What You Need to Know About Title Loans
January 4, 2019 | By Mason Roberts
At some point or another you have probably heard about title loans, but may not know much about them. A title loan is a way to get quick cash by using a paid off vehicle as collateral. You could receive a loan and still have possession of your car.
The amount of people getting title loans is increasing year by year. This is partly due to how simple they are to get. Here are some things you should know about title loans before getting one.
You Don't Need a High Credit Score with Title Loans
For many loans and credit cards, companies look into your credit score first.
This means that if you do not have a great credit score, you'll most likely be denied for your loan request. The reason this is unfair is because many times our credit scores decrease due to reasons that are out of our control.
So, what do you do in this situation? The great thing about title loans is that for most of them, you do not need good credit. This is because you are using your car as collateral. As long as they know, for sure, that you have a car to use for the loan, you will most likely be approved.
With Title Loans, You Get to Keep Your Car
One of the great things about title loans is that you get to keep your car in your physical possession.
Although it is technically collateral, you don't have to give it away as long as you pay off the loan. The only way the car will be taken from you is if you fail to pay the monthly payments.
The terms and conditions will vary from lender to lender, and the loans themselves vary from person to person, so you want to make sure you've done your homework before signing any loan agreements.
Get Approved for Thousands
Many quick cash loans are a thousand at most. However, since you're using a car as collateral, the loan offer can be much higher.
If your car is worth $14,000, you may be approved to get a $12,000 loan. Although it is not the exact price of your vehicle, they tend to get pretty close in how much they offer.
Quick Cash in Just a Few Hours
The best and most convenient part of this loan is that you can have the cash in your hands the same day as your application. Most of the time it takes only a few hours to fill out the paperwork and get approved for title loan.
You can do a google search for “car loans in my area” to get started on the research phase.
This will give you a head-start in finding title loans near you. Be sure to do an ample amount of research before signing any paperwork. There are scammers everywhere, and it's very important to look into the loan office before being 100% sure.