Take Advantage of a Car Title Loan

Do you need to borrow cash to handle a financial emergency? If your credit is poor or you've filed for bankruptcy in the past, your options are severely limited. In today's economy, even individuals with decent credit scores are finding it almost impossible to borrow from traditional lenders. Credit card limits are also severely restricted today, making it impossible for consumers to rely on credit card companies as a financial crutch during tough times.

If you own a vehicle, you may be able to take advantage of a very unique type of loan known as a car title loan. These loans are designed to serve as a short-term solution for borrowers in need of anywhere from $2,000 to $50,000. The application process is fast and simple, there are minimal requirements for qualification, and borrowers can receive their loan funds in as little as 24 hours.

What is a Car Title Loan?

A car title loan is a very straightforward type of loan which utilizes the borrower's car title as collateral. The amount of the loan extended depends on the trade-in value of the vehicle and the borrower's ability to repay the loan promptly. Car title loans are usually short-term loans that are repaid in 30 days or less.

Throughout the duration of the loan, you're able to continue to drive your vehicle as usual. Following repayment of your loan, you'll be able to obtain a new title that removes your lender as a lien holder on your vehicle.

Although reputable car title loan lenders take care to ensure they only extend loans to borrowers who demonstrate the ability to repay on time, in the event of default on the loan, the vehicle may be repossessed. This is the nature of a collateral loan, and it is up to borrowers to understand they must be able to repay the amount they borrow according to the terms of the car title loan.

Fast and Easy Application Process

Whether you apply for a car title loan online, over the phone or in person at a specialized lender's office, the application process is easy. You will need to provide proof of your ownership of the vehicle by presenting the title of the vehicle. A copy of your driver's license, proof of insurance on the vehicle, proof of income and your physical address are other types of basic information you will need to provide.

You won't need to provide information about how you plan to spend your car title loan cash to the lender. Lenders are only interested in assessing the value of your vehicle and verifying your ability to repay your loan. Some companies do look at credit histories, but bad credit won't interfere with your ability to secure a car title loan.

Car title loan companies review and process applications for loans very quickly. You can be approved for your loan and receive your cash in as little as 24 or 48 hours. Due to the ease of the application process and the speed with which funds are available, car title loans are a genuine solution for individuals experiencing true cash flow emergencies.

Minimum Qualifications for Loan Approval

Most car title loan lenders have minimum requirements for vehicles' trade-in values. Typically, your vehicle will need to have a trade-in value of $4,000 or more. Your lender will determine whether or not your vehicle qualifies you for a loan. Lenders will assess the value of your vehicle, and then use this along with your income and other considerations to determine the amount you can borrow.

Some car title loan companies require that your vehicle be paid for in full, but this isn't always the case. Even if there is another car title lien on your vehicle, you could still qualify for a car title loan.

Borrowers need to have sufficient regular income to enable them to afford repayment of the loan, but you don't have to have a full-time job to qualify for a car title loan. Loans may be extended to self-employed individuals, those on disability and retirees, provided their income is sufficient.

Costs Associated with Car Title Loans

There is usually no cost involved in applying for a car title loan. In the event that you're not approved, you'll pay nothing. There's also no fee if you are approved, but decide not to take out the loan.

Lenders typically charge borrowers a one-time loan origination fee, and that fee depends on the amount borrowed. Borrowers are also usually responsible for the costs associated with obtaining a new title showing the lender as a lien holder on the vehicle. In addition, interest is charged on the loan. All fees and costs associated with your car title loan will be clearly disclosed in the promissory note you will sign to finalize your loan.

Car title loans are becoming more and more popular as consumers recognize the value and convenience they offer. In response to the growing demand for these types of loans, competition among lenders has escalated. This means borrowers today can look forward to very competitive rates.