Title Loans in Somerville, Ohio

Understanding Title Loans in Somerville, Ohio

If you need quick cash and have a car, you may be able to secure a title loan. A title loan allows you to borrow money using your vehicle as collateral. These loans are legal and popular in Ohio, including in the city of Somerville. However, it’s important to understand the risks and benefits of title loans before taking one out.

How Do Title Loans Work?

When you take out a title loan, you give the lender the title to your vehicle. The lender becomes the lienholder on your car until you repay the loan according to the agreed terms. In most cases, you can continue using your car while paying off the loan.

The amount you can borrow depends on the value of your car. Lenders usually offer loans of anywhere from 30% to 50% of the car’s value. The loan term is typically 30 days, though it can be longer. If you cannot repay the loan at the end of the loan term, you may be able to roll it over by paying a fee.

Benefits of Title Loans

• Quick access to cash: Title loans are often approved quickly, sometimes within hours.
• No credit check required: Because the loan is secured by your vehicle, your credit is less of a factor in the approval process.
• Possibility of lower interest rates: Because title loans are secured loans, the interest rates may be lower than those of unsecured loans such as payday loans.

Risks of Title Loans

• High interest rates: Even though they may be lower than some other types of loans, title loan interest rates can still be high.
• Potential loss of your car: If you are unable to repay the loan according to the agreed terms, the lender can repossess your car. This can be devastating for those who rely on their car to get to work or school.
• Costs can add up: If you roll over the loan or keep extending the term, the costs can add up and result in you paying more interest in the long run.

Interesting Facts and Statistics on Title Loans in Somerville, Ohio

• According to a report by the Center for Responsible Lending, Ohio has one of the highest average interest rates on title loans in the country, at 25% per month.
• In 2019, Ohio legislators enacted a new law that reduced the maximum interest rate on title loans to 28% and limited loan terms to one year. However, lenders are still finding ways to charge high rates.
• In 2018, Ohioans took out on average a total of $186,000,000 in title loans, according to the Ohio Department of Commerce.
• Research from the Consumer Financial Protection Bureau found that one in five title loan borrowers end up losing their car to repossession.

Apply Now

If you’ve weighed the risks and benefits and have decided to apply for a title loan, TheGuaranteedLoans can help. Our online application process is quick and easy. Remember that we are a connector service, not a direct lender. We will help connect you with potential lenders who can offer you a loan based on your needs and qualifications.

Apply now and get the cash you need.