Get AZ3-Multipay-TITLE LOAN CONTRACT

In general, you can expect car repossession to occur if you miss three or more payments in a row on your auto loan. One missed payment can result in repossession, but it's less common. A missed payment is considered a payment that is more than 30 days late.

In fact, the average borrower for car title loans rolls over their account eight times before the loan is either repaid or the lender repossesses the car. Because your car is used as collateral with a car title loan, the lender has the ability to repossess the car as soon as you default on it.

Car title loans and various other types of short-term loans given to service members and their dependents must include special protections under federal law and a Department of Defense rule. The military APR for car title loans offered since Oct. 1, 2007 with a term of 181 days or less cannot exceed 36 percent.

Title loan regulations permit the title lender to repossess the car as soon as you default. Keep in mind that you must repay the entire loan balance to avoid foreclosure. You could potentially repay most of the loan, but the lender could repossess the car if you default on any portion of the amount due.

With some lenders, you may be able to get the money you owe to the lender before they repossess the vehicle, but after the car title loan has defaulted. ... Some lenders may even send a notice of repossession to give you the chance to pay off the loan.

Payday loans, overdraft lines of credit, and most installment loans are covered by the Military Lending Act. As of October 3, 2016, most types of consumer loans offered to active-duty servicemembers and their dependents have to comply with the Military Lending Act (MLA).

In most cases, a title loan won't have any impact on your credit scores. That can be good and bad. For starters, most title lenders don't run a credit check when you apply. That check, known as a hard inquiry, typically knocks five points or less off your credit score.

The Military Lending Act (MLA), 10 U.S.C. § 987, enacted in 2006 and implemented by the Department of Defense (DoD), protects active duty members of the military, their spouses, and their dependents from certain lending practices.

If you can't pay off the loan in the typical 30 day period, the lender may offer to roll over the loan into a new loan.

With a title loan, you cannot borrow more than your car is worth, because the vehicle itself is the collateral for the loan. Understand that your vehicle's value decreases once you drive off the lot, and any outstanding loan you have against that vehicle also lowers the equity on your vehicle.