When financial hardship hits, many people in Ohio might feel that they simply have no options, no access to a loan, and no hope to overcome what might otherwise be a temporary financial hardship. This is almost always not true, however. Short-term loans and title loans, in particular, can be a useful way to overcome temporary financial distress and make timely payments toward monthly bills and other obligations. These loans have quite a few differences from long-term installment loans, many of which serve as a benefit to borrowers who need near-instant financing to meet their financial needs.
Title loans in Ohio aren’t like more traditional installment loans from major banks and credit unions. Instead, these loans offer a secured source of lending that is tied to a borrower’s vehicle title. In most cases, the loan amount that a customer qualifies for is based on the value of their vehicle, adding greater peace of mind to the approval process and making it easy to approve a loan in short order.
Unlike traditional, long-term loans, title loans are typically offered to Ohio borrowers without a traditional credit check and without regard for FICO scores. Instead, the borrower’s current income, employment status, and vehicle valuation, serve as factors that are considered when originating the loan. Repayment is quick, typically within 30 days, and allows customers to get back on their feet without years of payments, accrued interest, and other considerations.
Title loans offer a greatly simplified application process in comparison to their counterparts at big banks. To start the application, prospective borrowers will need to enter personal contact information so that they can be reached by a loan representative. This includes a mailing address, zip code, full legal name, and a phone number that can be used to contact the customer about their loan.
Vehicle information is also a crucial component of the loan process and requires the make, model, year, and current mileage of the car being used to secure the loan. Once an application has been submitted, an instant estimate of the loan’s balance will be generated. A few minutes later, after reviewing the application, a loan representative will contact the borrower to confirm key details and formally approve the loan for disbursement. The funds are typically available the next business day.
When considering title loans in Columbus and the broader metro area, Ohio borrowers should keep in mind a few state regulations. First and foremost, Ohio state law bans unsecured, short-term loans. Secured loans, like title loans, are permitted. A quick in the state’s financial regulations requires that most title loan companies work with a “middleman” when lending. That means most loans are handled by an outside company that communicates with both the lender and the borrower simultaneously.
Financial hardship can cause a significant amount of stress, but title loans in Upper Arlington are designed to get borrowers back on their feet as quickly as possible. The application process is simple and very quick, approval often happens within just a few hours, and the loan funds are often ready for withdrawal from a bank account the next business day.
In addition to the speed with which borrowers can resolve their financial difficulties and move on with their lives, title loans offer the additional benefit of being repaid in short order. Most people repay their loans in a month or less, with no long-term commitment to ongoing payments, interest charges, and other fees. This is why the title loan is such a positive experience for borrowers experiencing a financial hardship.