If you’re going through a period of financial uncertainty or insecurity, you are probably wondering whether or not now is the right time to take out some kind of personal loan. Many personal loans are only a true option if you have great credit history and a great credit score. If you don’t, you might feel like there is nowhere for you to turn. Luckily, one option that is available to those even with bad credit is a type of short-term secured loan called a car title loan.
If you are considering taking out a car title loan, you probably have quite a few questions regarding your potential loan. It’s important to get the information you need to get the best loan for you, and to be prepared for what might come down the road.
Read on to see some of the most frequently asked questions, and get the answers, regarding car title loans.
Why Should I consider Getting a Car Title Loan?
Car title loans can be a fast way to get a personal loan when you need it most. You can get car title loans very quickly and can have nearly immediate access to cash to help solve your financial troubles. While other types of loans make you jump through hoops and can take weeks to get approved, car title lenders work to make it as easy as possible for you to get your cash.
They also cost less than cash advance and payday loans because the car title lender is using your car as collateral and gives them a certain amount of financial protection.
How Long Does It Take to Get an Auto Equity Loan?
This might be the first question you find yourself asking. If you’re in need of money quick, a car title loan can be a great way to go. Car title loans are all about fast cash, and many companies can get you approved, and get your loan to you within hours.
Usually, people taking out a car title loan can expect to have their money within 24 hours of applying for the loan. The timeline certainly does depend on the borrower, as lenders can only approve the documents you submit as quickly as you submit them, but once you do that, companies are typically motivated to get deals done as soon as possible.
How Much Money Can I Expect to Get for My Pink Slip
This is likely another one of the very first questions. Simply, the amount of money you can expect to get out of your loan is dependent on the value of your car and the amount of equity you have in your car. The more it’s worth, the more you can borrow.
It is also important to note that many car title lenders will only work with you if you have full ownership of your car.
The average worth of a car title loan is anywhere between $100 and approximately $5,000. Some companies have a minimum (usually between $1,500 and $2,500), and other companies have a maximum. That maximum typically tops out at $50,000 across the entire industry.
You will typically be able to borrow between 25 percent and 50 percent of your car’s total value. You’ll know how much you are eligible to borrow before you finalize your application.
Must I own my vehicle
The simple answer to this questions is no. While it is called a car title loan, you can actually make use of other vehicles such as trucks, motorcycles, RVs, and even four-wheelers and boats. If you have a financial emergency, or need to pay rent, or simply need a way to make ends meet, you can make sure you have the money you need before it is too late by applying for a car title loans.
Does my car have to have a minimum value?
To put it simply, yes it does. Vehicles typically have to be at least $2,000 to qualify as collateral in order to qualify and in turn get a car title loan online. On top of that, some companies require your car to be beneath a year or mileage threshold as well.
What Documents Do I Need to Apply?
The answer to this question depends on what company you are borrowing with. Overall, these are the documents you can be expected to present.
You can also expect to either offer pictures of your vehicle, or bring your vehicle for an in-person inspection. Some companies may also ask for professional and/or personal references.
How Do I get the cash?
You don’t need to have a bank account to get a car title loan because car title loan providers offer their service independent of any financial institutions. What matters most is getting your car ready to be used as collateral and providing all the information necessary for the approval.
Sometimes, borrowers don’t just want to share their personal info with lenders. In this situation, you can make payments and received your loan through other means.
What cars are acceptable as collaterial?
The entire concept of a car title loan is using the car you own outright as collateral to help protect the lender form any unnecessary financial risks. If your vehicle is not paid off, it means you’re not the complete legal owner of the car, and if you fail to repay your loan, the lender may not be able to claim rights to the vehicle. That is why it is somewhat uncommon for a lender to approve anyone who does not own their car outright.
What If I Don’t Have Proof of Income?
This depends on the company that you are lending to. Some companies require for you to make a minimum amount per month to apply, while others accept applications with no proof of income. Some companies also accept other documents in place of proof of income. Documents such as disability, pensions, a retirement account, social security, or unemployment benefits can also be used.
Can I Get a Loan on a Car Titled in a Different State?
There are many reasons why you might need a car title loan when you’re in a different state. You might be in another state, and you need a loan, or you just moved to a different state and have yet to re-title your car loan. Most car title loans companies will still issue the loan once their conditions have been met, but you must be able to check a few boxes first.
First, you need to prove that you lived or are living in the state that your car is titled in. That means you need to have some form of proof of residency. However, some car title lenders will require that you re-title your car to the new state. That is still quite simple and can be taken car of by a quick trip to your local department of motor vehicles.
Can I Still Use My Car After I Am Approved for a Pink Slip Loan
This is one of the best aspects of a car title loan. You can use your car as long as you are making your payments to pay back your loan. You can continue using your car with no restrictions while you are repaying your loan. That will only change if you fail to pay back your loan, in which case your lender will have the option of repossessing your car to sell and make up what you owe.
One thing to keep in mind is that you are going to want your car to be fully insured while you are borrowing a tile loan. Be careful to ensure that you do not get involved in an accident or cause other damage to your car during your loan because that might cause your car to lose its value. That can cause complications, especially if you are not able to pay off your loan within the payment term you agreed to.
What if There Are Multiple Names on My Car Title?
When there are two names on the car title the way names appear will dictate how the loan will be made available to the borrower, or whether the car will even qualify. This is due to state regulations to ensure a proper due process is followed. If the individuals’ names of the title are written with “or” then any party can request a car loan even when the other party is not aware. However, if the name of the title has “and” or “and/or,” then the loan can only be issued wit the signature of both parties.
Can I Get a Car Title Loan with Bad Credit?
Whether or not you are subject to a credit score check before you are approved for a loan depends on the company you are attempting to borrow from. Some lenders require no check. Other’s make a credit card check a necessary aspect of granting a loan.
Primarily, however, it is important to remember that most car title loans are predominately based off the value of your car.
What a credit score check is typically for is so that lenders can try to predict whether or not you will be able to pay back your loan. Bad credit is not necessarily a deal breaker, but good credit could give you the opportunity to enjoy better loans and better repayment options.
Can a Car Title Loan Impact My Credit?
Simply taking out a car title loan will have no negative impact on your credit. What very likely will have an impact on your credit would be a missed payment on your loan repayment
If you do miss any payments, your credit score will most likely decrease just like it would if you missed any other kind of credit or loan payment.
How Long is the Repayment Period?
Just like the answer to most of these questions, the repayment period differs depending on which company you decide to borrow from. Some repayment periods are as short as 15 days. The average repayment period is a month. Some repayment periods can last as long as several years.
It is important to find out whether or not the company you are working to borrow from has pre-payment fees. That means that if you are able to pay your loan back before the end of the payment period, you could be charged for it.
Can I Have More than One Car Title Loan?
You can only have one title loan on your car because your car only has one title. What you can do if you are struggling to pay back your original car title loan, however, is seek out a company that is willing to refinance your loan.
Refinancing your car title loan might be an attractive option because you could end up getting a new loan with a more attracting interest rate and repayment schedule. This certainly is not the ideal. The ideal is to take out your loan and pay it back in full within the repayment period, but it’s always good to know what kind of options you have if you start to feel yourself slipping into trouble.
When Do I Get My Title Back?
This is definitely a question worth asking, and the answer it quite simple. You get your title back once you have paid back your loan in full before the due date. If you do that, your title will be handed back to you. Once you paid back your loan, you can still use the same car to borrow money again on a different car title loan.