If you are currently involved in a legal case, both parties may have finally reached a resolution, otherwise known as a settlement. While a settlement may be ideal because it means the end of a long court battle, it could also mean you have to come up with a lot of money.
There are two basic types of settlements, structured settlements and lump sum settlements. Structured settlements allow you to make installment payments over a long period of time whereas a lump sum settlement requires the full cost upfront.
If you don’t have the money to pay a settlement, you may have considered a local registration loan. Consider all the possible loan options open to you before you make a final decision!
Can I Keep My Car with a Local Registration Loan?
Local registration loans may provide you with the money you need for a settlement, but you could also lose possession of your car! During the repayment process, a lot of registration loan lenders may require you to leave your car at a secure lot. This is done to ensure repayment of the loan, but it is not ideal for borrowers.
However, if you want to use your car to obtain emergency cash, a title loan may be a good option. The car title is used as collateral, and you could keep driving your car during the repayment process!
Are Local Registration Loans a Good Idea for Settlement Money?
While local registration loans allow you to borrow emergency money using your car registration, they don’t typically offer the best terms. If you need more than a few hundred dollars for a settlement, you may need to look for another loan option.
Local registration loans are also known to come with high-interest rates and short repayment terms. So if you want more money and better terms, consider a secure title loan!
Consider Title Loans Instead of Local Registration Loans for Settlement
Title loans are a type of secured loan that allow qualified borrowers to use their car title as collateral. Unlike local registration loans, title loans usually offer qualified borrowers more money for settlement and other emergencies. Title loans could also come with exclusive benefits that you may not be offered with a local registration loan.
Take a look at the perks that could come with a title loan for settlement:
- Competitive Rates: A title loan could offer you competitive rates that are based on up to date market analysis.
- Affordable Payments: Local registration loans are known to come with high monthly payments which can make repayment stressful. With a title loan, you may get more affordable payments!
- More Money: Title loans could potentially offer qualified borrowers more money for a settlement than a local registration loan.
- More Time for Repayment: A title loan could offer longer repayment terms than a local registration loan, giving eligible borrowers lower monthly payments!
- Fast Settlement Money: If you need money quickly for a settlement, a title loan could give you the quick cash you need in as little as one business day!1, 3
What Documents are Required with Title Loans for Settlement?
The inquiry process can be a lot quicker and simpler with title loans than it is with local registration loans. One reason for this is that the documents required are few and likely found around your house. Best of all, if you inquire for online title loans, you could conveniently upload your documents online!
When proceeding with the title loan process, generally you will need the following documents:
The car title is used to secure the title loan, therefore your car must be worth more than the loan and the title must be in your name. If your name is not on the car title, you can easily request a title transfer at your local Department of Motor Vehicles (DMV).
Proof of Income
Your income is one of the most important qualifying factors for title loans–aside from the car. To demonstrate your ability to repay on time, you can show bank statements, paycheck stubs, etc.
Proof of Residence
To qualify for a title loan in your state, you need to show proof of residence. This can be done by providing credit card statements, utility bills, phone bills, insurance statements, etc.
Photos of the Car
Online title loans allow you to forego the in-person vehicle inspection, saving you time! Instead, all you have to do is take photos of your car in bright light using your smartphone. Take a photo from each angle, of the vehicle identification number (VIN) and another of the odometer.
A title loan agent may request references, which can usually be a mix of professional and personal.
To obtain any type of loan, your identity must be verified to prevent identity theft. You can show proof that your name legally belongs to you by providing a state ID, driver’s license, passport, etc.
Should You Get Local Registration Loans for Settlement?
Local registration loans are perfect for individuals that don’t need a lot of money and can afford to temporarily lose possession of their car while they repay the loan. If you need more than a few hundred dollars for a settlement, and your car is your main mode of transportation, a title loan may be a more ideal loan option!
Title loans serviced by LoanMart allow you to use your car title as collateral for quick settlement money.1 The process only requires a few streamlined steps and you could possibly be approved the same day you inquire!1 3