Use Your Car Title In Financial Emergencies

Unfortunately, there are times in life when financial emergencies hit us, and we are least prepared to deal with them. Sometimes these emergencies may be due to medical bills, or other times a need for money may be for car repairs, rent payment, school fees. Whatever the need, a car title loan can be a source of quick cash for people who need money immediately.

What are Car Title Loans?

A Car Title Loan is a loan where you can put your car title up for collateral and get a quick and easy loan. The vehicle used can be a car, truck or other vehicle. A car title loan is one of the fastest ways to get emergency money. As long as you have a clean title to your car and the ability to repay your loan, you can get cash and easy repayment terms within a short time period.

 

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Such loans are a common way to get cash when you need it. The borrowers can use their car title as collateral. This loan is often set up to serve your needs without any penalty being charged for early repayment.

Obtain a Loan Despite Your Bad Credit

People with bad credit are considered at high risk when they think of taking a loan from a traditional bank. But with car loans, you can get funds despite your poor credit. This is because this loan uses the equity of the vehicle to make quick funding within as little time as possible. You may be allowed to keep driving your car while making suitable monthly payments.

How To Apply?

It is very easy to apply; you have to bring the following items to a location near you:

• Your vehicle for inspection.
• Your vehicle must have a clean title to it.
• You must provide proof of residency or utility bills.
• A valid government-issued id.
• Proof of income.
• The vehicle must be registered and insured in your name.

Before applying for a car title loan, there are some points you should consider:

Know the payment options available

When you go for a collateral loan, make sure about how the lenders pay back the loan to you, either by direct payment or from a paycheck.

Understand the online application and approval process

Some loan lenders will have an application process that is done entirely online, while some others might require further verification via a phone call. It usually takes less than an hour to complete the process. This will save you time.

Be sure that you are allowed to drive your car.

Almost every lender will let you keep driving your car after you have access to the loan. Be sure that the lender lets you keep your car but put a tracking device on it to detect your every move.

How do Car Title Loans Work?

When you borrow money against your vehicle, you need to have sufficient equity in your car in order to raise a fund. The amount you borrow is based on the value and condition of your vehicle. The higher the value, the more amount of cash you receive. In case the borrower fails to pay back the loan, the lender can repossess and sell the vehicle to recover the money.

There are some benefits when you avail Car Title Loans:

• One of the most significant advantages is that they are very fast, easy and convenient. The whole process is completed within minutes. Once you submit the form, you can receive the amount on the same day of approval.
• Your credit does not matter at all, because your loan is based on your vehicle. So it is easier to obtain one even if you have bad credit.
• You need to have a vehicle like a car, SUV, truck or motorcycle to qualify for a loan because this loan is not based on your credit. It is based on the guarantee by using the title of your vehicle.
• Another benefit is that such loans have convenient payment options to repay the loan.
• If you are experiencing financial stress, a secure loan like this can help you recover at your difficult times.

How Are Car Title Loans different from other unsecured loans?

• Your car, which is used as collateral, is given to avail the loan.
• The interest rates are low, though not as low as the rates given to borrowers with good credit scores.
• The loan period is quite flexible.
• The loan amount borrowed depends on the value of the asset that has been pledged.
• Unemployed individuals can also apply.
• The loan approval process is much faster as compared to other unsecured loans.