Car Title Collateral Loans, Getting a car title loan, pink slip loans

Car Title Loans, What You Need To Know

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Using Your Car As Collateral For A Loan

It isn’t news to anyone these days that the economy is pretty bad. Job losses, and banks not lending money to those who need it makes it very tough on people today. We are all watching every penny we spend these days due this economic downturn. But unfortunately no matter how hard you try to save, some unexpected bill will pop up and you find yourself reaching deep into your savings, if you still have savings. That is when you will need to borrow money, and this is where a car title loan may help.

As you probably know, trying to borrow money from a bank these days is very hard to do. First of all, it seems some banks just aren’t lending money out. If they are, you must have a very high credit score in order for them to do so. Well most of us don’t have that high credit score. Some of us have maybe missed a bill or paid one late. Perhaps you have maxed out your credit cards. This is all bad for a credit score.

So where do you turn for bad credit personal loans? You could use a payday loan. These are quick an easy loans to get, but come with a very high interest rate.

If you own your car, and need short term cash, then looking into car title loans might be your answer.

Why a car title loan? This might be the easiest loan to get. This is because you are using your car as collateral for a loan. If you own your car free and clear of any debts or loans against the car title, then you may be eligible for a loan. What can make a title loan appealing is that you still have use of your car while paying off the loan.

If your car has no loans against it, and you hold a clear title to the car, then you have a very good chance of getting that loan. Car title loan lenders will usually loan up to half the value of your car. This is known as a secured loan. The lender will determine the worth of your car by checking out its wholesale value. This is determined by taking into account the age of the car, its condition and number of miles on it and the options on the car. You can get a rough estimate of the value of your car by checking for it online. The car must also have passed inspection and carry auto insurance on it.

After that, the lender will want to see a recent pay stub. This is to determine if you make enough to pay the loan back. There are some lenders who won’t ask for a pay stub, but they will charge you a higher interest rate. If you are receiving an unemployment check or disability check, some lenders will accept that as proof of steady income.

You will need to verify your identity. Bringing a valid drivers license, your social security card and proof of title and insurance can do this.

The lender will also want to see proof of residency. This can be done by showing a mortgage payment, or rent agreement or some type of utility bill (electric, gas, phone).

Shopping for a car title loan

When looking for a car title loan, you will also see it advertised under other names. They are sometimes called pink slip loans, car collateral loans, auto collateral loans and title collateral loans.

You can shop locally for a title loan. You will usually find a few in your town or nearby. You could travel to each one to find out what their loan rates and terms are. It might be much easier for you to get a car title loan online. Many lenders now use the Internet to make car title loans. This makes it much simpler for you to look for the best interest rates. You can also fill out the application online. Just supply all of the information they request so they can start to process your loan application.

Get a car title loan fast, in under an hour

Since you are using your car as collateral for a loan, it really doesn’t take long for the lender to decide if they will give you a pink slip car loan. No need for lengthy credit score reviews and pulling your credit history.

In fact, some car title lenders can give you your money in about an hour. Typically it will be less than 24 hours to have the money given to you or sent to your bank account. But some lenders are very fast.

You need to remember that this is a short-term loan. Car title loans are usually for 14 to 30 days. Depending on the state you live in, these loans can be rolled over for another 14 to 30 days. Ask the lender before accepting the loan.

What if you don’t pay back the loan? If you think you will not be able to pay back the loan, or might even be late with it, talk to your lender. If you are in default of the loan, then the lender has the right to go and repossess your car. You would then lose your car to the lender.

As you can see, getting a car title loan is easy and can help you out of a cash jam, but you will need to be careful or you could lose your car.

Do some more research to find the right online car title loan for your needs.

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