You will have to face some emergency that you never saw coming at one point in life. If you are lucky, these circumstances will be rare. The brutally changing world makes sure that quite a few people still live from paycheck to paycheck, what with the rising living costs and job uncertainties. So when you are in trouble, it’s great to have the safety net of a savings fund or an emergency fund. If you don’t, it’s better to be aware of possible resources that could help you if you need cash urgently.
This post will cover what a car title loan is, what it involves, and how you can apply for one. A car title loan is a closed-end credit loan with more straightforward terms and a quicker processing time.
What Are Car Title Loans?
Car title loans are essentially an easy and quick method to get cash. As the name suggests, the loan application will be scrutinized against the value of your car instead of your income. This is especially beneficial when you unexpectedly lose your job and are struggling.
No credit checks are required for car title loans. The only details that will matter are a clear car title and a valid driver’s license. The amount for which you will be accepted to get a loan depends entirely on the value of your car, which usually reaches $5,000. Moreover, though the vehicle is the collateral, you won’t have to leave it behind with the lender.
How To Apply For a Car Title Loan?
One of the best things about a car title loan is that the process of getting one is quick and easy. Unlike other loans, the paperwork involved is minimal, and there’s no credit check to be performed. In fact, you can get your car title loan application approved and have the amount on your hands within 30 minutes if there are no complications with your car.
The process involves the following stages-
- You will have to bring your car with a clear car title to the respective lender. Make sure you have valid identification proof with you and your car papers.
- You will be required to fill out some basic paperwork. A representative from the lending institution will evaluate your car so they can determine the amount you will be approved for.
- If your ID and car papers are all in place, you will be approved and have the cash by the end of the day. Additionally, you won’t have to leave your car behind.
If you want to speed up the process more, some lenders let you fill out the application online. This way, your application would have been already checked when you reached the lender’s store location.
What Are Car Title Loans Used For?
A car title loan can be used for literally anything, one of its many perks. Generally, these are used for emergencies or when you have lost your job and won’t be eligible for other loans. These are great for sudden situations like medical bills, essential home repairs, and monthly bills.
Other scenarios where a car title loan will be helpful are when you have significant events coming up but lack the funds, such as some big purchase or a vacation. You can also use this to pay off your taxes.
Mostly, these loans are for pressing needs that you can’t put off. The lenders won’t ask you the reason, so you can use it for whatever you want. If you need it to pay off your electricity or water bills, buy groceries, school or college supplies, pay for tuition, or other typical expenses, a car title loan is a safe and quick way to get the cash.
Car title loans are arguably the quickest and easiest loans to get approved for. We hope this post helps you understand if they will be the right choice for your financial situation. Before applying, make sure you have the means to pay it back in time, or the lender will take your car at the end of the agreement.