If you’re in need of a lot of cash and have a car that has been paid off you may be able to qualify for a auto title loan. These loans have very specific requirements, but really are easy to get. There is also a lot of bad information in the internet about how a loan like this actually works, so in this post I want to clear some of this up for you so that you’re able to figure out if a title loan is the best loan for your situation.
If you want to get a title loan you’re going to need a few specific things. The most important is a car that has been completely paid off. You’ll also need its title, an extra key, have it insured, and a job. If you can meet all of those, there really isn’t a reason you won’t get approved. Your car is collateral in this loan, so you are able to borrow a percentage of its value. The biggest problem with secured loans is that if you have an issue making the payments, they repossess and sell your car so they can get paid!
You’ll most likely start your title loan online with the application and then drive the car you’re using as collateral to the loan office for it to be appraised. Starting online speeds the process up a ton. After getting paid, you will make your first loan payment on your next payday and then on successive paydays for the next few months. It’s easy to miss a payment over several months, so be extremely careful!
Expect the entire process to take an hour or two. If you have some extra time before you go to the lender, be sure to clean your car up as much as possible. Doing this will help it get appraised for as much money as possible, which will increase the amount that you’re able to borrow from them. They’re humans too, and shop with their eyes just like you do! You do have to be careful with this though because you may end up getting more money than you are able to pay them back.