If you don't pay back your car title loan and they take the car, will it go on your credit?
A title loan is very sketchy. They really aren't a lending company. They actually BUY the car for a certain amount. You sign over the title to them and they place a hold on it for a certain amount of time. They let you drive the car for that time and you can buy it back before the deadline. At a higher price, of course. if you don't, they own the car and have the title. You can bring the car to them. Or they can send a tow truck to get it. BUT, if the car is damaged in any way, they'll charge you for the repairs. It's in the contract. If you don't pay it, they'll go after you through collections or even Small claims Court. And if the car isn't at your home or work address, they can also charge you search and seizure fees. Even if you tell them where the car is. It's not their responsibility to find the car. It's yours to return it back to them. And in the same condition that they bought it. All that is in the contract too. Those place are more like loan sharks, in reverse. And they can hurt your credit if it goes to collections. Your husband is on the hook until he brings it back to those thieves. They don't like getting played and they let you know it.
How much would a 55,000 car be every month?
Well, that depends on your credit score and credit history. If you have good credit, previous auto or mortgage loans, very little other debt, make at least $75,000 a year and about $6,500 a month, you may be able to get a payment of about $1200 a month. You see, to get loans that big, lenders want a LOT of credit history and a PROVEN ability to pay. Even if you have had a previous car loan of say, $25,000, even that may not qualify you for a loan this big. A few things lenders look for when making a decision like this: * At least two years of continuous employment * No previous derogatory credit * Previous large loans such as other autos or mortgages * Financing less than 75% of your annual salary * Monthly payment not more than about 20% of your monthly income * Low overall debt to income ratio The above are general guidelines, and will vary from lender to lender, but as a Finance Manager for a high-line car dealer (BMW, Infiniti and Maserati) I can tell you, you gotta be bullets to get this kind of loan. Here's a rule of thumb for quick estimates of car loan payments (assuming excellent credit): Figure that every $5,000 you borrow on a 60-month loan will cost you about $100 a month. So, financing $20,000 including sales tax, title fees, etc will give you a payment of about $400. A $25,000 loan will be about $500, etc. So, a Land Rover costing $55,000 would require financing of $59,000 - $60,000 depending on your state tax rate and title fees, giving you a 60-month payment of about $1,200 a month. BTW, a Land Rover is a great vehicle. Expensive as all get-out to repair and maintain, but a great vehicle, none the less. Hope it works out for you.
Has anyone ever used a car title loan company?
Please!!!! for the love of GOD; don't do it!!! it will be one of the biggest mistakes of your life. Below is a letter that I wrote to a local news anchor, requesting help: Hello, My name is xxxxxxxxxx; I live in Columbia, SC. and although this is my first time doing this. I feel the need to ask. Have you guys done any research about the current situation with the Title Loan Companies in Columbia?. I don't know if you're aware, or not, but these Title Loan Companies are ripping people off. They're charging interest up to 360% and giving astronomical late fees. Making it impossible for anyone to repay these loans. Unfortunately, I'm one of those people, and I need some help. I received a notice to cure default from "xxxxxxx xxxxxxx TITLE LOANS". According to the letter, my last date for payment is 10/09/2006. In the body of the letter it states that if I make my payment by that date "you may continue with the contract as though you were not late". Well, I called them and explained that I will be coming in on Friday 10/06/2006 with my payment of $214.00. They said that I had to pay $375.00 for late fees. That's almost $161.00 worth of late charge. This is ludricous!! they are not allowing me to make my regular payment and said that they do not take partial payments. These people are getting away with this, and nobody is doing anything about it. I'm at a lost, please help me!. I know of many people in my same situation. Needless, to say I paid $3998.00 for an $800.00 loan and still when I got tired of paying them, I stopped payment and they repossessed my car. When you make a payment that payment is not applied towards your loan, it's applied towards the principal of the loan. That's how they make their money...so with that being said. I beg you please don't put yourself in that predicament. Think about it! ni ni :-(
When you are late on a title loan payment - how soon do they come repo your car?
Yikes, I don't think being late is a reason to repo your car. Behaving in a way that shows that you will no longer pay, like not paying in months despite notices, is a reason to repossess. You need to call your lender to find out specifics. I forgot to pay for my car last month... I thought I had, but I hadn't... I got a notice in the mail and I was SHOCKED! I sent in the money the same day (and the late fee) and nothing else happened.
