Key takeaways about title loans in West Palm Beach, FL
What are title loans?
Title loans are secured loans where borrowers use their vehicle title as collateral. In exchange for a loan amount, the lender retains the title of the vehicle. If the borrower defaults on the loan, the lender can legally repossess the vehicle and sell it to cover the loan amount.
Are title loans legal in California?
Yes, title loans are legal in California, but they are subject to specific regulations and restrictions.
How much do title loans cost?
Let's say you needed $2,000. This is how you'd pay it back if you chose to pay over 12 months:
Title and Payday Loan information in the Comparison tabled is based on the following CFPB Reports (1)(2)
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Reconsider getting a title loan
5 reasons you shouldn't get a title loan
You might be looking for options for a quick loan. Here are 5 reasons to reconsider that option:
- High-Interest Rates: Title loans are known for their exorbitant interest rates, which can often lead to borrowers paying much more than they originally borrowed. [1]
- Predatory Lending Practices: Some title loan companies are known for their predatory practices, including misleading terms and hidden fees. [2]
- Debt Trap: Due to the high interest rates and short repayment periods, many people struggle to repay their loan in full. This can lead to a cycle of taking out more loans to pay off the original one, creating a debt trap that can be difficult to escape. [3]
- Negative Impact on Credit Score: While some lenders might not check your credit score before issuing a title loan, failing to pay it back could negatively affect your credit score. [4]
- Expensive Solution for Temporary Problem: While a title loan might seem like a good solution for immediate financial needs, the long-term costs can far outweigh the immediate benefits. Other options, such as personal loans, credit card cash advances, or even borrowing from friends or family, may be less expensive in the long run.
[1] https://www.yendo.com/compare-yendo
[4] https://www.myfico.com/credit-education/whats-in-your-credit-score
Alternatives to Title Loans in Los Angeles
Considering the potential pitfalls associated with title loans, it's worth exploring alternatives:
- Payday Alternative Loans (PALs): Some credit unions offer PALs, short-term loans with far lower interest rates than title loans. Membership of the credit union is generally a prerequisite to apply.
- Personal Loans: Despite having a low credit score, some lenders offer personal loans to such individuals. The interest rates may be higher than conventional loans but are generally lower than those of title loans.
- Credit Counseling: Numerous non-profit credit counseling agencies can provide guidance and resources to help individuals manage their debt and improve their financial health.
- Peer-to-Peer Lending: This is an alternative where borrowers can seek loans from individual investors or peers online. The interest rates are generally lower, and the loan terms can be more flexible.
What's Yendo?
The Yendo Card
Yendo is the first credit card that's backed by the value of your car. The card can provide access to credit for those who might not be able to qualify for other credit cards. It's a real credit card, powered by Mastercard, that provides credit limits from $450 - $10,000, depending on your value of your car amongst other factors, that can provide people with access to ongoing funds. So, rather than having to re-apply for loans, for example, you can access funds up to your credit limit on an ongoing basis and, with responsible usage like on-time payments, build your credit too.
Features & benefits
- Credit limit - access up to $10k in credit
- App - the Yendo app let's you manage your account, wherever you are
- Virtual card - access a portion of your credit limit prior to getting your physical card in the mail with the Yendo virtual card. You can continue to use your virtual card even after your physical card arrives as well
- Cash advances - ability to do cash advances on your card
- Credit building - with responsible usage, you can not only have access to ongoing credit, but also build your credit for potential future financial options
Reviews
Check our review page for more detailed reviews from our users.
FAQs
Yes, Yendo helps you build your credit. We report to Experian, Transunion and Equifax credit bureaus.
Yendo Credit Cards have credit limits ranging from $450 up to $10,000. Your credit line depends on the make, model, mileage, and condition of your vehicle in addition to your ability to repay.
You have 25 days after the end of your monthly statement to make a payment. You can make payments at anytime, and you will need to make a minimum payment of 5% of your statement balance or $50 (the greater of). We're here to help, so if you do need assistance making your minimum monthly payment, please give us a call.
We don’t check credit for pre-approval and you can get approved if you meet our approval criteria. Our mission is to offer affordable credit access to everyone, regardless of their credit score.
Yendo customers can have access to their virtual credit card within 30 minutes of completing the approval process. The virtual card can be used online or with Apple, Google, or Samsung pay. A physical card will be mailed to you and typically arrives in 5-7 days.
We will always work with you to try to establish a plan that works with your situation. However, as a lienholder, we can exercise our right to recover an outstanding balance, but this is our last option. Keep in mind that with Yendo, your minimum monthly payment can be more affordable compared to other alternatives like title loans.
You can get your title back at any time by paying off your balance and giving us a call to close your account. Once we verify that your balance is $0, Yendo will close your account and remove its lien from your title. We will then release the title to you. Or you can keep your account open with a $0 balance and pay no interest, so you can have continued access to your credit card when or if you wish to use it.
While your official due date is 25 days after receipt of your previous monthly statement, you can pay off all or a portion of your balance in advance at any time. The best part? If you pay your statement balance on or before the due date every month, you’ll pay zero interest on purchases. In the event you don’t pay off your full balance, our minimum payment is 3% of your statement balance or $50, whichever is greater. Please note that penalties, such as late fees, may increase your minimum payment requirement.
If your balance exceeds your credit limit, your account is overlimit. You will need to make a payment that brings your balance below your credit limit and make at least a minimum payment to unblock your card.
