Title Loans in North Dakota

In the state of North Dakota, title loans are legal under certain circumstances. Title loans work by allowing the borrower to use their vehicle as collateral for a loan they will have to make payments on until they repay it in full. Borrowers must have a car worth at least $1,500 or the equivalent cash value of their vehicle and be earning an income at least three times higher than their monthly car payment. You still need to consider that title loans may not be available for you if you live in one of seven North Dakota counties where lenders are not authorized to operate.

The interest rates for title loans in North Dakota can be steep. You will have to pay between 4 and 14 percent on your loan, so make sure you can afford it. The average loan term is three months, and the average APR is around 133%. You will still have to pay all your bills, so if you need a loan for other things like paying off medical debt, payday loans may not be the answer.

Title loans in North Dakota are relatively simple, but they can be costly. Make sure you are willing to take out one before doing so because once you sign your name, you’re stuck with it until the loan has been paid in full.

How do Title Loans Work in North Dakota?

Title loans are loans that you can take out on your car. If there is valuable equity in your car, you could borrow a substantial amount of cash by having the lender hold the title to your vehicle until you repay it, plus interest.

The process works like this: You head out to one of the many companies that offer title loans in North Dakota and fill out an application. They will then let you know if you qualify for a loan based on your vehicle and income. You sign a legal contract agreeing to pay back the loan plus any interest over a specific period.

You then get your cash. The lender will put the money into your checking account and hold on to your vehicle title until you repay the loan. It is why title loans are called “collateral” loans. If you fail to pay the loan on time, you risk losing the car. If you pay off the loan early, you can stop making payments and get back your title by visiting your state Department of Transportation office and paying $10.

Are Title Loan Laws in North Dakota Strict?

Title loans are legal in North Dakota, but they are heavily regulated. This protects consumers from the high interest and fees that come with these loans.

To operate in North Dakota, title loan lenders must check your credit and verify that you have a car worth at least $1,500 or the cash value of your vehicle. You also need to earn enough to make a monthly car payment of at least $200.

Companies can charge up to $19 per every $100 they lend you (a maximum of 26%) and can lend you only up to 90% of your vehicle’s value. This means that $1,000 in loans may cost you as much as $2,590 over a year. And remember, this is interest only.

Aside from requirements that borrowers fulfill to take out title loans in North Dakota, there are other rules:

You are limited to one title loan at a time and cannot receive title loans more than twice per year. You cannot get more than $1,000 in loans at once and cannot receive title loans at more than one company if you already have a high rate of one outstanding on your credit report.

You also can’t get a title loan if you are in active bankruptcy or if you were convicted of certain crimes.

If you violate these rules, the company can cancel your loan or stop providing you with title loans altogether. And if you complete the agreement after a loan is already in place, it will still be legally binding.

How much can you get for a title loan in North Dakota?

The amount you can borrow in a title loan will depend on your vehicle, income, and credit rating. Most auto title lenders will allow you to borrow between $1,000 and $10,000 on your car. The absolute maximum amount that you can borrow is $30,000.

On average, title loans in North Dakota will cost you about $5,000 over a year. Although that may sound like a significant amount, it is cheaper than paying for car insurance premiums or student loan payments.

If you need a loan in North Dakota and want to take out a title loan, be sure to shop for the lowest rate available. Your best bet is to contact several companies and compare loan rates before choosing one. You can also try comparing interest rates by state or city to find the best option for you.

Also, be aware that car title loans can cost you a lot. You don’t have to agree to the loan without reading it and understanding all the fees and rules involved. Make sure you do your research before signing anything.

North Dakota Title Loan Term Length

The average term length of a title loan in North Dakota is three months. The maximum term length is 12 months. Your lender can offer you longer terms, but they cannot go beyond the maximum allowed.

How to Get a Title Loan in North Dakota

If you are looking for a title loan in North Dakota, start by reviewing your options. Some companies will give you free quotes on their website, and some have storefronts where you can walk in and make an instant decision. Another option is to find out if anyone you know has ever taken out one before. You don’t have to do all the work yourself, so see if someone you trust can give you any advice or information about their experience.

A good place to start looking for a title loan company is online. Several companies offer payday lending services, so you may be able to find one that will work for you.

If you prefer asking around in person, you can find customer service numbers and locations on the websites of many companies. It is also a good idea to talk to family members or friends who have taken out title loans and see if they can recommend any companies.

You should investigate each company thoroughly before choosing one to apply with. Although many places offer title loans in North Dakota, not all of them will allow you to get your money as quickly as possible or at the lowest interest rate. You should look for a company that offers quick approval and has a fast turnaround time.

Watch out for hidden fees, especially when you compare rates. Sometimes a company will charge you more than they say the loan is worth, meaning that you would actually make money if you paid off your loan early. And if the interest rate is high, ensure it is not so high that it will quickly eat up all of your cash.

It also pays to compare multiple companies so you can see who offers better terms and interest rates. It’s always good to know what kind of lender a company is when dealing with them. Make sure to ask about their licensing and legal standing in North Dakota. If a company has complaints against them, read the reviews and ensure they have been resolved properly.

If you get a title loan in North Dakota from a company you found online, there is no need to fill out lengthy paperwork. Your application will be handled quickly, and you will be able to sign your agreement immediately.

What do I need for a title loan in North Dakota?

When you take out a title loan in North Dakota, you must provide multiple documents and information to the lender. You can usually submit your paperwork by fax or email, but if you visit a storefront, you may have to go through them in person.

If possible, gather all of the required information before applying for a title loan. This way, you won’t waste time gathering documents after your application has been approved. 

Here’s what you will need:

• An active bank account.
• A valid driver’s license or state-issued ID card.
• Proof of residences such as a utility bill or phone bill.
• A vehicle you own with a clear title (the lender will not accept a loan agreement on a leased or rented car).

You may also have to provide an insurance policy, bank statements, and pay stubs for your two most recent work weeks. Be sure to bring this information with you to the lender. You may not be eligible for a loan if you do not have all the required documents, so it is best to be prepared before applying.