Everything You Need to Know About Title Loans

Most people assume that a title loan is the same as selling your car – not true! When you take out a title loan, you are using your car as collateral for a loan amount based on the value of your car.

The process is very easy, and even those with less-than-perfect credit can qualify for title loans in just a few minutes. Let's take a look at everything you need to know about title loans.

What Are Title Loans?

A title loan is a secured loan based on collateral – if you own a vehicle, you could borrow money based on the evaluation of its worth. If you make all your payments on time, you may keep your car for the duration of the loan and get money in the bank.

However, if you don’t make your repayment terms, you must hand over the car title to your lender.

How Much Can You Get?

Your loan amount will vary depending on your car’s current market value. If your car is valued at $10,000, you may qualify for a loan for that amount.

What Do You Need to Apply?

Applying for a title loan is easy and can be done in an hour. When filling out your application, here’s what you need:

● Copy of your car ownership and title
● Proof of insurance
● Proof of income no less than $1,500 per month
● Proof there are no liens on your vehicle
● Valid photo I.D.

Repayment Details

Each lender has different repayment terms. In general, there is some flexibility to your repayment terms since the loan is secured. You will make arrangements to repay installments at regular intervals until the loan is paid off. There is no penalty for paying off your loan early.

What Happens If You Don’t Repay Your Loan?

There are always penalties when you fail to meet your loan obligations. For title loans, the repercussion is that you lose your car title. Your lender will take possession of your car until the loan is paid. If you don’t finish your payments, you lose your car permanently.

If you own a car, a title loan may be able to get you money in the bank in less than 24 hours.