Car title loans are popular for their ease of access and quick pay out. When you apply for a car title loan, you will have to give the lender the title to your car to be held as collateral for the term of the loan in the event that you are unable to make payments. While you will have to submit your car title to the lender, one of the advantages of car title loans is that you may continue to drive your car freely.
Title loans are typically short term but may last several months or even up to a year. If you need a title loan, you will need to have a car that has some value and some source of income. If you currently have to contend with a poor credit score, need quick cash to resolve an emergency, or have had a loan application turned down – you might find the moneyyou need through a car title loan.
How do you apply for a car title Loan?
To get a car title loan, you will need to:
- First, own substantial equity in the vehicle—many lenders will demand that you own the vehicle outright.
- Provide the lender the title of your vehicle.
- Pay the lender a fee in exchange for receiving the loan.
- Repay the debt within the contractually agreed upon time-frame.
How long does the process take?
The process of obtaining a car title loan can vary. However, it usually takes around twenty-four hours, depending on several factors, including the amount you want to borrow and the individual requirements of the lender.
One of the reasons why car title loans are typically awarded so quickly is that most car title lenders will not consider your credit history. Lenders will focus more on the value and condition of the vehicle that you are offering as collateral. However, you can expect that they will also check on your employment status and income as part of their affordability check. To learn more about the various steps involved in the process, read this car title loans Princeton blog content by Fast Money Car Title Loans.
What is the value of your vehicle?
There are five main things the lender looks for in your vehicle to ascertain its value.
- The Year
- The Make
- The Model
- The Miles
Some important documents you need to present
When you are approved for the loan, these are what you would need to get your loan disbursed to you:
- A government-issued ID
- Title to your vehicle
- Three references that are not related to you
- Insurance (not applicable to all states)
- Social Security Card
- Pictures of your vehicle from all four angles, including VIN and Odometer
With these in place, you will sign a loan agreement with the lender, who will then become the lien holder on the title until the vehicle loan is paid off. When the loan has been paid off, the lien is removed, and the title returned to you.