Car title loans present a pragmatic way to quickly get out of a financially difficult situation or an emergency. Car title loans when still making payments are available - and there are lenders available that can take your application. Read more to find out how this works.
The approval is swift and you can receive money fast. In fact, many lenders offer same day cash wherever possible.
Title loans require your car title as collateral. Many lenders will issue the loan only if you have a free and clear title to your vehicle. However, there are some lenders who might offer a title loan even when there are a few installments left from your car loan. Here’s how!
Auto title loans use your vehicle’s title as collateral for the loan. These loans are usually sought after by people who have bad credit or require quick funds.
The speediness of a car title loan depends upon how quickly you can furnish documents for approval. To find a lender see our list of top title loan companies!
Once you apply for a title loan, the lender values the equity you hold in the car and bases a loan amount on it. You can walk away with a loan the same day if you agree to the loan terms and interest rate. Loan approvals are quicker when you have a free and clear title to your car.
You might need urgent cash even while paying for monthly installments on your car. However, do not let that stop you. There are many lenders who can provide an auto title loan even if your car is still being financed or you have a few payments left.
Car title loans are based on the value of your car or the equity you hold in the vehicle. For a higher loan amount, you will need a car that is of high value. Likewise, you might be approved for a greater loan amount if there is only one or two monthly installments left on the vehicle.
You might have a good amount of equity in your vehicle depending upon the payments you have already made. A lender can increase the loan amount to cover the remaining installments.
This way the car gets a free and clear title to be used as collateral. This can actually come in helpful when you have some car installments remaining with no financial means to pay them off.
There are some lenders who can help you with your current title loan as well. There are a number of circumstances that can make you want another title loan lender.
In such cases, your current title loan is refinanced with the other lender. You get new loan terms in this process and a new lender. However, most lenders require title loans to be current. You might not qualify for a refinance if you are not up to date with payments.
You might need fast cash for a number of reasons ranging from unexpected bills, surprise expenses, or medical emergencies. Not everyone has the emergency funds to cover unexpected cash requirements. This is where title loans come in helpful.
These loans are quick and convenient. This is one of the reasons why most people facing a medical emergency prefer these loans. The approval process can be completed as quickly as within 10 minutes. You can essentially drive away with the cash within an hour of walking into a lender store front.
This is another major advantage of these loans. You might not qualify for a traditional loan with a bad credit score or poor credit history. However, car title loans use your vehicle as the collateral and do not conduct credit checks. You can qualify for decent interest rates if you prove that you have a lucrative source of income.
Unlike car pawn loans, you get to drive your vehicle. Your car’s title is used as collateral and repossession is invoked only when you fail to make repayments. Auto title loans are perfect for people who depend on their vehicle for their livelihood. You do not have to compromise on your conveyance with car title loans.
There are not many alternatives when you want quick cash and have a bad credit score. You may charge the expense to your credit card with a higher APR or take up a cash advance. Both, these options are usually more expensive than car title loans.
Not having the money to keep up with auto loan payments can be extremely stressful. It can be very difficult when you are going through financial hardships. The idea of losing your car to an auto loan provider can lead to sleepless nights.
A car title loan can help you get out of this fix temporarily by adding the car loan amount to your title loan.
This way you get to pay off your car loan and get rid of any mental burden. Car title loans come with easy repayment options as well. Most lenders will offer a repayment schedule at the time of loan disbursal. This schedule helps you plan your finances better.
If you want convenience then applying online is the best option. You can apply to multiple car title loan providers at the same time and compare individual rates.
Do not accept the first loan offer you receive even if your car is not paid up fully. There are many lenders who provide competitive rates and you should shop around for the best ones.
Choose a lender who treats you as a person and not a profit making statistic. An ideal lender will not charge prepayment penalties and make the funding available as quickly as possible.
Look for loan providers who have a high approval rate and do not charge for application. At the end you should settle for the best repayment terms and interest rates.
A car title loan can be helpful when you need quick cash. You can qualify for these loans without credit and use your car’s title as collateral even when there are installments remaining on the vehicle.
Car title loans require a proof of residence and valid government issued identification for application. In some states you might also have to show your proof of income in the form of a pay stub.