you do not have a good credit rating and a good credit score, then you start looking for a consignee, and finding it is not so easy. The bank requires a consignee, so when you cannot pay the loan amount, that person will pay the amount you owe the bank. However, fast title loans do not require a co-signer. The lender relies only on the collateral in case of risk of default.

No more credit checks – In a traditional loan, your creditworthiness plays a central role. The bank will perform a credit check to get an idea of ​​your credit score. Your creditworthiness will decide whether the car loan will be approved or not. Contrary to this, fast securities lending do not require a credit check. They have little or no impact on your score and credit rating. Regardless of your credit score, a lender is there to help. This means that your bad credit will not be an obstacle for you.

Wrap

People opt for fast title loans because they can avoid the hassle of traditional loans. There is no need to go through the loan approval anxiety of waiting to receive a loan approval call from a conventional lender.

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Max Cash ™ Title Loans Analyzes the Challenges of the COVID-19 Effect on the Securities Lending Industry https://rigelgroupllc.com/max-cash-title-loans-analyzes-the-challenges-of-the-covid-19-effect-on-the-securities-lending-industry/ https://rigelgroupllc.com/max-cash-title-loans-analyzes-the-challenges-of-the-covid-19-effect-on-the-securities-lending-industry/#respond Tue, 28 Apr 2020 07:00:00 +0000 https://rigelgroupllc.com/max-cash-title-loans-analyzes-the-challenges-of-the-covid-19-effect-on-the-securities-lending-industry/ [ad_1] TEMPE, Arizona., April 28, 2020 / PRNewswire / – Title Deed Lenders United States are currently suffering a decline of 69% and up to 90% in other parts of the country. Pawn shops are experiencing unprecedented growth as Americans attempt to sell property for cash. Due to this car title loan, lenders have adapted […]]]>


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TEMPE, Arizona., April 28, 2020 / PRNewswire / – Title Deed Lenders United States are currently suffering a decline of 69% and up to 90% in other parts of the country. Pawn shops are experiencing unprecedented growth as Americans attempt to sell property for cash.

Due to this car title loan, lenders have adapted to everything online, but you will still have to use your cell phone to take pictures. Online title lending is here to stay. “Lenders are changing to help people comply with stay-at-home orders and avoid contact,” said Fred winchar, president of Bolt Loans and A maximum of moneyâ„¢ securities lending. “Securities lenders go out of their way to lend money, but they have challenges they’ve never seen before.”

Typically, title deed lenders generate income from individuals making payments on their loan, as well as occasionally repossessing vehicles from deferred loans. However, most lenders prefer to derive the majority of their income through payments, as the repossession of the vehicle comes with other extended expenses such as storage, security or disposal of the vehicle, if applicable. . Also seeking to avoid reputational damage, most title lenders are more reluctant than ever to repossess vehicles.

People who can usually turn to title loans as a practical short-term financial emergency solution can no longer receive approval because they no longer have valid proof of income. Since the ability to repay the loan is a documented requirement for title loan approval, the increase in the number of unemployed Americans has made it difficult for the title lending industry to accept loan applicants at its usual rate. Property title lenders want to lend. This is what they do. They are not in the business of giving money away without it coming back at some point.

Along with approval rates, loan amounts financed have also declined significantly for the securities lending industry. According to Fred winchar, President of Max Cash ™ Title Loans, “The average loan amount is now around $ 900, whereas before the average was around $ 3,500. “The current combination of low approval rates and low amounts funded has created a cash flow problem for many title lenders, leaving them with limited income to give back to the public through additional loans. While some are small. companies have closed their doors for good, many more are struggling to find qualified customers and stay afloat financially.

In response to this economic downturn in the industry, securities lenders still in business have had to find ways to adapt. Since lenders must Something rather than nothing to stay in business, small loans have become essential to sustaining the securities lending industry during this time. Some lenders also give “micro-loans”, which are as low as $ 100 and make the process all online. Other lenders have started working with banks to create a new loan product where the funding is held by the bank rather than backed by the securities lender that handles the loan.

Other auto title loan lenders have attempted to alleviate the problem by implementing a process in which the monthly payment decreases due to a continually falling interest rate. Some of these types of loans have the ability to drop to some of the lowest interest rates the securities lending industry has ever seen. In addition, some auto securities lenders only approve applicants who are extremely low risk, which is not the typical clientele typically served by the securities lending industry. These low risk, limited candidates now have the opportunity to profit from falling interest rates and potentially benefit from industry difficulties.

The securities lending industry recently adopted procedures to make doing business as secure as possible, such as online applications, processing and payments, lenders collectively struggle to remain financially stable in these unprecedented times.

As always, Max Cash â„¢ Title Loans encourages you, friends, and family to stay safe and healthy by complying with the CDC’s recommendations to stay home and practice social distancing.

Stay Safe, With Your Family of Max Cash â„¢ Securities Lending, https://www.maxcashtitleloans.com/

A maximum of moneyâ„¢ Securities lending
A maximum of moneyâ„¢ Title Loans, owned by Tradition Media Group, LLC, is a proprietary agency that uses an extensive network of lenders to help clients access securities lending services. A maximum of moneyâ„¢ Title Loans manages the processing of securities lending and the execution of sales to clients and can act as a broker for loans on a case-by-case basis.

CONTACT: Fred winchar, 1-877-958-1146, [email protected]

SOURCE Tradition Media Group

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