If you are in need of cash fast, you might be wondering what types of loans are out there that can help you get the money you need. One great option available to you as long as you own a car and are in possession with the title with your name on it, is car title loans. Car title loans can go a long way in helping you cover medical emergencies, make a big addition to your house or business, or simply help you make ends meet.
Car title loans are a type of secured personal loan in which you put up your car as collateral in order to take out a cash loan. While you are able to drive and possess your car throughout the life of your loan, you are trading in your car title. Car title loans range in value from a few hundred dollars to a few thousand – and even more if your car is worth it. Typically, car title loans are valued at anywhere between 30 percent and 50 percent of the total value of your car. The reason why they are not worth the full value is because if you default on your loan, your lender may have to repossess and sell your car in order to recoup their losses. This is not a good situation to be in. If that happens you may be in a position where your car is auctioned off and you might not receive the same price as selling the car yourself.. They will want to get the sale done as quickly as possible.
Knowing the potential risks involved in car title loans is important. There are some risks involved. Be sure you can pay your loan back. Be comfortable with the payments. Treat the loan as if it is a short term loan only. You want to be absolutely sure that you can approach this type of loan responsibly. So, If you are prepared to do so, here is how you get one.
Getting a car title loan can be as easy as logging onto your computer. Many lenders have fully embraced the internet age and now allow applications to begin and complete the entire car title loan process from A to Z online. Also, You won’t even have to go anywhere to get your money as lenders can transfer it to you.
In order to qualify for a car title loan, you will have to have to have full ownership of a car that is worth at least $2500, a lien-free car title with your name on it, and several additional documents. Those documents include:
If you have all that, you should be good to go when it comes to getting a car title loan. Each lender has their own criteria. Ask your lender what is needed to get your loan. Borrowing against your car is a popular way to get quick cash. You can use the cash for whatever you desire. Often loans can be funded fast, many times the same day. Loans can be done on a number of cars or boats and trucks. Bad Credit is ok. In fact, you won’t even have to divulge any information regarding your credit score or credit history. Some lenders will not require a credit check. You can apply and qualify without ever having to have your credit checked Because car title loans are secured loans! Good Luck.