Checkmate Title Loans: What You Need To Know

Checkmate offers title loans, which are loans that use a borrower's vehicle title as collateral. The company has been in business for over 30 years and operates in Arizona, California, Washington, Colorado, and New Mexico. Checkmate provides competitive rates and a transparent loan process, and its locations are open 6 days a week. The loan amounts for title loans range from a few hundred dollars to $25,000, depending on the state and the value of the vehicle.

Checkmate's title loan requirements

Checkmate offers title loans with varying requirements. The title loan is a fast and easy solution for people who need cash. To obtain a title loan from Checkmate, you must meet the following requirements:

Collateral

Collateral is required for title loans, and it must be a free and clear title to a vehicle. This can include cars, trucks, RVs, and motorcycles. The vehicle will be appraised as part of the approval process to determine its value.

Identification

A form of personal identification, such as a passport, driver's license, or any other valid government-issued ID, is required. This helps lenders confirm your identity, recognize you, and match your identification with the owner of the vehicle.

Contact Information

Basic personal contact information, such as your phone number, address, and email, is typically required by lenders.

Proof of Income or Employment

Many lenders require proof of income or employment to ensure the borrower's ability to repay the loan.

Age Requirement

To apply for a title loan, you must be at least 18 years of age.

Active Bank Account

An active checking account is usually required for title loans.

It is important to note that Checkmate offers loans online or in-store, and specific requirements may vary depending on the location and individual circumstances. It is always recommended to contact Checkmate directly or visit their website to confirm the specific requirements and ensure you have all the necessary documentation for the application process.

Title loan pros and cons

Checkmate offers title loans, which are short-term loans that use your car as collateral. Title loans are attractive to borrowers because they provide quick access to cash without requiring a credit check or proof of income. However, title loans also have potential drawbacks that borrowers should consider before taking out a loan.

One of the biggest potential drawbacks of title loans is the risk of repossession. If you fail to make timely payments, your vehicle can be seized by the lender. Title loans often come with higher-than-average interest rates and additional fees, which can add up quickly if the loan is not paid off on time. These fees typically include processing fees and administrative charges. It is important to understand the fees, interest rates, and repayment terms before taking out a title loan to ensure you are comfortable with the potential risks and costs.

Title loan alternatives

Checkmate offers title loans, which are short-term loans that require borrowers to offer their vehicle as collateral against the outstanding debt. While title loans can be a quick and easy way to get cash, they are notoriously expensive and come with high-interest rates, often in the triple digits. This means that they can quickly trap borrowers in a never-ending debt cycle that can lead to the loss of their vehicles. Therefore, it is important to consider alternative options before committing to a title loan.

One alternative to a title loan is a traditional loan from a local bank or credit union. Even if you have less-than-perfect credit, some banks will make collateral loans to borrowers with bad credit. You may pledge your vehicle as collateral and get a loan with a bank-level interest rate, which is still likely to be lower than that of a title loan. Credit unions, being customer-owned institutions, are also more likely to consider your individual circumstances and may approve small loans.

Personal loans are another option. These are available at banks and credit unions, as well as from online lenders. Online lenders include investors and old-fashioned peer-to-peer lenders. A personal loan is not secured by collateral but is instead based on your credit score and income available for repayment.

If you are considering a title loan to make payments on other debts, it is worth evaluating other approaches. Contacting your creditors to discuss your options may be helpful, as they might offer programs to help you through financial difficulties. For example, student loan payments can sometimes be reduced or temporarily postponed. Credit counselling is another option to help you understand your financial situation and set up a repayment plan that fits your budget.

In addition to the options above, other alternatives to title loans include credit card cash advances, short-term bank loans, and even charitable donations.

Title loan repayment options

Checkmate offers title loans that require collateral in the form of a car or other vehicle. Title loans are typically short-term loans with high interest rates and fees, and the annual percentage rate (APR) on an average car title loan can be as high as 300%. Due to their high APRs, title loans can create a financial burden for borrowers, who may never be able to catch up and pay down the loan's principal.

• In-Person Payments: Some lenders allow in-person payments at their physical locations. This option enables you to make payments directly to the lender, ensuring that your payments are received and processed promptly.
• Online Payments: Many lenders offer online repayment options through their websites or mobile applications. This method provides convenience and flexibility, allowing you to make payments from anywhere, at any time.
• Credit Card Cash Advance: If you have a credit card, you can consider taking out a cash advance. While this option typically has higher fees and interest rates than a regular credit card purchase, it can still be less expensive than a title loan.
• Payday Alternative Loans (PALs): Federal credit unions offer PALs, which are based on your income and ability to repay rather than your credit score. There are two types: PAL I offers loans up to $1,000 for one to six months, while PAL II provides up to $2,000 with a term of up to 12 months.

Alternative Strategies

• Negotiate with Existing Creditors: Before opting for a title loan, consider negotiating with your current creditors. They may be willing to extend your repayment deadlines or work out a more flexible payment plan. Even if they charge additional fees or interest, it will likely be more affordable than a title loan.
• Small Loans from Credit Unions or Community Banks: Instead of a title loan, explore the possibility of obtaining a small loan from a credit union or community bank. These institutions often have more favourable terms and lower interest rates compared to title loan providers.
• Improve Your Credit Score: If you have the time, focus on improving your credit score. A better credit score can make you eligible for more favourable loan options with lower interest rates and more flexible repayment terms.

Title loan interest rates

Checkmate offers title loans, which use your vehicle's title as collateral for a short-term loan. Title loans are not common, with only a small percentage of consumers using them. They are also not legal in every state due to high-interest rates and concerns over consumer protections. Title loan interest rates typically charge 25% per month, which is about a 300% annual percentage rate.

In addition to the high-interest rates, title loans often include documentation and processing fees, as well as other added costs that could increase the total cost of the loan. For example, a lender may charge a Lien Perfection Fee, a Title Verification Fee, a Late Fee, and a Document Processing Fee. These fees can add up, so it is important to understand the lender's terms to avoid feeling overwhelmed by the total cost.

Some lenders may also require you to install a GPS device or "kill switch" to prevent the borrower's car from starting, making it easier to seize the car if payments are not made. This further highlights the risk of losing your vehicle if you are unable to keep up with the loan payments and interest rates.

Frequently asked questions