New Mexico Car Title Loans
If you are struggling to obtain credit, then you may find that New Mexico title loans are the right option for you. Let us tell you a little bit about what they are about.
What are title loans?
Title loans are loans that you will take out against your vehicle. This could be a car, motorcycle, or a boat (or anything with a title, for that matter). The title will act as collateral on your loan. This means that if you do not pay off your loan on time, your vehicle will end up being seized.
Can you still use your vehicle?
You will not be physically handing over your vehicle when you take out a title loan. You will only be handing over the title to the vehicle. This means that you will continue to be able to drive your vehicle for the duration of your loan. The only time that you will need to hand your vehicle over is if you fail to pay back the loan on time. More on that in a short while, though.
How much can you borrow in New Mexico?
This is going to be fully dependent on the value of your vehicle. You aren’t going to be getting the full value of your vehicle, though. You are going to be getting a fraction of it.
Title loans are designed to lend you money against your vehicle. It is a safeguard for the vendor to know that if everything goes wrong, they will end up getting their money back somehow. This means that they can’t lend you more than your vehicle is worth, nowhere near it. They can only give you an amount which will ensure that they are able to make a profit should you not pay your loan back on time.
How much you can get for your vehicle will vary from company to company. This is why it is important to do your own research when it comes to New Mexico title loans, although the value you get will be quite similar from company to company.
Remember; the interest rates on these loans are going to be a bit higher than your traditional loan. They are never going to be as high as the interest rate that you may get on a payday loan, mostly because you are going to be putting up collateral on your end, but as you will discover soon, these loans are loans that are somewhat of a ‘last resort’ for many people. This means that they will always be a bit higher.
What do you need when you obtain a title loan?
Surprisingly, not a whole lot. You will, at the very minimum, need the title to your vehicle and some sort of ID. Dependent on which company you are working with, you may require more information.
Remember; due to the type of loan that you are applying for here, you will not need to submit yourself to a credit check. This means that you do not need to worry about any of that. You won’t need to supply your bank account details etc. As long as the company has the title to your vehicle, then they are going to be fine.
Who are title loans for?
Title loans are for those who may struggle to get a traditional loan. Because no credit check is carried out on this type of loan, you do not need to worry about how poor your credit rating is. Remember; this is a type of loan which is somewhat of a last resort. It is for those who are unable to get credit anywhere else.
It is important to note that because you do not need a credit check carried out when you take out a title loan, you will need to pay a slightly higher interest rate than you may get with a traditional loan. This is because even when you are putting the title to your vehicle on the line, the company that is lending you the money is still taking a lot of risks.
It should probably go without saying that you will need to own a vehicle in order to qualify for a title loan. This means that you need to outright own it, not merely lease it. If the title to the vehicle is not in your name, and you can’t prove that you own the vehicle, then you are not going to be able to qualify for a title loan on it.
Don’t forget; these loans are more for those who are interested in short term borrowing of money, and small amounts at that. If you are not able to pay the title loan money back in a month or two, then this is not the right type of loan for you.
What happens if you default
The vehicle will end up being owned by the title loan company. You will lose it. Within a day or so, they will ask you to turn your vehicle over to them.
This is not to say that if you can’t pay your loan back on time you will lose your vehicle. If you find that you have issues making the full payment, then talk to the lender before the loan expires. They may ask you to pay back some of the capital on your loan and they may allow you to extend it. However, we must stress that this is something that absolutely must be asked in advance!
Best companies in New Mexico
The best companies for title loans are those which offer good interest rates and favorable lending terms. You may need to shop around New Mexico title loans a little bit to find what you need. It is always advised that you search for your title loan online. The competition when searching for a loan online is much higher, which means you have a better chance of getting a good deal.
Search for Title Loans in NM
- Albuquerque Title Loans
- Farmington Title Loans
- Las Cruces Title Loans
- Rio Rancho Title Loans
- Roswell Title Loans
- Santa Fe Title Loans