If you are in a period of financial instability, you may be wondering what your financing options are to help you make ends meet. Whether you are trying to pay for an unexpected medical emergency, looking to pay off crippling debt, or have an opportunity to make a one-time payment to dramatically improve your home or business, there are a lot of types of loans out there that can help you.
Those options start to slim down, however, if you are looking to either make a payment within a very short amount of time, or if your credit score and credit history leave something to be desired. If you are looking for a loan that you can get in a matter of hours and is available to you no matter what your credit score is, a car title loan could certainly be your best option. So what are car title loans and what documents are required for you to get one?
Car title loans are a very straightforward kind of personal short-term loan The reason why is because the value of your loan is directly tied to the value of your car. In order to qualify for a car title loan, you must have full ownership of your car and have a lien-free car title. Beyond that, your car typically must be worth at least $2,500 based on Kelley Blue Book
While your car title loan’s value is based off the value of your car, do not expect it to be equal to the value of your car. Car Title Loans are typically worth 30 percent to 50 percent of the value of your car. That’s because if you default on your loan, your lender will have the option to repossess your car in order to recoup their losses. While getting your car repossessed is a horrible outcome, only about five percent to twenty percent of borrowers end up losing their car to repossession.
If you think this information sounds really easy to provide, you’d be right. Car title loans are famously easy to get, which is what makes them so popular. Because they are so easy to acquire, it is up to you to decide whether or not you are responsible enough and have the money to take out your loan and pay it back, plus interest, once your payment term ends. If you are, a car title loan can be a great way to get the money you need when you need it.