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Do your bills and payments seem like they are starting to pile up on you? When important financial deadlines sneak up on us, it can be difficult for anybody to keep their budget in order. Financial assistance from a car title loan could be the answer you’ve been looking for. Title loans could help you pay for:
- Unpaid parking tickets
- Fixing your car
- Unexpected medical bills from unforeseen circumstances
- Catching up on credit card bills
- Getting ahead on bills and payments
Some types of loans, such as payday loans, come with notoriously high interest rates and miniscule loan periods. This is because they are unsecured loans. This means that you must pay back your loan in full within a short amount of time or else face all kinds of late fees and interest charges.
An auto title loan is simple: it’s fast, efficient, and gets you the money you need without the hassle in as low as one business day3, even if your credit is less than stellar.
What’s a Car Title Loan?
An Auto Title Loan is a loan that is based on the equity of a person’s drivable motor vehicle.
Did you know that car title loans can go by many different names? Here are some of the other terms that are commonly used when referring to car title loans:
- Auto title loan
- Pink slip loan
- Auto equity loan
- Title loan
- Title loans with bad credit
- Automobile title loan
- Car equity loan
- Cash for car title loan
- Auto collateral loan
Generally, when qualifying for said loan and depending on the lender, a customer will have to relinquish the vehicle’s title to the lender, as they will become the new lien holder. The lender assumes this duty over the course of a customer’s payment period or payment plan schedule. In some cases, a customer will continue to have use of the vehicle.
What is Equity in a Motor Vehicle for Car Title Loans?
Homes and motor vehicles (cars, trucks, RVs, motorcycles, etc.) are two of the most common things that people own that are considered assets when loans are often involved. When considering a purchase of a means of transportation or base of operations and shelter, many people take out a loan to get achieve these goals, knowing that they will end up having to pay them off later.
Say you have a financed car or a home mortgage, as it is not an uncommon trait in this day and age; these properties will either have positive or negative equity. If the piece of property you own is worth more than the balance you still owe on a loan, it has positive equity, whereas, if the balance is more than your house or vehicle is worth, it will have negative equity.
So, when someone has equity in their vehicle, it means that it is worth more than what they still owe on it. Essentially, equity tells you how much of the car you actually own, and you can calculate your car’s equity with minor math by subtracting the total amount you still owe to the financial institution or dealership from the actual value of the car. That’s the easy part. To find out the numbers you need to perform the problem, you can get your vehicle appraised at a dealership or on Kelley Blue Book, and obtain some of the loan information from your lender.
Who Are Car Title Loan Benefits For?
Auto Title Loans are for anyone and everyone. Folks from all walks of life might be able to obtain an Auto Title Loan in a few simple steps—it isn’t the time consuming process that banks, credit unions, pawn brokers, or other financial intuitions may stretch out over the course of several weeks to a few months.
That being said, a majority of loans depend purely on credit history. If you have great credit, then you’re more than likely in the clear and could get approved for a title loan a few short hours after you’ve submitted your application. If you have fair, poor, or a bad credit history it may seem impossible to get the money you need. Loans are incredibly important to a lot of families in the United States for financial growth—mortgages and vehicle financing—as it’s a means of being trusted for future loans and expanding your credit limit.
Beware “Bad Credit” Loans
You may have heard of loans marketed towards individuals with a poor credit history; Payday Loans or “Bad Credit Loans” aren’t the most viable options, but because of their obtainability, many people often turn to them with little to no knowledge of what they’re actually getting into.
Payday loans tend to have shorter terms with a high interest rate and the usual average is between $300 and $500. While this doesn’t sound like too much of a risk, after a week the loan picks up interest, which wouldn’t be as bad if you weren’t supposed to have the full lump sum paid.
Bad credit loans are a type of unsecured loan without collateral. Lenders offer repayment stipulations that traverse several months, no collateral, and high interest rates—due to a customer’s poor credit history. Beware of your bad credit in this situation: lenders may claim to offer loans to people with bad credit, but they are often denied once they apply. It isn’t fair but because the majority of Americans are ignorant of the subject matter, things tend to work out in the lenders’ favor.
Benefits of Car Title Loans
Everything has a good side and a bad side, just like a beautiful rose has sharp pointy thorns. The same goes for car title loans.
That’s why we are giving you some pros and cons of car title loans, so you learn everything about car title loans from the roses to the thorns. You need truthful, accurate information in order to make the best decision for yourself, so that’s what we strive to give you every time you ask us a question.
Here are some of the pros and cons of car title loans.
- Approval for a Car Title Loan is High
Don’t be discouraged from applying for a car title loan if your credit score isn’t as good as it used to be. People with all types of credit are encouraged to apply. We approve people with a wide variety of credit scores every day.
You are more than just your credit score, that’s why we look at other factors such as the equity of your vehicle and your ability to repay your loan rather than just at your credit.
- Quality Service You Can Rely On
We have representatives available 7 days a week with extended hours so you can get the help you need when you need it.
- You Can Enjoy Convenient Terms and Competitive Rates with a Car Title Loan1
Will work with you every step of the way when it comes to creating the best car title loan plan for you. We won’t stick you with ridiculous rates and unmanageable terms. In fact, when you get a car title loan we will create a personal payment plan for you. Your monthly payments can be spread out so you can afford your installments without flipping your budget upside down.
- Keep Your Car When You Get a Car Title Loan
When you get a car title pawn, it is typically required that you give up your car during the duration of your loan. We know that your car is an important part of your life, so we do everything we can do make sure that your car stays where it should, with you. When your loan is paid off, you can get your title back.
CONS of Car Title Loans
- Car Title Loans Can Get Out of Hand if You Neglect Them
If you don’t make payments on your car title loan for several months, you will end up paying more in interest because your balance isn’t getting smaller with each month like it should be. The bright side is as long as you stick to your car title loan payment plan, this won’t be an issue.
- There is a Limit to How Much You Can Borrow
The amount of money you can receive from your auto title loan varies from state to state. Your informed car title loan agent can inform you of the state specific terms that are applied during the lending process.
Get Car Title Loan Benefits
Loan application processes can be approved within the day if everything is in order. If you submit all the necessary documents and photos of your vehicle, you may be able to get your money the following business day or in some cases, even before the day ends. How about cash today? Sound’s good? Let’s get started early!
Loan approvals for this are largely based on the value of one’s vehicle as well as the loan applicant’s ability to pay back their loan. When we have this information a personal loan underwriter will take ALL your factors into account, not just one, giving you a great chance to get the loan with a computer spitting out automatic denials.
Individuals with bad credit scores can still qualify for an auto title loan. People who have bad credit might think that they have no chance at all to become approved for an auto title loan. Having said that, your past “black marks” have little to no bearing when it comes to applying for a car title loan! If you need more time to pay off your intended loan, simply come forward with that concern and the loan officer attending to your needs will gladly sit with you to discuss the best plan that will make loan repayment more manageable for you and your situation.
If you’re interested in an Auto Title Loan, give us a call at 855-422-7412.