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How Do Title and Payday Loan Companies in Alabama Determine How Much They’ll Lend?

How Do Title and Payday Loan Companies in Alabama Determine How Much They’ll Lend?

Multiple Factors Play a Role in Car Title Loans

Everything happens at once: your laptop died, your work boots fell apart, you needed an x-ray, and the electric bill skyrocketed last month. When you’re on a tight budget as it is, there’s no room for hundreds of dollars of additional charges. If your paycheck just won’t cover the money you suddenly owe, a car title loan can help bridge the gap.

Car title loans allow you to get cash using your car title as collateral, but you get to keep driving your vehicle. You then make manageable payments on the loan balance. When you pay back your loan, you’ll receive your title.

Your Florence, Alabama car title loan agency, Select Title Loans, takes a few factors into consideration when determining how much cash we can lend to you, either for a car title loan or for a payday loan.

Considerations for Title Loan Amounts

At Select Title Loans, our loan amounts usually range from $150 to $5,000. The loan amount is based on a few factors, including your vehicle’s value, how much money you need, and your budget.

payday loan

Your vehicle’s value plays a big role in determining how much money you can get with a car title loan. We take into consideration everything about your vehicle when making a determination for your loan amount, including age and condition. It sounds obvious, of course, but a car with a low value will mean your loan probably won’t be close to our maximum payout. Similarly, a valuable car that you’ve fully paid off could get you a larger loan. Even if your car is wrecked, if you can drive it to our office in Florence, AL for an evaluation, chances are you can get a title loan.

We consider how much money you need before giving you a loan. We wouldn’t want you to borrow more money than is necessary, or give you less than you need and have you come up short for whatever bill you need to pay or item you need to purchase. We’ll ask you questions about the amount of financing you’re seeking so we can ensure your loan is as close to the amount you need.

Your monthly budget is one of the most important factors when determining how much to loan you, using your car title as collateral. Your budget tells us how much you can afford to pay back on your loan each time you receive a paycheck. We don’t want to set you up for failure and lend you more money than you can afford to pay back, shoving you into a vicious cycle of debt. Our goal is to help you with your current financial situation, not make it worse. When you meet with us about getting a title loan, you should know the dollar amount of all your monthly financial obligations and your total income. This information will help us calculate your car title loan.

Payday Loan Dollar Amount Factors

A payday loan, sometimes called a cash advance, is a short-term loan that essentially uses your next paycheck as collateral. You bring in your pay stubs and proof that you have an active bank account, and we will calculate a loan amount that will help you get cash fast. Like with title loans, we have to consider a few things before lending your money.

The first thing we consider is your monthly income and budget. Like with title loans, we don’t want to lend you more than you can ever pay back, nor do we want to lend you more than you get in your paycheck! This is why we require you to bring your most recent pay stub with you when applying for a payday loan.

The second thing we consider is how much money you need. This is a very typical consideration for any lending institution because we not only want to be responsible with our business, but help you be responsible with your finances.

Our final consideration is the collateral you can put up to show you’re serious about paying back your loan. In most cases, this comes in the form of a check that you write to us in the amount of your loan, plus the reasonable fee we charge for originating the loan and overseeing it through payoff. When you pay us back for the payday loan, you’ll get your check back.

Factors We Don’t Consider for Payday Loans or Title Loans

Although there is a lot we consider when determining how much money to lend you, one that we never consider is your credit score. We believe that despite checkered credit histories, our customers are trustworthy and want to pay back the money they borrow from us. We see our role as the catalyst for helping you improve your financial situation.

We also never report your loans from us to any credit bureaus — those folks who calculate your credit score. That’s because we don’t base how we issue loans on their guidelines or rules.

Choose Select Title Loans in Florence, AL

Select Title Loans has been in business for many years, because we saw people in Florence, Alabama were struggling to find financing. Traditional lenders turned them down over and over again. We vowed to help people get the money they need, when they need it.

Today, we offer several loan types with the best customer service in the area. After helping thousands of people each year get the money they deserve to be lent, we’re ready to help you, too.

To learn more about our short-term loan options, contact us today, or visit us at 1203 North Wood Avenue in Florence.


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1203 N. Wood Ave.
Florence, AL 35630
Phone: (256) 767-2100

Mon – Friday 10AM – 6PM
Saturday 9AM – 2PM