Breaking Down Car Title Loans and What They’re Used For
If you have ever needed immediate cash or a loan, then you know how challenging it can sometimes be. Unfortunately, banking institutions don’t really make this an easy process. They make you jump through several hoops and fill out a ton of paperwork. Not to mention, their interest rates can be remarkably high. Also, if they deem that your credit score is too low, then they can outright decline your loan application.
Thankfully, there are other ways to get cash on-demand when you need it. If you’ve had bad luck with the banks, then this may be the time to consider a car title loan. They have proven to be a simple and reliable way to get people the cash they need on a quick turnaround time.
What Is a Car Title Loan?
As the name implies, this is a short-term loan that uses your car title as collateral. The advantage of car title loans is that there is no credit check and no long waiting period between your application and approval. All you need to do is bring in proof of a clean and clear car title and your photo ID.
Once your car has been evaluated and all your documentation has been processed, you can walk out with cash in-hand and as little as 20 minutes. That sort of expediency is something the banks can’t do, which has made car title loans a highly popular option all across the country.
How Much Cash Can I Get with a Car Title Loan?
Every state has their own specific rules and regulations regarding lending on car title loans. Also, the value of the car factors into the amount that the car title loan institution will lend you. If you have a late model car, chances are, you’re going to qualify for the maximum loan value. However, older model cars still fetch high loan amount rates as well.
You’ll want to double-check what the max car title loan amount is that you can get in your state, but generally speaking, the amount is around $2,500. It’s also important to note that just because you qualify for a certain amount, doesn’t mean you have to take the max. Borrow only what you need so that you can make the repayment process easier on yourself.
Failure to repay a car title loan could result in the car title loan company taking possession of your vehicle.
What Can a Car Title Loan Be Used For?
The beauty of a car title loan is that it is one of the most flexible loans that you can get. For most people, they use it to take care of sudden financial emergencies. That could mean paying off an unexpected bill, medical expense, or home repair. When a major appliance breaks like a stove or refrigerator, a car title loan works perfectly in a pinch.
But just because a car title loan is generally used for emergencies doesn’t mean it can’t be used for everyday expenditures. Since the car title loan is going to be given to you in cash, you can use it for groceries, back to school supplies, or anything else that you might need. Unlike certain bank loans, car title loans don’t require you to spend the money in a specific way.
Where Can I Get a Car Title Loan? And What Do I Need to Bring with Me?
Car title loans are one of the most popular lending institutions in the country. By performing a Google search using the term “car title loans near me” it should return a large amount of results in your area. From there, you can go to the car title loan company’s website and they will break down exactly what you need to bring with you in order to apply for a loan.
In most cases, you need to bring the following three items:
- A clean and clear car title that is free of any liens
- The vehicle that is on the title
- Your driver’s license or ID
To save time, most car title loan companies will let you fill out the application paperwork online. Once you arrive at the store in person, they can retrieve the information from their secure database. This helps speed things along. Once your paperwork has been processed and your car has been evaluated, you should have your cash in as little as 20 minutes.
Take the first step today by searching car title loan companies in your area. They can get you the cash you need today with no credit checks and no long waiting periods.