Car Title Loans: A Guide on Cash, Car Collateral, & Credit for Loans
When an unexpected expense pops up that is considerable in amount, but you are not in the financial position to bank roll it or dip into your emergency fund, you may find yourself turning to borrowing as a last resort. While you can ask your loved ones or friends for money, not everyone is going to be able to or want to financially help you out. Getting a loan from your local bank may work, but if you have no credit, bad credit, or need the money quickly, it’s not a favorable or doable option. So, what do you do? If you have a car and are in a pinch, you have another option - an emergency fast collateral loan against your automobile. In this guide, we are going to discuss how to use car title loans to get cash, to use as collateral, and if they are available for individuals with no or bad credit.
What Is a Car Title Loan?
Before we jump into what a car title loan is, we first must understand what the title of a car does. If you own a vehicle, you will have a document that proves that you are the owner of said vehicle. This is called a car title and contains important information about your car, such as the name of the owner, the vehicle identification number, weight class, lender’s name and address, as well as the odometer reading on date of purchase. All information on this document must be 100% accurate.
So, what is a car title loan then? Also known as an “auto title loan,” a car title loan is a secured short-term loan that varies in length, anywhere between 30 days and 12 months for short-term repayment schedules. For longer term repayment schedules, this can be anywhere between 12-48 months for those who take the maximum value extended to them. It is important to note that with this type of loan, you (as the borrower), are offering up your car as collateral. This means that if you do not stick with the agreement, you may lose your car in the process.
How Do Car Title Loans Work?
Permitting that you outright own your vehicle, the process of getting a car title loan is fairly straightforward. Here is how it works.
You must consult a car title loan company or an alternative private lender as banks and credit unions do not offer this type of secured loan.
You will need to take your car title (pink slip or document) with you to apply for the loan. You can go into the car title loan company or you can apply for a car title loan online. You will also need a Government-issued ID, vehicle registration, any auto insurance documents, proof of residence, and proof of ability to pay the loan (bank statements/employment pay stubs). You also need a functional copy of the keys.
2. The make and model, year, and condition of the car will be inspected. This is to help them determine how much they will loan to you and what the resale value of the car is.
If you are approved for the car title loan, the car will remain in your possession and can be used during the duration of the loan, as long as you stick to the agreements in the loan.
How Much Cash Can You Get?
If you are in an emergency situation, cash for a car title loan is a quick way to remedy your situation, but it is important to consider how much you can actually borrow. Taking the full amount offered to you may not be the wisest choice as that can cause financial issues down the line if you cannot repay the loan. The minimum amount that is accessible is $2000 from most lenders but can extend up to $25,000. Your car’s make, model and mileage on the car will help determine the loan limit.
Don’t Dread the Credit Check
There are plenty of car title loan companies that will provide loans for bad credit or no credit individuals. Many lenders don’t even consider your credit score, as you do not need to have an excellent credit score to get approved. While some lenders may do an employment check and may do a credit check, this is more to ensure that you have a steady income to pay with the loan back with ease. It is unlikely that you will get denied for having bad or no credit due to fact loan is being approved based on the equity of your car.
I am Interested, How Do I Apply?
You can apply by completing our Eligibility Form or Call us for quick Loan Quote at Toll Free 1-800-455-3997.