Your car is a valuable asset that can do more than just providing you with an easy mode of transportation. For example, if you own it outright and you’re no longer making monthly payments to a credit union or bank, you can make use of your vehicle as collateral for car title loans. Car title loan is ideal for everyone because it offers access to quick cash, and as long as you make your payments on time, you can repeat the process at any time. Your vehicle can serve as a much needed financial securityneeded to help get you through any financial difficulties.
Although, the terms and conditions of title loans vary from lender to lender, but they have common features. In some cases, you can borrow $1,000 or more for few months by giving out your vehicle’s title with an additional set of keys to the lender. You retain physical possession of the vehicle and may continue to drive it during the loan period. You must make monthly payments and at the end of the period, you’ll have to pay off the balance of the loan. If you fail to do so, it might result in extra fees or penalties, or in some cases, having your vehicle seized.
The application process for online car title loans also varies depending on which lender you choose, but the following are the common steps.
- Find A Reputable Loan Company: This is the most time-consuming step of the process, but it’s very important. Therefore, don’t think about cutting corners. Making use of your favorite search engine, check the list of potential lenders that you’ll make research about. Then run additional searches to verify that the companies are legitimate and reputable, and that past customers have not experienced serious issues while trying to get their title loans.
- Compare Loan Terms and Rates: Not all online car title loans come with the same interest rates or terms of service. Therefore, it is ideal to do a little comparison. Also, ensure you check the lender’s policy concerningquick repayment. Paying back your loan early could save you a significant amount of money in interest fees.
- Review the Minimum Requirements: Is the vehicle less than 10 years old and does it have a book value of at least $2,500? Are there any liens against your automobile? Are you currently employed? Are you at least 18 years old and able to provide verifying documents? These are the minimum requirements necessary to be considered for car title loans.
- Submit an Application: This can be done electronically or via fax. Once your application is reviewed, the lender will decide whether or not to proceed with the secondary application process. The secondary application process for title loans involves sending in copies of your Social Security card, driver’s license, proof of insurance, most recent paystub and any other documents the lender requires.
- Receive Your Money: Upon final approval, which often comes within one business days, the loan amount will be transferred electronically to your bank account. You can then access the money at your nearest bank branch or ATM.
This easy application process makes online car title loans the best way to get quick cash whenever you are faced with an emergency. They are useful if you have no credit or bad credit, and as long as you make your payments on time, you can keep the interest charges to a reasonable level. When you run out of other loan options, give car title loan a try.