Buying a car is a big financial commitment. Whether you buy your vehicle outright or pay it off in chunks over time, the amount of money invested is significant. Not only that, but the value of your car depreciates rapidly, making it feel as though the money you’ve spent is quickly draining away. But what if your vehicle could help you out of a tight financial hole by opening the door to much-needed funds?
In fact, your car could do just that if you take out an auto title loan! A title loan allows you to borrow money, with the title of your vehicle used as collateral. This type of loan is becoming increasingly popular for reasons we’ll find out now.
What are the eligibility criteria?
One of the main reasons auto title loans are becoming so popular with Americans is that they’re easy to get hold of. Unlike a regular loan where you’re likely to be subjected to a credit check, there are few requirements for a title loan. In fact, as long as you have some kind of steady income and own your own vehicle outright, the chances are you’ll have little difficulty taking out a car title loan.
How does a title loan work?
When you take out a title loan, the lender will give you an agreed amount of money in exchange for you handing over the title to your vehicle. The amount of money you can borrow will depend on the value of your vehicle. You can find this out by looking up the Kelly Blue Book value online. You will typically be required to repay the title loan on or around your next payday. If you are borrowing a large amount of money, your repayments may be spread over several paydays. Once you have repaid the loan and interest in full, the title will be restored to you and the transaction will be complete. And the best bit is that you get to continue driving your car as normal while the loan is in place.
How do I apply?
Simply fill out the application process online so that the lender can determine whether or not you qualify for an auto title loan. If so, you will be given loan documents to sign, detailing the amount of the loan, the relevant interest rate and any penalties for failing to repay the money on time. The documents will also tell you when you must repay the title loan. Once these documents have been signed, the lender will agree a convenient time for a representative to meet with you, take photos of your vehicle and collect the vehicle title. The loan will then be processed and the money deposited directly into your account, with the whole process taking no more than a few days from start to finish.
Simple and affordable too
Not only are title loans easy to arrange, they are also an affordable way of borrowing money. Interest rates on title loans tend to be much lower than those on payday loans or cash advances, as the lender has the title of your vehicle as collateral.