What is a Title Loan?
A Title Loan is a secured type of loan that enables borrowers to obtain financing even with a bad credit history. The car title is a security for the loan and is temporarily transferred to the lender. After the debt is paid in full, the borrower will be able to get the title again. Title Loans are popular because you do not need to have good or excellent credit in order for your application to be approved. Loans are also approved the same day you sell your application, so you can get money as quickly as possible.
How does a Title Loan work?
In order to receive a Title Loan, the borrower must fully own the vehicle and transfer the title to the lender at the time the loan is repaid.
After choosing a lender, you will need to visit his website and fill out a simple online application. To do this, click the "apply online" button on the main page of the site. There you will be asked to provide basic information about yourself, such as name, residential address, income information, contact information, and more. After making sure that all the data has been entered correctly, send an application.
Oftentimes, title lenders will approve loan applications the same day they are submitted. This way you won't have to wait long. Next, the lender will contact you to discuss the terms of lending and repayment of the loan. Also, you will have to bring the car to the credit store for a specialist to evaluate it and offer you a percentage of the cost.
If you are satisfied with the loan amount and offer, you can sign a contract and get financing.
Am I eligible for a Title Loan?
You probably know that in order to apply for a Title Loan, you must meet the basic criteria of a lender. Despite the fact that they can vary depending on the lender and the state, the main ones remain the same:
- You must be a US citizen or official resident who is 18 years of age or older
- You also need to provide proof of income (minimum $ 1000 after taxes)
- The lender will ask for an active bank account, government issued ID, and social security number.
Important!
In order to obtain a title loan, you must also provide documents for the car, which include:
- Original vehicle title with solo ownership
- Current vehicle registration
- Government issued identification matching the name on the title
- Proof of residency matching the name on the title
- Vehicle insurance proof
Pros and Cons of a Title Loan
Before applying, study the advantages and disadvantages in order to understand if this loan offer is right for you: