Key takeaways about title loans in Florence
What is a title loan?
If you're considering a title loan - perhaps considering a TitleMax or Loanmart title loan - be sure to research and understand what they are, how they work and how much they might cost you.
Title loans are often short-term, mostly high-interest rate lending sometimes used by individuals needing immediate cash for unforeseen situations. The distinguishing feature of this loan type is its dependency on the borrower's car as collateral. The lender is legally entitled to take possession of the borrower's vehicle if the loan isn't repaid. To obtain a title loan, an applicant generally needs to go through a process that requires them to provide their car title, identity proof, and proof of income.
After this, the lender evaluates the car's market value to determine the loan amount, generally a proportion of the car's total value. Title loans carry high-interest rates, making them a costly borrowing option. Furthermore, these loans come with substantial risks due to their collateral nature—the borrower's vehicle could be taken if they fail to make timely payments. This risk should be balanced against the urgent need for cash.
Thus, title loans should be used with caution and seen as a last-ditch option.
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:
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Reasons to say No to a title loan
5 reasons you shouldn't get a title loan
You might be looking for options for a quick loan. Perhaps you're considering TitleMax in town. 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. 
- Predatory Lending Practices: Some title loan companies are known for their predatory practices, including misleading terms and hidden fees. 
- 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. 
- 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. 
- 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.
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
“Gracias Yendo, por dare la oportunidad de restablecer mi crédito entre otras cosas, estoy encantada con lo fácil que es de usar y por la forma de asequrar mi portal, me da una paz saber que nadie que no este authorized va a poder usarlo, sin contar además del bajo interés a pagar... Sin duda alguna es digno de recomendar!!”
“Yendo was a great choice. It was easy to apply and no matter your score you can be approved. Brian reached out over the phone and led me through the application and even made a trip to meet me to get all set up. They report to the credit bureaus. I’m looking forward for my Yendo account to up my score.”
“You guys, this company is a solution to your debt problems. Instead of getting a car title loan with 300% interest, get a credit card secured by your car title! What a brilliant idea! Just download the
Yendo app and get started today.”
“Awesome monthly payments that are far more reasonable than a lot of title places' low rates, highly recommend Very impressed process was quick and easy definitely wouldn't go anywhere else.”
"The application process was seamless! And fast! Got approved in minutes and had access to my card via Apple wallet. Card was sent in the mail right away."
“Gracias Yendo, por dare la oportunidad de restablecer mi crédito entre otras cosas, estoy encantadacon lo fácil que es de usar y por la forma de asequrar mi portal, me da una paz saber que nadie que noeste authorized va a poder usarlo, sin contar además del bajo interés a pagar... Sin duda alguna esdigno de recomendar!!”
“Yendo was a great choice. It was easy to apply and no matter your score you can be approved. Brian reached out over the phone and lead me through the application and even made a trip to meet me to get all set up. They report to the credit bureaus. I’m looking forward for my Yendo account to up my score.”
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.