Falling behind on some bills or being faced with emergency expenses can happen to almost everyone. In such cases, you do not have to sit and despair but get yourself together and find a solution to the financial problem that you are in.
While working overtime, getting a new job or turning coupon shopping into a habit might be a long-term solution, none of these methods will work in case you need the money urgently. The option that remains open is to get a loan that you can use to cover the current debt. There are several ways that you can borrow money but only one is fast and available even to those who have a bad credit history – a car title loan.
What is a car title loan and how to apply for it
A car title loan is a loan that you receive while using your car title as a collateral. This type of loans is getting quite popular as it is fairly easy to get one, the approval procedure is quite short and you can get a loan even with a bad credit history.
In order to apply for a car title loan, you should be 18 years of age and live in the same state, where the car title loan company operates. You need to provide a valid ID, your driver’s license and proof of your address, which can be done with a paid utility bill. The vehicle title should be on your name and there must be no other liens against it. It is possible to use your RV, trailer, truck, motorcycle or boat as a collateral as well.
For the vehicle, you need to present its registration and insurance. Most of the lenders will also require that you have repaid it in full but some will accept it even on a lease contract.
In most of the cases, you will drive your car for the entire period of the car title loan. This is yet another great benefit of these loans. Even though you use it as a collateral, you still keep it and don’t have to figure out how to get to work or take the kids to school.
How fast can you get your cash
Car title loan companies are popular with the fact that they work quite fast and you get an approval of your loan on the very same day, usually within half an hour. Since car title loans are so quick, they are particularly useful in case of emergencies – such as unexpected medical bills, sudden car repair or other similar events.
As a whole, the entire application process is quick and simple. The reason for this straightforward procedure is that the lender does not check with a credit bureau whether the applicant has issues with their credit history.
The approval of the application is based solely on the provided documents of the person and the vehicle and the amount to be lend can vary between $2,600 to as much as $50,000. It is based on the current resale value of your vehicle and its overall condition, mileage, etc.
How to repay a car title loan
When you are looking for the right car title loan provider, you need to consider the overall conditions the company offers and not only the interest rate. Make sure that the amount you need to return every month is within your budget. Check whether you can repay the loan earlier and if there is a penalty for that. It is better to select a car title loan provider that won’t impose a prepayment penalty and that has no minimum repayment period.
It is also important to check what will happen if you fall behind with the installments. Are you allowed to be late once or twice? Will the company take your car immediately or there are any other options.
As a whole, make sure to read all the terms and conditions and ask questions in case you do not understand any of the points or you need further clarification.
Getting a car title loan may be the best solution to your urgent financial troubles provided that you select the right car title loan provider. It is worth spending some time to research the option that would give you the best conditions and answer all your needs.