Car Title Loans Guide

What you need to know about getting a car title loan.

The economy is currently in a very poor state.  This is due to high unemployment and an inability to borrow money.  Even people with good credit are often turned away for the smallest of loans.  For those with poorer credit, things are worse.  They may try to save every penny they have, fearful of what will happen next.  However, regardless of what financial situation you are currently in, sometimes an unexpected circumstance might force you to spend.  When this happens, you are left with one of two choices.  You could spend your last dime in savings or you could look into car title loans.

Car title loans, (also known as pink slip loans), are more lenient than traditional loans.  With traditional loans, you must have a good financial portfolio to get approved.  A high credit score is not even enough.  During these tough economic times, banks are not likely to approve you unless you have collateral and a good amount of savings.  These factors are not taken into consideration when you apply for pink slip loans.

Only one thing matters with car title loans… whether or not you possess a car.  This is what is used as collateral.  No other loan makes things so easy.  Ultimately, if you have a car that is completely paid off, you should be eligible for most pink slip loans.   In addition, you do not have to give up possession of your car during the course of the loan.  As long as the payments are made on time, you are still considered the owner.

With that being said, you might be wondering how much money you can get if you sign up for a pink slip loan.  Well, this will depend on your car’s value. Lenders will figure out your car’s wholesale cost by analyzing its age, the condition it is in and how many miles it has.  If the car offers any amenities, (like a security system, special wheels or upgraded interior), those things will be factored into the value as well.  From there, they will give you an estimate.  Your final loan amount will be half of this figure.

The process does not end there.  Some lenders may want to verify your source of income.  This lets them know if you have the ability to keep up with your payments.  It also locks you in at a lower interest rate.  Lenders who do not request income verification usually charge more interest, since they do not know if you can repay.  Try not to settle for such lenders.  If you are receiving steady income of any kind, stick with lenders who require verification.  This is the case even if your money comes from alimony, unemployment benefits or a disability check.

Other information will also be needed before you can receive your money.  As far as your car, the lender will need to know if it carries insurance and whether or not it has passed inspection.  Your insurance papers, as well as a copy of your title should do the trick.

The lender will want proof of identity.  You will have to show them your Social Security card and a driver’s license.  You may also need a copy of your lease or deed, to show where you live.  If neither of these documents is available, they will also accept a recent utility bill.

How to Shop for Car Title Loans

To maximize your search for car title loans, you need to be aware that it comes in a variety of different names.  Pink slip loan is the most common, however sometimes the loan will use “car collateral” and “title collateral” as monikers.  Use all of these terms when researching your loan on the Internet.

For those who prefer to work with a local lender, a phone book can provide a great deal of assistance.  However, keep in mind that this will not replace the ease of an Internet search.  With a phone book, you have to call the lender to get a rate.  The Internet will provide a rate and more information in a matter of seconds.  Best of all, you will get additional quotes from other lenders.  This information will let you know who is offering the cheapest rate.

Getting a Car Title Loan in Less Than an Hour

Car title loans do not take a long time to approve, simply because you are using your car as collateral.  There are no worries over credit checks or anything else concerning your financial portfolio.

Once your paperwork goes through, most lenders will give you the money in less than sixty minutes.  Those that are unable to do so usually transfer the funds within a business day.

Other Things to Remember

Car title loans have a very short lifespan.  The average one will usually last less than thirty days.  Some are only fourteen days.  Regardless, you are expected to pay the loan once the term expires.  The only exception is if a state allows an extension.  In this case, the extension would be no longer than the original term.  So, if you signed up for a fifteen-day loan, your extension would also be fifteen days.

In either case, if you do not pay your loan on time, you will end up losing your car.  You will also get a negative credit rating.  For this reason, you need to be honest with your lender.  Let them know if you are going to be late.  Many will be understanding and accept the payment.  Others may not be, but it is worth a shot anyway.

In conclusion, car title loans are an excellent way to get fast money during an emergency.  Their interest rate is lower than payday loans, and they are very easy to get.   However, do not take these loans lightly.  Make sure you budget your payments on time.  Otherwise, you may end up without a car.

Car title loans are one of the easiest and quickest ways of borrowing money in just 15 minutes time. Car title loans, which is also called as a title loan, pink slip loan or an auto title loan are a kind of a loan, where the borrower needs to use car title as collateral in terms of security.

These loans are short-term loans and often carry higher interest rates as compared to other kinds of loans. The reason for higher interest rates is quite simple – since you are using car as collateral, a few lenders don’t need to credit check for the same. If you own a clear title for your car or a truck or an SUV, plus the wholesale value of your vehicle is at least $4,000, you are eligible to get loans without any hassle. In addition, the main advantage of availing this kind of a loan is that though you have pledged your car as collateral, still you can keep the car with you can use the same. Unlike pawnshops (which offer pawn title loans) where you would require surrendering the car, but here you are still the owner of the car and you can use the same anytime. And since you have applied for a secured loan, the interest rate would definitely be lower as compared to unsecured loan.

Many a times, you do not even require driving and visiting the financial institution to get a loan. There are several firms that offer online or phone services provided you give correct documentation. It does not matter if you have a bad credit record you are still eligible to apply for car title loans provided you have a secured job with you.

Following are the documents that you need to provide in order to get a loan:

· A clear car title: As the name suggests, you car should be free of any kind of loans.
· Driving license: you must own a valid driving license
· Proof of auto insurance
· Social security card
· In a few situation, a recent pay stub

So, if you are working and own a car then you can get a quick and hassle free loan on behalf of your car. You can get loans in less than an hour (there are several firms that offer in just 15 minutes). It is much faster than going to a bank for the same. So, if you want finance quickly to pay some unexpected bills or planning to go for a holiday then get a car title loan now. You can apply for a loan online – simply, fill out an application form with relevant information and you are done.