Getting Fast Money Can Be Easy!
The scenario is a familiar one. You need to make an important purchase, but you’ve just checked your bank account and your balance is low. Like, zero dollars low. Even though you work hard, you might find that your paychecks don’t always cut it, especially when you need to pay for unexpected expenses.
Thankfully, there are fast and easy ways to get the cash you need if you ever find yourself in this situation. One of these ways is to take out a car title loan.
On this page
What is a Car Title Loan?
A car title loan is a short-term cash loan that uses your car’s clear title as collateral. You simply provide your title to the title loan company, and they will determine how much money they can lend you based on the value of your vehicle and a few other qualifications. You usually get to keep your car keys and drive off in your vehicle, while they hang onto your title. When you pay back your loan, usually within a week or two, you receive your car title back and your debt is cleared.
Aside from getting your cash quickly and when you need it, car title loans are also very convenient for people who have had struggles with their credit in the past. Because title loan companies take into account the value of your vehicle and hold your title as collateral, they generally do not check your credit score. That means you can have no credit or very low credit and still get the money you need, without judgement.
So how do you get a car title loan? Follow these tips so you can get your cash today.
Own a Car with a Clear Title
The most important way to take out a car title loan is to own your vehicle. That vehicle must have a clear title to qualify for the loan. A clear title is one without any liens attached to it, such as an auto loan or other debt, which is usually printed on the title. If you are making any sort of payment toward your car then your title may not qualify. It’s best to check with the car title company of your choice if you have any specific questions about car title loans.
Come with Proof of Income
Aside from considering the value of your vehicle, a car title loan company will also want to know that you are employed and can prove your employment history. They don’t want to set you up for failure and lend you more money than you can comfortably repay, so that’s why they consider your monthly income when calculating your loan and developing a payment plan.
When you visit a car title company and apply for a car title loan, in addition to your clear car title, you also should bring with you your last few pay stubs from your employer or employers that show your take-home pay. If your pay is irregular because your hourly work schedule varies, you should bring multiple pay stubs when applying for a title loan. If you work multiple jobs, expect to bring pay stubs from each employer as well.
Bring Your Photo ID
A financial lender will always want to verify your identification. It protects you and others! Make sure you have your photo identification card with you, like your driver’s license, when you apply for a car title loan. Not only will the lending professional verify your identity, but they’ll also make sure the name on your license matches the name on your vehicle’s title. You won’t be able to take out a car title loan on an automobile that you do not personally own.
Your photo ID is also important to verify your age. Check the laws in your state for verification, but most of the time you must be at least age 18 to take out a car title loan.
Share Your Needs
Our last tip is to be honest and upfront about how much money you’re seeking from a car title loan. This is another key consideration that title loan companies consider when issuing loans. Of course, the dollar amount you’re seeking may not align perfectly with what you’re qualified to borrow, but with the knowledge of what you need, a lender will do their absolute best to assist you.
Car title loans are a great way to borrow money for a short time period, especially when you have a pressing financial issue to take care of. As long as you own your car outright, have a job and photo ID, and meet your state’s age requirements, you can get cash today.
Featured image source: Freepik (Affiliate Link)
