If you’re short on cash and need to pay some bills or get your hands on some money, you may have heard of a car title loan but may not know exactly what they are. These are known as title pawns in some states or and elsewhere.
This is one of the easiest ways to quickly get your hands on some money, and you’ll just need to meet a few basic requirements in order to be eligible for the loan. There are many different lenders available to choose from, but before searching for your lender it’s a good idea to get educated on the title loan laws in your state to ensure you understand your rights and responsibilities.
A title loan is when you use your vehicle as collateral in order to receive a loan. The amount you receive will depend on the model of your vehicle, along with the age and a few other things, and you may want to get quotes from a few different lenders to find the best deal.
Title loans are perfect for people who have either bad credit or no credit. When you get a traditional bank loan, your credit history is your collateral and will determine the amount of money you can get from the loan. Unfortunately, it’s relatively easy to have bad credit, and since a title loan is using the title of your vehicle as the collateral instead of your credit history, you’ll be given cash in return for your car title. As soon as you repay the loan, you receive your car title back, which can greatly help you when you need money fast.
If you apply in person for a title loan, you’ll need to ensure that you have some documentation, including a passport or driver’s license, your social security number, proof of residency such as a recent utility bill, your vehicle registration and vehicle title, and some references (along with their contact information). If you have all of this documentation, you may find that you can apply and receive the money at the same time.
For those who are internet-savvy, you’ll also find that you can apply online for a title loan. While you’ll still need the same documentation, it’s usually more convenient, easier, and quicker. While some lenders will just allow you to fill in an online form to get in touch and then will call you so you can complete the loan process in person, other lenders will often let you do the whole process online, which can make it much easier for you to receive your loan.
It’s important to remember that in order to get a title loan, the vehicle must be completely paid off and solely in your name. If you have another person listed on the title you may still be able to get a title loan but it’s likely that that person will also have to apply as well.