When you have a sudden expense such as a medical bill or an urgent need to travel, you’ll need to come up with the money – and fast. This can be a real problem if your savings are small and your credit isn’t in the greatest shape. A title loan may be a good option, as it might provide the funds you’ll need in as little as one business day. And, in fact, car title loans have helped scores of people just like you out of unexpected financial jams.
Before borrowing from a title loan lender, however, it’s a good idea to make sure you fully understand the title loan agreement before you sign it. That’s why ChoiceCash contracts are transparent and straightforward. Plus ChoiceCash loan agents are eager to answer questions about what’s involved.
Here’s what you should know about auto title loan contracts so that you can apply confidently with ChoiceCash today.
What is a Title Loan Contract?
A title loan contract is a legally binding agreement where a borrower uses their vehicle title as collateral to secure a loan. The lender places a lien on the vehicle’s title, removing it when the borrower pays the loan back. The purpose of a title loan contract is to document all terms of the car title loan, and protect both the borrower and lender by setting clear expectations. Simply put, the contract outlines the elements of the deal.
What are the Key Components of a Title Loan Contract?
A car title loan contract typically includes several key components. These elements usually consist of the Truth In Lending Act (TILA) disclosures, which include the loan amount, the interest rate, Annual Percentage Rate (APR), repayment terms, and the loan’s total cost. The additional agreement sections specify the borrower’s vehicle details, outline default conditions, the lender’s repossession rights, other applicable fees or penalties, and define the rights of the borrower.
While individual lenders may vary in their procedures, the contract should ensure transparency, define each party’s obligations, and establish the loan’s framework.
The Key Components of a ChoiceCash Contract
Loan Amount
ChoiceCash customers typically borrow amounts ranging from a few hundred dollars to a few thousand. Depending on their incomes, they can usually borrow up to half of the value of their vehicles.1
Interest Rate
The interest rate is the cost of borrowing money. ChoiceCash interest rates are competitive and tend to be less than payday loan rates.
Annual Percentage Rate (APR)
The APR is the cost of borrowing money, expressed as an annual rate. It includes both the interest rate and the origination fee, if applicable. Borrowers can use the APR to compare loan offers.
Repayment Terms
Usually, ChoiceCash borrowers have several months to pay off their loans.
Loan Collateral
ChoiceCash uses the borrower’s vehicle to secure its loans. The details of the vehicle, including the year, make, model and Vehicle Identification Number (VIN) are itemized in the contract.
Loan Fees
ChoiceCash fees can vary by location and can include origination fees, late fees and charges associated with processing the title and placing a lien on it. We pride ourselves on our transparency, so customers needn’t worry about unexpected fees.
Default
This provision details the conditions under which the borrower is considered to be in default, which means the borrower is not in compliance with the agreed-upon terms of the title loan contract. With ChoiceCash, the main ways a borrower can be in default include not making payments on time, damaging the vehicle, filing for bankruptcy, or not meeting other contractual obligations of the loan agreement.
Insurance and Use of Vehicle
ChoiceCash borrowers are required to keep their vehicle insured, with a maximum deductible that is outlined in their loan agreement. While the loan is active, they must also agree to keep the vehicle in proper running condition, not make any major modifications to the car or truck, and not rent, sell or lease it to others.
Risks Title Loan Borrowers Should Understand Before Taking Out a Loan
Potential borrowers should be aware that while auto title loans can offer quick financial relief during emergencies, such loans do come with risks. One of the biggest concerns is repossession: if a borrower falls behind on payments, lenders have the right to recover the vehicle to pay for the loan balance. This can leave the borrower without transportation and add to financial strain. For planning purposes, borrowers should request a full payment schedule before signing a title loan contract.
Additionally, while ChoiceCash loans do not do so, others may include hidden fees or unclear penalties that can significantly increase the loan’s overall cost. What’s more, borrowers who need to repeatedly refinance their vehicle title loans can sometimes find themselves in challenging cycles of debt.
Ultimately, borrowers who understand the risks before committing to a title loan can make more informed and secure financial decisions.
Why Sign a Contract with ChoiceCash?
ChoiceCash contracts are clearly written and transparent in nature – there are no hidden fees, penalties, or surprise balloon payments. Our aim is to make sure every borrower knows exactly what they’re getting into. We never rush potential customers into taking out a loan, and we have dedicated support staff at 855-422-7402 who are ready to answer any questions.
Also, we simplified our processes to get borrowers the money they need – fast. Borrowers can oftentimes complete our online application in just five minutes and approval can take less than an hour in some cases.1 Customers need verifiable regular incomes and vehicles in their name with sufficient value.1 Borrowers can still drive their cars while they’re making payments and their accounts are in good standing.
Consumers may also still qualify for ChoiceCash loans even if they have bad credit or past credit challenges.1 Although a credit check is part of our process, what matters most is the borrower’s ability to make consistent loan payments. And, over time with ChoiceCash, the borrower’s interest rate may drop – lowering the monthly payment commensurately.2
ChoiceCash borrowers can also choose their funding method: cash pickup at participating money transfer locations, ACH, debit card (if deposits are permitted), check, or wire. They do not need a bank account. Another ChoiceCash benefit is a loan is possible even if the borrower has a few payments left on a vehicle they’re financing, or if they are nearing the end of their existing loan term.
Ready to borrow with confidence? Get a free title loan quote now.
Frequently Asked Questions About Signing a ChoiceCash Contract
Borrowers who may not be familiar with ChoiceCash title loans may have questions they want answered before signing on the dotted line.
What happens if I miss a payment? ChoiceCash may charge a borrower a late fee if they make a late payment. Customers who expect to be late with a payment should alert us of that likelihood.
Can I pay off my loan early? Absolutely. ChoiceCash borrowers pay off their loan at any time – with no penalty. They can also make extra payments or larger payments than required.
Are there penalties in a ChoiceCash contract? Yes, a ChoiceCash agreement includes penalties for missed payments and defaulting on the loan.
What documents do I need? To apply, borrowers need proof of income, proof of residence, a government-issued ID, the vehicle’s title, and vehicle photos in lieu of an in-person vehicle evaluation.
Does the vehicle title need to be in my name? Yes, the title to the borrower’s vehicle needs to be in the borrower’s name.
How can I make payments? ChoiceCash offers multiple ways to make payments, including making a payment over the phone or online, or making a payment at participating money transfer locations.
If you’re facing a financial emergency and you need cash fast, you may want to consider a ChoiceCash title loan. After all, a real bank makes ChoiceCash loans, and they have good customer ratings and are available in more than 20 states.
Apply now for a transparent title loan!