LoanMart Review: Auto Title Loans for Everyone

Company (Lender)	Loan Amount	Loan term	Min. credit score	Est. APR	Funds available in
	$1500 – $3,100	12 – 48 months maximum	30 – 640	0% – 249%	one business day

LoanMart is a lending company that provides short-term loans to consumers. It is based in Van Nuys, California, though it started as a local pawn shop in Sherman Oaks, California, in 1999. In 2002, LoanMart purchased a small auto title loan portfolio, giving birth to 800loanmart. The company has grown ever since within the short-term loans industry, priding itself as a foremost provider of auto title loans, serving over 250,000 happy and satisfied customers.

Today, LoanMart operates in 8 states in the U.S. The company offers personal loans to customers in California, but in other states where it operates, it is better known as a provider of title loans. They offer loans up to $3,100, with terms lasting between 12 to 48 months. Their loans are quick, easy to access, and application processing typically takes minutes to finish. They can give approval and funding within one business day.

Unfortunately, like all short-term lenders, LoanMart’s interest rates are incredibly high. In other words, what you’ll wind up paying as interest may, and most times will exceed the loan amount you initially took out, in multiples of two, three, or more, depending on how long it takes you to complete your payment. Also, you risk repossession of your beloved vehicle if, as things may turn out to be, you’re unable to meet up with payment as scheduled.

Services Offered

If you’re new to short-term loans, LoanMart has two services — personal loans and title loans — that could help you out of a tight situation. Perhaps, you’re still biding your time, scanning through your options. Below are the services you can expect from LoanMart, their terms, fees, and how to access them.

LoanMart Personal Loans

LoanMart offers personal loans to consumers, typically known in the financial industry as installment loans. These are a type of loan with a set number of payments to be paid off within a designated period of time. With a LoanMart personal loan, you can take care of many pressing financial needs and payback at a pace that’s convenient for you.

LoanMart personal loan is a short-term loan, so you can expect to pay back within a maximum period of 30 months. Also, the interest rate is relatively high. But the good thing about LoanMart personal loans is that they are accessible to people of all credit scores. The company encourages borrowers to apply regardless of their credit rating. Also, there’s no need for collateral, meaning there’s no risk of losing any personal effect should you fall short of your repayment plan.

To apply for a LoanMart personal loan, all you need to do is go to their website, fill out a simple form, and submit. You can complete the whole process in 5 minutes or thereabout. You may also visit their locations in any of the states where they operate or call instead. Do note, however, that personal loans from LoanMart are not available in all states.

LoanMart Auto Title Loans

The majority of loan offers from LoanMart are title loans. The company is better known as a provider of auto title loans across 8 U.S states. In case you’re new to auto title loans; An auto title loan is a personal loan that uses your vehicle as collateral. Lenders typically determine the loan amount you’re eligible for based on your car’s value and your ability to repay the loan.

To secure a LoanMart auto title loan, the company values your vehicle, depending on the year, product type, and model. If you’re pre-qualified, the company then places a lien on your car title as collateral. However, throughout the period you are supposed to pay off your loan, you can keep driving your car.

When you finish paying the loan amount, LoanMart will give you back your car’s title. Generally, auto title loans refer to several other terms, such as automobile title loans, car equity loans, title loans, auto equity loans, and auto collateral loans. They all mean the same thing.

According to LoanMart, the interest rate for this loan is dependent on credit determination, loan terms, and differs from state to state. For instance, in Utah, the APR varies between 80% and 204%.

Is LoanMart a Legitimate Company? 

LoanMart is a legitimate lender. Unlike scam title loan lenders, LoanMart services are free of charge until they disburse a loan to you. This means that they’ll answer all your questions even before applying for a loan. They’re also willing to give you a free quote so that you get an idea of what to expect.

LoanMart is subject to lending and finance laws in every U.S. state it serves. They also protect all your information from unauthorized access.

You can identify a scam lender when they ask you to make a huge down payment, pay a fee to apply for a loan, refer someone to get approved or grant you a loan without any official submission. You want to stay far away from such companies as they do not have your best interest at heart. To get more information about LoanMart services, you may visit their website or call their customer service inquiries.

Who Is Eligible for LoanMart Personal Loans?

Any borrower not less than 18 years old is eligible for LoanMart personal loans, as long as you can show that you can repay your loan. If you’re opting for a title loan from LoanMart, be prepared to let go of your car title until you repay the loan given to you, along with the applicable interest.

The company generally determines your eligibility for a title loan based on an evaluation of your car. That said, they use other factors such as alterations made to the interior of the vehicle, modifications made on the vehicle’s exterior, and overall usage to determine your eligibility.

