IntroductionSometimes in life, situations arise where you needmoney for something and you just don’t have it. Noone wishes those types of scenarios to occur, butthey do anyway and it’s nice if you have an optionwhen they come around.One option that not a lot of people know about isthe auto title loan. Here is some basic informationto help get you up to speed.
What Are Auto Title Loans? According to Prudent Financial Services, auto title loans are loans that you can get by using your paid off vehicle as collateral. Basically, your car or truck acts as security for the amount of the loan and you can still have full use of the vehicle as long as you make your payments.
What Are Auto Title Loans? The terms of auto title loans will vary depending on the lender, but you can usually get a larger loan amount and lower interest rate than with a personal loan. It’s also common to get a longer period of time to pay the loan back than the typical personal loan.
Who Qualifies for Auto Title Loans? Of course, not just anyone with a car can drive up and get themselves a nice, chunky loan. It usually doesn’t matter if you own a car, van, truck or SUV, but certain conditions must be met in order to qualify.
Who Qualifies for Auto Title Loans? These too can vary slightly, but here are some common conditions: Vehicle must be completely paid off with no liens or leases. Most vehicles must be no more than six-years old. The vehicle must be fully insured in your name only. The vehicle ownership must be in your name only. If another name is on the vehicle ownership, they must co-sign. The vehicle must have current, up to date license plates. Can use a company vehicle if you own the company.
Is Credit Important? Whether or not credit score and credit history is important to the process is up to the individual lender. Some places will require a decent credit score in order to qualify, while others use auto title loans as a means of helping people with questionable credit.
Is Credit Important? Some lenders feel that as long as you meet all of the requirements of the auto title loan, you are eligible to receive a loan because they have their bases covered.
Is Credit Important? If your credit isn’t exemplary but you meet all the other criteria, be sure to mention that when you contact the lender about the loan.
How Do You Apply? Auto title loans usually don’t take very long to process. Some places have online applications, while others will require you to go into the office and fill out an application. Since you either meet the loan requirements or you don’t, you can usually find out how much you’ll get within the same day. In some cases, you might see the money by the end of the next business day.
Benefits of Auto Title Loans It’s easy to see the benefits of car title loans. Not only is the process convenient and fast, but you don’t have to jump through hoops with banks and financial institutions to get it all done. For anyone who has experienced that sinking feeling when you try to take out a personal loan and are rejected, auto title loans might be a viable alternative.
Reasons People Seek Auto Title Loans There are no real ‘set reasons’ that someone tries to get an auto title loan. Basically, they need money for tuition or debt consolidation or a home renovation or a wedding.
Reasons People Seek Auto Title Loans People seek auto title loans for the same reasons they seek any type of personal loan. It’s likely more the concept that gets them pointed in the direction of an auto title loan. This is just a different way to access money when you need it, and it’s a way that many people prefer to conventional methods.