What is it like to have a car title loan?
The loan company will loan you the money based on how much they think you can afford to pay back each month. You do not get to choose that, but if you cannot afford as much as they are willing to loan you, get less. Do not go to them for a loan until you know how much you can comfortably afford to pay back each month. Check the paperwork or ask whether it is a fixed rate of interest for the life of the loan, or adjustable. Adjustable means the rate very likely could go up. Also find out whether there is a 'balloon payment' due at the end, which means they make your monthly payments lower, but at the end you have a huge amount of money due to them in the one final payment to pay off the loan. Be sure you understand ALL the details about how much you are borrowing, what the interest rate is, due dates for payments, how they want the payments submitted, what it will take to pay off the loan and get the title back, etc. They just take the title of the car until you pay off the loan. Usually you get statements or some kind of coupon book for your payments. You have to be absolutely dedicated to paying them back and paying on time, or they will come take your car.
I'm paying $100 monthly on a $500 loan for 3 years, is this legal? (car title loan)
First, I am not a lawyer and this is not legal advice.Second, you need a lawyer and some good legal advice. You won't find them on Quora. Google "California legal aid" to find pro bono (free) legal clinics in your area, and be proactive and persistent in obtaining legal advice from them as they will almost certainly be overworked, predatory lenders being the scourge that they are.California laws on usury (excessive interest - and the interest you're paying is incredibly usurious!) are complex and biased against desperate borrowers and toward "exempt" organizations with the political clout to legally abuse the poor. You may well be stuck, but I wouldn't give up seeking actual justice until you're sure.If you are indeed stuck, as confirmed by a lawyer, then your only recourse is to pay the scoundrels what you owe them. This means as many hours of work at as many jobs as you can possibly find while spending as little to live as you can. It hurts more the longer you drag it out. Ripping off the bandage in one swift scream is preferable to me than pulling out one hair and opening one scab at a time over and over and over.Finally, remember how you feel right now. The next time a title loan, payday loan, or other predatory loan seems like a good idea, remember this feeling. It will help to motivate you to deal with a short term challenge in the future without creating a long term disaster like this one.A key strategy toward that end is to work on making yourself more valuable in the job market. Constantly meet new people and learn new skills. Always arrive to the job site 15 minutes early, leave 15 minutes late, and work hard with pleasant enthusiasm the entire time you're there. Ask lots of questions of anyone who knows the answers. Seek out a career mentor in a field that interests you to guide you in entering and moving up in that field. Set a goal to build up your income without changing your lifestyle until you can save 15% of every paycheck, so that you never need to borrow again.And once you've made it - and with persistence and hard work you will make it - remember to reach back and help those who are then in your situation today.
Why is my car loan not going lower?
Usually for the first year of a car loan, It is commonly perceived that you are paying interest only and the principal will go down but not a real noticeable amount. If possible (and I know it is hard to do now-a-days) make an "extra payment" or a "principal only payment" and that should have you dropping principal balance right quick like.
What is worst, a repo or always being late on your payments?
Taking the vehicle and selling it, then taking out a personal loan is a good idea; however we won’t be able to get another loan….my husband’s credit is shot. My husband didn’t co-sign the second time….his sister refinanced the vehicle without his permission or consent. I wondered if this is legal, but the finance company said it was because she is on the loan. At this point I’m not sure if it would be better to have the repo, deal with the consequences, and start re-building his credit from this point, OR if letting her continue to make late payments for the next few years (and hopefully the vehicle being paid off) and my husband having poor credit but no repo on his credit. Which is better? Thanks for the advice regarding the insurance. I hadn’t thought about that.
How do I ask my finance company to lower my APR on my auto loan? It's at 26%. I've been early and over on all the payments during the 8 months I've had this loan. I don't want to change companies.
Why in the world would you not want to change companies? I am guessing that you got the loan you now have because of credit issues. Assuming they’re fixed now, and that any derogatory entries on your credit report are 8 months older and you don’t have any new ones, you may be able to refinance and get a better loan from a different institution, such as a bank or credit union.From your current lender’s standpoint, 8 months in not a particularly long track record—but a different lender may be willing to refinance your loan with a lower rate.