Home of the fastest temperature change ever recorded in the world, South Dakota residents know the difference that just 5 minutes can make. If the 'snow eater' wind is coming around your parts of the Black Hills and you find yourself without money to pay for heating or other unplanned expenses, don't fret.
In a state where five minutes can change everything, even those with bad credit can also reach out and get immediate help. A title loan in South Dakota is an decent way to use your vehicle to get a quick cash loan with no credit check!
What is a title loan?
A title loan is a type of high-interest loan that uses the title of your vehicle as collateral for a quick cash loan. To qualify for a title loan, a lender will first assess the value of your car and then determine the loan amount you can borrow.
While you repay the loan, the lender will hold onto the title. If you fail to make the payments, they may take possession of your car.
South Dakota title loan requirements
Before heading over to the application page , here are the requirements you need to for an auto title loan:
- A New Hampshire driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in New Hampshire
- A running vehicle
You must be 18 years old to qualify for a title loan as a South Dakota resident. To comply with the Military Lending Act, US military members cannot apply for a title loan.
The title loan process
Now that we have covered the basics of securing a title loan in South Dakota, let's go ahead and jump into the exact steps involved in getting a title loan.
The first step of the process is to head over to the title loan application page. From there, you must enter basic information such as your name, address, and how much you need.
Next, the lender needs to pull your application and verify your provided information. They might ask for your ID, proof of income, residence, and vehicle title. This will help them make a responsible decision.
After all your documents are received and verified, the lender must inspect the vehicle and determine its value. They can do this through pictures or an in-person arrangement by a local rep. Once the value is established, the lender will know how much they can safely lend you.
Once all the details are crystal-clear, the lender might be ready to proceed to the contract-signing stage. Make sure to read all of the terms of the contract and ensure it matches the norms set forth by the South Dakota legislature described below
Once both parties sign the contract, the lien is placed on your title, and you should now hand over the title to the lender. Once this is done, the disbursement process will start.
Make sure to confirm how funds are dispersed in the contract. Typically, lenders may deposit the funds directly into your bank account. However, they might also have you visit them locally at their office or a partner store to disperse the funds.
Following the terms and interest rates outlined in the contract, be sure to repay the loan in full. Otherwise, you will risk losing your vehicle. Once repaid in full, you get the title back and will get to keep the car.
How title loans are regulated in South Dakota
Title loans in South Dakota are currently regulated under South Dakota Codified Laws § 54-4-70 et seq.
South Dakota has some of the most borrower-friendly laws regarding interest rates. Under § 54-4-44, Codified Laws require that interest rates have a maximum rate of 36% APR. This is a steal compared to other states, with rates around 300%!
The payment terms defined under § 54-4-71 state that the initial period of a title loan can be up to just one month. However, this can be renewed up to four times if the borrower and lender agree.
There are also up to 8 renewals allowed, given that the borrower pays 10% of the loan upon renewal. However, as described below, lenders also have much more freedom to start the repossession process if you default on payments.
According to § 54-5-72, a debtor is considered in default if they fail to repay the loan under the terms of the agreement. In this case, the lender can legally begin the repossession process.
Any surplus on the amount owed, minus "reasonable expenses" that the lender must make for storage, sale, and repossession, is returned to the buyer.
Cost considerations and title loan alternatives
The cost of a title loan in South Dakota is dependent on your loan amount and your APR. Here are a few examples to help illustrate the true cost of a title loan.
- Example 1: You borrow $3,000 at an APR of 300% and pay it back in 30 days.
If you took out a $3,000 loan and paid it back in 30 days, you would pay a total of $3,750 back to your lender in 1 payment. In this example, you’re paying $750 in finance charges to borrow $300.
- Example 2: You borrow $3,000 at an APR of 300% and pay it back in 6 months.
If you borrowed $3,000 and paid it back in 6 months, you would pay a total of $6098.76 back to your lender in 6 payments of $1,016.46. In this example, you’re paying $3098.76 in finance charges to borrow $3,000.
Personal installment loans: A better and more affordable way to borrow money with bad credit
Title loans can seem a bit intimidating to some. Typically, this is because of the real risk of losing your vehicle. If you want quick cash without placing a lien on your title, you might prefer an online installment loan.
With an installment loan, you can borrow up to $3,000, and best of all, you don't have to hand over your vehicle title. You can also pay back the loan in clearly defined monthly installments instead of just getting 30 days.
However, keep in mind that installment loans do require a credit check.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding South Dakota title loans.
Can I qualify for a title loan with bad credit?
Yes! Most people applying for title loans do so knowing that a credit check isn't part of the decision-making process. So bad credit or no credit is not a problem.
Can I get a title loan completely online with no credit check and no inspection?
Yes! You can get a title loan with no credit checks. However, lenders will not want to commit to making a loan without first inspecting the vehicle.
Will I receive the funds from my title loan instantly?
Borrowers can receive their loan on the same day of the agreement. To make sure that you get your loan as quickly as possible, make sure that your documents are submitted and that the inspection is done by 2 PM EST.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in South Dakota, including:
- Belle Fourche
- Box Elder
- Dell Rapids
- Elk Point
- Fort Pierre
- Hot Springs
- North Sioux City
- Rapid City
- Sioux Falls