There are lots of ways to borrow money, but when it comes to getting a lot of money very quickly, title loans are one of the best options available. They have very specific requirements, and the application process is different than most loan types. In this post I want to show you how these loans work so that you’re able to make an educated decision as to whether this loan is a good decision.
The most important requirement is that you have a car that has been paid off. This car becomes the loan’s collateral and you’ll be borrowing a percentage of its value. Along with the car you will have to be employed, have a checking account, and be able to verify your current address. The lender will likely check your credit report, but they don’t really care what your score is. What they’re looking at is if you have any other current loans that will conflict with paying back a new one.
Some lenders will allow you to fill out your application online, but not all. This saves a ton of time if it’s available to you. After the application is filled out your car will have to be inspected by the lender. Most of the time this means driving down to their office, but a new trend is to have the lender come to you (which makes life much easier!).
Loans will generally start around $1500 and you will be offered several options to get it repaid. Shorter loan terms will mean larger monthly payments, but the overall interest payment will be much less. It’s likely you’ll be offered anywhere from six months to two years to pay everything back.
Title loans aren’t the only loan in town, but if you meet their specific requirements it may be a good move when you need money quickly.