What are the top title loan requirements and how to get one quickly?
When you need a quick cash inflow but your credit isn’t all right, taking out a title loan can be a solution.
This type of short-term loan requires you to deposit your car as collateral and has a high interest rate (usually 300% APR). To be eligible for this type of loan, you must be the full owner of your car and if you cannot pay your installments on time, the lender has the right to repossess it. It is similar to a payday loan in that you typically have a 30-day term for a lump sum.
What you need to know
As with any financial decision, a loan should not be taken lightly. We will try to explain as simply as possible the exact car title requirements and how the loan will be granted as soon as possible. Before starting the whole deal, there are a few things you should think about how much cash you actually need and not overdo it with the sum and be sure that you have a plan for timely loan disbursement not to lose your car without it Reason for a fraction of its value.
To apply for a title loan, you will need to bring both your vehicle and the required documentation to the lender. The vehicle will be inspected so that the lender can verify its condition and that you have the full documentation required. Here is the list of documents needed:
- The original car title shows that you are the sole and complete owner
- An ID that matches the name on the title (government issued)
- Proof of residence with the appropriate name (like an electricity bill)
- Current vehicle registration
- Proof of car insurance
- Proof that you can repay the loan (e.g. a recent pay slip)
- Names and addresses of at least two references and their telephone numbers
- Copies of car keys
Also, some lenders may put a GPS tracking device on your car so they can track it or even disable it if you don’t make the payment on time.
The lender usually won’t do a credit check, so don’t worry about this side of the agreement. On the other hand, the fact that you can get a bad score loan means very high interest rates. It also does not check whether you are currently employed. The amount of money you can borrow is usually 25% of the estimated vehicle value, so keep that in mind too. However, this percentage can vary, but some lenders may approve up to 50% of the car value for the loan. So, find out what the different lenders are offering if you need a larger sum. Also, make sure you know the appraised value of your car prior to evaluating it to ensure you get a good deal.
So get the loan asap
The entire process from applying for a title loan to leaving with the money in your hands can be done in just 30 minutes. The main thing is to prepare in advance, to make sure that you have gathered all of the listed documents and that your state actually allows this type of loan (not all do). The lender will estimate the value of the car and check its condition, but you should have a third party appraise your car beforehand to make sure you know its real value. If you’ve prepared everything properly and there is no problem with your driver’s license and car title, the whole process shouldn’t take you more than half an hour and you can get down to solving the financial crisis that got you loaned in first place . From the moment you leave the lender with the money, the repayment period begins. Make sure you can make the payments on time to avoid losing your vehicle, which is worth a few times more than the loan itself.
These types of loans should only be considered as a last resort. So, if you don’t need instant cash or your credit rating is good enough to get a traditional loan, don’t rush to get a title loan, as tempting as it may sound to get your hands on the money so quickly. If you choose, you will be given a short list of required requirements and tips on how not to extend the waiting time for approval.