However, LoanMart services are only available to U.S. citizens and residents in the following states:

1. Alabama
2. Arizona
3. California
4. Georgia
5. Missouri
6. New Mexico
7. South Carolina, and
8. Utah

Required Documentation

LoanMart will ask you to provide the documents listed below:

• Proof of identity with a government-issued photo ID
• Proof of residence
• Proof of income, and
• An active and valid personal checking account
• A vehicle valued at least $1,500 (for title loans. Note that the car title must be in your name)

LoanMart will also require you to fill out the following information in your application form

• Name
• Date of birth
• Address
• Email address
• Telephone number, and
• Other identifying questions

After submission, LoanMart may carry out a little inquiry and background on you to confirm your eligibility. Typically, within an hour of applying, LoanMart will review and approve your loan application, and you get your money between that time and the next 24 hours. Funding is usually made available via electronic deposit, MoneyGram, check, or physically in any LoanMart licensed location.

Will LoanMart Conduct Credit Check on Me?

Yes, LoanMart will only run a soft credit inquiry on you. They usually do this when determining your qualification. However, since it’s a soft credit check, it will not hurt your credit score. LoanMart personal loans are designed for everyone interested in a short-term loan, even if their credit score is poor.

Besides, being an auto title loan, your eligibility is primarily dependent on your ability to pay back and, of course, your car’s value. This means that even bankruptcy will not affect LoanMart’s approval decision. Remember, they will use your vehicle collateral. Note that the company may run a hard inquiry to determine your credit standing before releasing funding to you.

What Is LoanMart’s Estimated Funding Time?

LoanMart typically approves or rejects your loan application within 24 hours of submission. You also get funding within one business day of approval.

How Do I Pay off My LoanMart Title Loan?

Upon approval of your loan application, LoanMart will design a personal payment plan using any convenient payback options. You may give LoanMart kudos here because they’re not just interested in collecting back their money but also invested in ensuring the repayment process is convenient for you.

Their various repayment options include:

1. Mail a check to a payment center
2. Pay via phone with a credit or debit card
3. Monthly automated debit: you can set up automatic payments from a checking account
4. You can pay online, using the MyAccount tab
5. Pay with your LoanMart app
6. Visit a LoanMart licensed payment location and pay cash or with your card.

They will not charge you any prepayment fee if you pay off your loan early or pay an extra amount each month. In the spirit of creating a payment option that suits you, the company allows a payment period of at least 12 months and 36 months at most. However, depending on the arrangement you’re able to strike with the loan disbursement team, you can go up to 48 months. The company will also send you billing statements each month to remind you when your next payment is due.

If you cannot meet up with your payment obligations, you may talk to a representative from the company to work out something. Otherwise, the company will have to comply with the Fair Debt Collection Practices Act by reporting the default. In this circumstance, your car will be repossessed and sold off to cover your debt.

LoanMart Interest And Fees

LoanMart Personal offers a fixed APR on title loans. This can range from 60% APR to 249% APR and can vary by state. As with most short-term lenders, these interest rates are high. So while you exchange your car’s title to get a loan, be sure that you can payback. Take your time and review the paperwork thoroughly before accepting the offer.

If past customers’ review(s) are anything to go by, you may end up paying so much interest that letting go of your car may be the easiest way out. According to the company, your APR may also depend on other factors, such as your credit score.

Also, LoanMart isn’t very transparent about fees. You’ll have to apply first to see your payment schedule. But in Utah, they’re required by law to first educate their borrowers about the fees and available payment plans before the borrower’s application is granted. For personal loans, you will pay an origination fee of $0 – $100. Also, lenders may require you to pay a late payment fee of up to $10.

Does LoanMart Report To Credit Bureaus?

Yes, LoanMart reports your loan performance to credit bureaus. The company reports your payment history to Experian and Equifax. This can be a good thing for borrowers with poor credit history, as a positive loan experience with LoanMart can help you build a positive credit rating for the future.

To make it all good for you, LoanMart’s decision to lend you money is hardly affected by your credit score (they will, however, carry out a proper check to ascertain your loan status). So, LoanMart is a good place to start on a clean slate.

Can a Title Loan Hurt Your Credit Score?

No, it won’t, especially if your lender does not run a hard inquiry on your credit status. If a title lender runs a credit check on you, that check will bring down your credit score by five points. Also, if the title lender does not report your payment history to the credit bureaus, your title loan still won’t impact your credit score in any way.

In most cases, going for a title loan means that you don’t have any other better options for a short term loan, so you want to be sure that taking out one will improve your credit score.

Can I Rescind My Loan Application After Receiving Funds?

Interestingly, yes. LoanMart allows you to exercise the right to rescind. So, you’ve just received a LoanMart auto title loan, and after you review the repayment schedule, you think it will be difficult for you to handle; You can reject the offer by just simply writing back to the company.

The borrower must make his or her intentions clear in writing not later than midnight on the third day of obtaining the loan. You should also return all monies received from the company within one business day from notice of rescission.

Bottom Line — Deciding if LoanMart Title Loan is Right For You

Besides the high-interest rates, LoanMart has the perfect loan offer to save you from a tight situation. But before you settle for any title loan, for that matter, you may need to check if you’re eligible for other traditional and less expensive loan offers.

Title loans are generally expensive, but if you’re in such dire need that you don’t mind temporarily forfeiting ownership of your car, you may proceed to take out a LoanMart auto title loan.  However, be certain that you’ll be able to bear the weight of the interest.