Are you planning to take a title loan? Maybe you are in dire need of cash or your big vocational plan where you need some last-minute money. No matter what your reason is, you should know how car title loans work. Today, I will share a complete guide that explains everything about a title loan. It’s time to dig into this guide and get answers to all your questions.
Table of Contents
Car Title Loans: What They Are and How to Get One
Do you need quick cash? It has been made possible through a car title loan. It’s a short-term loan that can let you manage your emergency cash needs. All you need to get a loan amount is to have a car and its lien-free title.
A car title loan is money you borrow by using your car title as collateral. A lender will put a lien on your car’s title, and it will work as a guarantee that you will repay this loan. Explore how personal loans work. When you pay off all loan amounts, then the lien will be removed, and you can have your car title back.
Many people wonder how much money they can take out from car title loans. Well, the amount of your loan is entirely dependent on two major factors. The first factor is your vehicle’s value, determined through proper inspection by an independent car dealer. Another major factor is your ability to repay the loan.
Can I keep my Car While getting a car title loan?
Many people are confused about how car title loans work. They think that when they get a loan from a pawnshop for a precious item, then the pawnbroker keeps that item, and the same will happen in case of an auto title loan. Reality is that you can drive your car throughout this loan; there is no need to give your vehicle to the lender at all. When it comes to car insurance, then different lenders use a varied approach. It’s possible that you go to a lender, and he asks you to get comprehensive or full coverage car insurance. On the other hand, you can also find a lender ready to loan you money against your car title without an insurance policy.
What You Need to Bring to Apply for Your Car Title Loan
Here are a few things you should have while you think of applying for an auto title loan. You must have a car title (free and clear from any lien), vehicle registration, driver’s license, income proof, and social security card. You can make the most from the online title loan facility. This is how car title loans work these days. You provide your first name, last name, address, city, state, phone number, and email address online. The same day, you get a call from the lender’s representative about how you can get the title loan. However, you can go with a direct approach to visit a store and explore what auto loan options you have based on your current situation. When you have all the things, you can get a loan as quickly as possible.