Unfortunately, it’s not impossible to encounter a situation that involves significant financial hardship. This could be due to a medical emergency, a natural disaster, or the loss of one’s job.
A car title loan is a viable option in order to help you get back on your feet. However, not everybody knows everything that they need to when it comes to securing one.
Let’s take a look at what you need to keep in mind.
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What Documents Do I Need?
Before you can move forward with the process, you will need to gather a handful of documents in order to have a chance of approval. Fortunately, it is unlikely that you will encounter complications when doing so.
As you might guess, your vehicle title is one of the most important pieces of information have on hand. Second, you’ll need to have your government-issued ID.
Depending on the state you live in, you may need to provide additional documentation. This could include vehicle registration, proof of residency, or even proof of income.
If you are required to prove your income, the standards you must meet will depend on the total value of your loan. To clarify, those who are seeking a loan for tens of thousands of dollars will need to have a higher monthly income compared to someone who only needs a few thousand.
If you do not have access to all this information, it’s best to hold off on applying until you do. Otherwise, you may find yourself in a situation where you are unable to progress with your application.
How Do I Go About Getting One?
For those who are unaware, getting a title loan is a relatively straightforward process.
Once you find a lender with who you are willing to work, you will need to provide them with your vehicle title. After they verify your identity, they will begin the approval process.
As previously mentioned, you may be required to provide additional documentation depending on the state you reside in and the terms the lender imposes. In many cases, however, approval often takes less than 30 minutes.
Those who have been approved and received funding are still able to drive their car during the repayment of the loan. This is part of what makes this option so attractive for those who find themselves in need of extra cash.
What Other Requirements Do I Need to Keep In Mind?
It’s important to note that there are typically other requirements that you’ll need to meet before you are able to apply.
Primarily, you need to be at least 18 years of age in order to secure a title loan. As you might guess, the title of the vehicle must also be in your name.
After all, it wouldn’t be very ethical if lenders were to procure the title of someone who was completely unaware of the situation.
The title must also be lien-free. For those who are unfamiliar with this term, this is a legal claim that lenders file when they were given collateral in order to secure a loan.
So, let’s assume that you offer your house as collateral for a small business loan. If you fail to repay this loan, a lien may be placed on your property.
This means that there’s a possibility that your lender could acquire ownership of your home. A lender will not accept a car title that has had a lien placed on it by a previous lender.
This is due to the fact that the individual presenting the title technically does not own it.
The lender may also need to inspect your vehicle. This is to help prevent situations where someone offers a car that is virtually worthless as collateral to secure a loan.
In a scenario like this, there would be virtually no point in the lender pursuing ownership of the title since the car would not have any inherent value.
As you might guess, the total amount of money that a lender will provide you is heavily influenced by the value of your vehicle. You can visit this resource to learn more about car title loan requirements.
How Do I Find a Reputable Lender?
Many people fear that they will not be able to easily find a reputable lender. Fortunately, it’s much easier than you might anticipate.
The first attribute you will need to consider is the terms of your loan. If you feel as though they are predatory (a notably short repayment period, extremely high interest rate, etc.) it’s in your best interest to look elsewhere.
Your lender should also be willing to offer you an appropriate amount based on the value of your vehicle. For instance, if your car is worth approximately $20,000, you should never accept the money from a lender who is only willing to offer you $5000.
As a general rule of thumb, the more flexible a lender is, the better your experience will be.
Getting a Car Title Loan Is Easier Than You Think
So, keep the above information in mind during the process so that you can navigate it accordingly. This will help you ensure that you are able to secure a title loan as quickly as possible with little difficulty.
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