When you need money in a hurry, you might want to consider getting a title loan. These loans are often quite easy to get, and they do not have all the other requirements that other types of loans have associated with them.
Credit Check Not Needed
An advantage of getting a title loan is that your current credit score really does not matter. Even someone with bad credit may be able to get a title loan. Most businesses that offer title loans do not check your credit score because your car is the collateral. If you want to borrow more than $1,000, however, Wikipedia says you will likely need to have good credit.
Car Title Loans Are Usually Short Term Loans
The money obtained from a car title lender is generally only going to be for about 30 days. This means you will need to pay it back in full in 30 days, with interest, or you risk losing your car.
Many car title loan dealers have websites that will let you apply online. You can submit an application quickly. If you are approved for the loan, you will need to send further documentation.
The Interest Is Often Very High
Title loans often have high interest rates, but that will often depend on what state you live in. Some states have placed a cap on these loans at 36 percent, but in some places it may be as high as 400 percent.
How Much Money Can You Get
The amount of money you can get from a title loan depends on several things. Different companies will specify how much they can make available. Some companies, for instance, will start out at $100, but others start out at $1,000. It is possible to get as much as $10,000 from a few title loan offices.
The money you will be able to get depends partially on your car and on your ability to repay the loan back. The car’s current value and its condition will certainly be taken into consideration.
What Is Needed to Apply?
Besides your car and income, a valid photo ID will be needed, along with proof of your present address and proof of income. For proof of income, you can bring recent paycheck stubs or bank statements. You will have to bring in your original car title, too, and it will need to be clear of any liens. You will be leaving it with them if they approve your loan. You may also be asked to provide a VIN number and to leave a duplicate key with them. In some cases, your car may need to meet a minimum value.
Before you apply for a title loan, Consumer.gov suggests that you find out the total cost of the loan, as well as the APR. You should also be sure to borrow only as much as you are sure you can repay on time.