If you need cash and you own a car, you might think a car title loan is an answer. It might be the answer, but you need to be aware, and make sure that you choose the right Car Title Loan Company-
Not all title loan companies are the same, some are better than others, so it is important to know what you should be looking out for. Make sure that they are licensed to do title loans in your state.
Title loans are a great way for you to get some fast cash, but be aware of what you are getting into. With most title loan companies, you can get your money within 24 hours.
Make sure you check to find out what the interest rates are, this will vary from company to company, some are much more expensive than others.
Getting Your Car Title Loans
Car title loans are quite different from Payday loans, with title loans you have a longer repayment plan, they are not due at your next payday, you can have up to 24 months to repay them.
With a car title loan, you can get up to $25,000 depending on the equity value of your vehicle. All you have to do is to give the title of your car, but you still continue to drive your vehicle.
No Credit Check Title Loans
You can get a no credit check title loan, but not all lenders will offer them. So you will need to shop around to find the right title loan company.
Your credit will not be a deciding factor on your title loan application, your vehicle equity will let you know how much you can qualify for.
With title loans, your car is your credit, even though some companies will do a credit check, it is to verify that you will be able to make your monthly payments
How Do Title Loans Work?
To qualify for a title loan, you must have a vehicle that will have enough equity in it. Most lenders will require that you have the title to your vehicle and that it is paid off.
If you still have a small balance with your finance company, the car title loan company will pay off the existing loan and replace it with a title loan.
Depending on the equity in your vehicle, you can get u to $25,000, but the average title loan will range from $300 to $3,000.
The lender will advance up to 80%of the wholesale value of your vehicle, you can check out your wholesale value in the Kelly Blue Book.
Getting Approved For Your Car Title Loan
If you want to get approved for a title loan you will need the following items, this will vary slightly from lender to lender, but here are the general items that you will need.
- A clear car title
- Enough equity in your vehicle
- Proof of income, to show you can make the monthly payments
- Your proof of residence
- Proof of insurance, not all lenders require it.
- Photos of your vehicle
- Five personal references
Once you are approved and you have gone to the local title loan office, they will inspect your vehicle, they will go over the contract with you, you will give them your car title, and they will give you the money.
Fast Title Loans
Title loans are a good idea if you need some fast money, but it is important to choose the right title loan company.
As title loans are expensive, you must find the company that will offer you the best terms that will fit into your monthly budget, the interest rate will vary from lender to lender.
Choose a company that has been established, that has good reviews on Google, that will offer the amount of money that you need, that has the lowest interest rate, that has no prepayment penalties.
Make sure that the car title loan company is in compliance with the CFPB, that they follow all of the consumer finance protection guidelines.
Getting a title loan can be a great short-term solution, but if you choose the wrong company it can become a long-term problem, so be careful.