Fund Your Dreams with The Value of Your Car
You either saved up enough cash to buy your vehicle outright, or spent at least a couple of years paying off a car loan. Now that you have equity in your car, if you need cash to pay bills or take care of other obligations, it’s a simple task to get the money you need!
One of the easiest ways you can take advantage of your vehicle’s equity is through a car title loan. If you need money quickly, title loan companies can provide you with cash based on the value of your car, your monthly budget, and how much money you need.
Who qualifies for a car title loan?
Almost anyone qualifies for a title loan, as long as they meet basic common criteria, regardless of their credit score.
Title loan companies require you to own your car, for your car’s title to be free from liens, and for you to be at least 18 years old. Some age laws vary by state, however, so check with your local title loan company to verify.
With no other requirements, title loans are the easiest short-term loan you can get when you need money fast.
What are the benefits of title loans?
The best part about getting a title loan on your vehicle’s equity is that you get to keep your car while you pay back your loan. Once you’ve paid in full, your title is returned to you. As long as you pay back your loan, you continue car ownership with no future penalties. You can even take out title loans on the same vehicle over and over again if you need to.
Title loans have lower interest rates than personal loans, because your car title acts as insurance that you will pay back your loan. You also will not need to pay a loan origination fee, like you would with a personal loan through a traditional lender. If you know you can pay back your loan, you have nothing to lose by applying for one.
Applications for title loans tend to be short and to-the-point. The questions are simple to understand and it doesn’t take long at all to fill out paperwork.
Another great thing is that title loan companies don’t check your credit because they use your car title as collateral. This makes title loans perfect for people with a history of poor credit.
Car title loan companies understand that not everyone has perfect credit, and they don’t hold it against you. Instead, they want to help you get the money you need instead of making you jump through hoops or feel defeated after getting denied for loans over and over again elsewhere.
Car title loans are given to you in cash. You do not need to make a separate trip to the bank to cash or deposit a check, or to wait for a bank to process the check. You can use your money right away.
How do I pay back a title loan?
Most title loans are repaid on a 60-day term, but many title loan companies are flexible with you on the duration of your loan, especially if you commit to making steady payments. Look for car title loan companies who offer renewable repayment options if you need more flexibility when paying back the loan.
If you don’t repay your loan on your agreed-upon schedule and don’t contact the lender to update your repayment terms, you risk repossession of your vehicle. However, repossession is a long, complex process that title loan lenders prefer to avoid. Be sure to let your lender know if you need to adjust your repayment schedule.
Paying back a title loan is a simple process. You only need to drop off or mail your payments to the title loan company you borrowed money from. Some even allow you to make your payments online.
What can I do with a car title loan?
Commonly, people take out title loans for things like:
- Utility bills
- Medical bills
- Car repairs
- Construction materials for household repairs
- Technology, like computers for school or freelancing jobs
- Tuition fees for college or daycare
- New furniture
- Specialty clothing for formal occasions
- Other unexpected expenses
There are no rules about what you must use your loan money for when you take out a car title loan. If you need money for it, you can get a title loan to cover the cost. It’s totally your choice what to do with your funds. As you can see, a title loan is a great way to take advantage of your vehicle’s equity to get money when you need it.
Henry Lares is still early into his career as tech reporter but has already had his work published in many major publications including Tech Crunch and the Huffington Post. In regards to academics, Henry earned an engineering degree from Apex Technical School. Henry has a passion for emerging technology and covers upcoming products and breakthroughs in science and tech.