Title Loans in Maryland, New York

Understanding title loans in Maryland and New York: Everything you need to know

If you find yourself in a difficult financial situation, you may need to consider some options that you wouldn’t have thought of before. Title loans are one such option that’s becoming increasingly popular, but what exactly are title loans and can you access them in Maryland and New York? Here’s everything you need to know.

What are title loans?

A title loan is a type of secured loan where the borrower uses their vehicle as collateral. Essentially, it’s a loan against the title of your car, truck, or other vehicle. To access a title loan, you’ll need to own the vehicle or have enough equity in the vehicle to make it a worthwhile asset for collateral.

How do title loans work?

To get a title loan, you’ll first need to find a lender that offers this type of loan. It’s important to note that not all states allow title loans, and New York is one of them. However, title loans are legal in Maryland, as well as in many other states. If you’re in Maryland, you’ll need to provide your lender with:

• The title of your vehicle
• Proof of income
• Proof of insurance
• Your driver’s license
• Proof of residence

Once your lender approves the loan, they’ll give you the money you requested, and they’ll become the lienholder on the title of your vehicle. The lienholder has the legal right of ownership of the vehicle during the loan’s tenure. After you pay off the loan and interest, your lender removes the lien from the title, and you own it outright once again.

What are the benefits of title loans?

Title loans are an option for people who have low credit scores and can’t get traditional loans. They usually have fewer application requirements, and because they’re secured loans, they have lower interest rates compared to payday loans and other types of unsecured loans.

What are the risks of title loans?

The main risk of title loans is that you could lose your vehicle if you default on your loan. Title loan lenders have the right to repossess your vehicle if you don’t make payments on time. Also, it’s important to note that some title loan lenders have high-interest rates, which could make the total amount you repay significantly higher than the amount you borrowed.

Interesting Facts and Statistics about Title Loans in Maryland and New York

• According to data from the Maryland Department of Labor, Licensing and Regulation, the state’s title loan volume decreased by 18.25% from 2019 to 2020.
• As of today, there are no title loan stores in New York. Title loans are illegal in the state, meaning there are no direct lenders in this category.
• In Maryland, borrowers of title loans can borrow up to $2,500 or a maximum of one-third of the vehicle’s value, whichever is lower.
• Research shows that around 20% of Americans take out title loans annually, and approximately 80% of these loans are renewed or rolled over, causing borrowers to pay even higher interest rates.

Apply Now!

If you reside in Maryland and meet all the application requirements for a title loan, TheGuaranteedLoans can connect you with some of the best title loan lenders in the state. We’re a loan connector service that helps you find reputable lenders in your area. We are not a direct lender, but we make it more accessible for you to connect with one. To start the process, fill out the online application form on our website, and we’ll match you with multiple lenders who fit your loan requirements.

Please note that title loans are not legal in New York, and as a loan connector service, we do not facilitate or arrange loans in the state.

The Bottom Line

Title loans in Maryland and other regions can be an excellent option for those who need access to quick cash and own a vehicle worth some value. However, like any other type of loan, it’s essential to evaluate the pros and cons and make sure you can pay back the loan before you sign up. By familiarizing yourself with how title loans work and choosing the right lender, you can leverage this type of loan and address your financial needs responsibly.