Title Loans: Get Cash For Your Car Without Selling it
One property almost every American owns is their vehicle. So it’s not unusual for them to turn to it for help when they are hit by an emergency and need some extra cash.
Usually though few of them wish to give up their vehicle – since it’s such a necessity in most places, selling it may bring in the cash to fix the more immediate problems but may cost extra in the long run.
This is where the title loans come in: title loans are a short-term secured type of loans, where your car acts as collateral. Need cash fast to deal with an emergency? Taking out a title loan is an option that will allow you to get money without having to give up your vehicle. Getting a title loan asap a way to get fast cash now when you need it most. How exactly? Let’s break it down.
What Do I Need to Know About Title Loans?
When it comes to the quick personal credits which are generally known to be quick and easy, the title loans possibly take the cake as being the quickest and easiest. On average, a title loan takes around 30 to 45 minutes to be approved, and even the most demanding lender isn’t likely to keep you waiting for more than an hour. In fact, you’re more likely to wait for your loan approval for closer to 15 minutes than an hour.
A title loan is a secured type of loan, which means your vehicle will be acting as collateral. While this might seem scary, keep in mind that this actually lets the lender operate more freely and accommodate pretty much any type of income, which is what makes the approval process so easy in the first place.
Another upside of title loans is that credit score doesn’t typically matter when it comes to them: usually, lenders do not pay any attention to it, so even if it's outright nonexistent – a credit score won’t be influencing your chances to be approved for the loan. And if you’re scared that the title loan will influence your credit score negatively – you don’t have to worry. The lender isn’t likely to report the loan at all, so it won’t be influencing your credit score in any way.
You Keep Your Car When You Take Out the Title Loan!
There’s a belief floating around that you have to leave your car with the lender when you take out the title loan – and only get it back when you pay off the loan in full. This is a misconception and an incorrect one. Title loans do not call for you to hand your car to the lender, it’s literally in the name: they are called title loans because that’s what they require – a vehicle title.
So when you take out a title loan, the car stays with you and you’re free to keep driving it, as long as you dutifully pay off the loan according to the schedule set by the lender.
How Do I Acquire A Title Loan?
While acquiring a title loan is significantly easier than any other type of loan, that doesn’t mean you can simply walk into a shop and demand they give you money. The lenders do have a few requirements and you do have to satisfy them before applying.
- You need to be at least 18 years old (and have an ID to prove it)
- You need to own a vehicle (in good condition)
- The vehicle title should be in your name and completely lien-free.
As long as the documents are in order, the approval process will go something like this:
- You hand over your lien-free vehicle title to the lender
- You provide your ID to prove that you’re 18+ and it’s your name on the title
- You get the money.
These days the process is so well organized that you can simply take a title loan from the comfort of your own home. Thanks to the option of online title loans no store visit is necessary. You can simply go to the website, fill out the application form, and get approved without ever visiting the shop.
Do keep in mind though that while at-home title loans are convenient, the online application may take a little longer to proceed – around a day or two. So if you need the cash that very day, make sure to apply for the loan early in the morning.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.