Who Uses Title Loans?
According to the latest data, Title Loans are used by all demographic groups and regions, but most often it is white, fermale people aged 25 to 44 who apply for funding.
How Many People Use Title Loans In The USA
Almost every person has heard or taken a instant Title Loan online at least once in their life. This Loan is presented as an easy and convenient way to obtain emergency financing when the borrower finds himself in a difficult life situation, but this statement is quite controversial. Loans began to appear throughout the United States in the 1980s and have gained quite a lot of popularity, especially Virginia Title Loans. The next leap came in the 1990s when payday lenders added online lending to their range of services. Keep reading for more information on what Title Loans are, how many people take out these loans each year, and what are the statistics by state.
What Is A Title Loan And How Does It Work?
A Title Loan is a type of financial service that offers quick money to enable the borrower to cope with a difficult life situation. This loan is named this way because it is short-term and the borrower must repay the debt on the day of his next salary (often within 14-21 days).
A notable fact is that the loan has minimum eligibility criteria, so virtually any borrower can apply and receive funding. Most often, with a Title Loan, you can get between $1000 and $10,000 to cover emergency needs. However, not everything is perfect, as Title Loans have extremely high interest rates.
How Many Americans Use Title Loans Every Year?
Every year more and more Americans apply for Title Loans as it is one of the easiest and fastest ways to get cash. Today, 12 million Americans annually use Title Loans to meet their needs. The past five years have been particularly significant as about 6% of American adults have used Title Loans, and experts say this number will only increase. What's more, three-quarters of borrowers use Title Loans at the store, and a quarter take Title Loans online. It's also worth noting that about $9 billion a year is spent paying off Title Loans annually.
The popularity of Title Loans has only continued to grow over the past decade, and as of 2021, there are approximately 23,000 Title Loans in America. The data suggests that borrowers, on average, take out about eight Title Loans each year.
Who Uses Title Loans?
The latest data on payday loans in the United States show that they are being used by all demographic groups and regions. Typically, Title Loans are used by white, female borrowers aged 25 to 44. If other characteristics are taken into account, there are several groups that potentially have a higher chance of applying for and receiving a Title Loan. This includes those without higher 4 years education, those making less than $40,000 a year, African Americans, and those people who are divorced.
However, as you understand, most often people applying for Title Loans often have a rather low income. The average borrower using Title Loans receives approximately $300,000 per year. It is important to note that about 60% of these same borrowers find it difficult to repay the loan.
Which Age Groups Use Title Loans Most Often?
While on average about 6% of Americans use Title Loans, many borrowers are in the 18 to 24 age group. Many experts argue that this may be due to the fact that the cost of living is outpacing inflation. Thus borrowings, as well as fast Car Title Loans do not require a good credit history for approval can be a good option for getting rid of financial problems for young people. According to 2022 surveys, about 40% of young people aged 18 to 21 considered applying for a Payday Loan to pay for college in Virginia.
How Many States Consider Title Loans Legal?
Currently, 32 states either officially allow Payday Loans or have loopholes in the law that allow lenders to operate and provide borrowers with the necessary funding.
States where you can get Title Loans are: Alabama, Alaska, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
How Many People Use Payday Loans In Each State?
Why Do Borrowers Use Title Loans?
Initially, Title Loan was created to enable borrowers to apply and meet emergency needs. However, it is noteworthy that most borrowers use this loan to cover ordinary regular expenses such as utility bills, renting an apartment, and so on. According to surveys, various demographic groups indicate that they most often use Title Loans to cover living expenses. It is also important to note that, on average, a borrower is in debt for about 5 months a year.
About 70% of borrowers who applied for a Title Loan for the first time used the money specifically to pay credit card bills, utilities, mortgages, food and rent. Only 15% actually dealt with emergency expenses and applied to cover emergency needs.