How to mortgage a car title

LOS ANGELES, 17th August 2021 / PRNewswire / – If people find themselves in a situation where they need some extra cash right away, a title pledge, also known as a title loan, can be a good option. Title loans are secured loans that people who own cars use to mortgage their car titles and receive cash, often on the same day. Also, the car owner can keep driving their vehicle while the loan is being repaid. Here’s a quick guide on how to mortgage a title.

How do title loans work?
To obtain an online title loan, the title of a vehicle must be given to a title provider in exchange for a loan. The borrower is then allowed to drive their vehicle while paying back their loan. With title loans, borrowers generally do not need a high credit rating to be approved as they use their car as collateral to secure the loan. As soon as the borrower has repaid the loan, he gets the title back and can continue driving his vehicle without worries.

Items needed to mortgage a car title
Each state can vary slightly in its rules for mortgaging car titles. However, car owners usually only need a few things:

  • A vehicle
  • A car title with the borrower as the owner and with no liens
  • Proof of income – bank statements, W2s, social security records, etc.
  • Government issued ID – state ID, driver’s license, passport, etc.

In addition, auto title lenders can ask borrowers for documents confirming the borrower’s address and stable employment.

Mortgage a car title online
Nowadays, many auto title rental companies offer online applications for convenience. In addition to the items listed above, the borrower must provide information about the car including:

  • Do
  • model
  • year
  • Cutting length
  • Mileage

Mortgage a car title in person
When the borrower goes to the car rental company with their documents, the company has the vehicle checked by an employee and takes make, model and year of manufacture into account. You can also use the Kelley Blue Book to help determine the value and determine if the car is eligible for a loan.

Once the employee is done, he will tell the borrower the loan amount and terms. If the borrower agrees, they will receive the money that day while keeping their vehicle.

Repayment of the auto title loan
Many auto title loans last for 30 days. If the borrower repays this plus a monthly fee on time, he can keep his vehicle. If they can’t repay, they can sometimes extend the loan by paying another monthly fee.

However, borrowers should be careful when extending the loan as they can quickly get stuck paying back the loan for a long time. Before taking out a title loan, make sure you have the funds to repay it quickly.

Mortgaging a car title offers easy money
Mortgaging a car title is a quick way to get a loan when someone needs cash quickly. Vehicle owners can apply for a title loan in person or online with just a few details and can continue to drive while the loan is being repaid. As long as the car owner can reliably repay the loan, this could be a suitable means of covering liquidity bottlenecks.

Note: The information in this article is provided for informational purposes only. Check with your financial advisor about your financial situation.

SOURCE Advance America

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