A car title loan is a small short-term personal loan which retains your car’s title as collateral for the loan. Since the loan is secured, it will not incur the high rates of interest associated with other forms of short-term lending such as the cash advance. Also you are able to receive cash immediately for any type of emergency circumstance.

The first thing you’ll need to do is arrive at the true equity you now have in your automobile. If you currently do not own your car, it is very unlikely you are in possession of the title. However if you are looking to borrow money from a car title loan lender, you will need your title in order to apply for the loan.

Secondly look for an auto title loan lender that offers instant cash. These are companies that are dedicated to lending money based on the equity you now have in your car. You can find a significant number of auto title loan companies online. Generally the application process is very easy. All that is needed is that you visit the lender’s website, provide some basic personal information and hit the submit button. You should receive a preapproval in minutes.

Third, you will visit the lender and provide him or her with the title information as well as show him or her the automobile you wish to offer as collateral for the loan. He or she will assess the general condition of your car and provide a percentage of the car’s value based on the Kelley Blue Book.

The terms of the loan are explained and you are out the door with your cash in a matter of minutes.

Car title loans will allow you to take the equity you now have in your automobile in order to receive instant cash when an unanticipated emergency takes place. Basically, you are assuming the risk to some degree by offering your car’s equity as collateral for the loan amount however the benefits to the borrower far outweigh the risks. The advantages are numerous over other loan options. The automobile title loan is essentially more convenient and it is a very quick way to attain cash when compared to other alternatives. Following are some of the advantages of attaining an automobile title loan:
Better interest rates than other short term alternatives.

The automobile you use in which to secure the loan creates less of a risk for the lending institution. It is understandable that a lender who assumes less risk will invariably not need to charge much in fees with regard to financing. This simply means you attain lower rates of interest when you provide your vehicle as collateral for the loan as opposed to other forms of unsecured short-term financing. (One example of a short term loan is the payday loan.) Over time rates of interest make a substantial difference in what you are charged. Since car title loans must be used at times when it is urgent that the borrower receive cash, it is in your best interest that you not pay more than what is necessary in order to obtain the loan. In fact paying rates of interest that are relatively too high on a loan for emergency cash can place you in a financial position where you are worse off than you had been prior to borrowing. The auto title loan solves the dilemma from the standpoint it allows the borrower to attain a short-term cash solution without assessing any more in fees and interest than is necessary.

Quicker to attain than a home equity solution

A home equity loan is another alternative to automobile title loans. Both types of financing are short-term solutions. Further it is not easy to determine the true equity of your home without assessing its market value and what you’ve paid into it. When you compare this to how easy it is to attain a quick value on an automobile it is like comparing an apple to an orange. It is not difficult for the lender to arrive at a figure with regard to your car’s actual worth or equity. He or she merely refers to the Kelly Blue Book value or the listed value of the car derived from the National Auto Dealer Association. He or she can quickly find out your car’s value at most any time. Additionally the auto title loan lender keeps your car’s title for the duration of the loan as collateral and allows you the benefit of still driving it. The real estate market is naturally volatile and is never this reliable.

More effortless than personal loans

Personal loans can be extremely difficult to attain for persons with less than favorable credit. Generally speaking a personal loan is granted taking into consideration your credit score, salary, credit history and other factors. If your credit isn’t the best and you need quick cash, it makes a great deal more sense to use the automobile you own which has retained a fair amount of equity as collateral for the loan. Additionally there is no credit check involved when attaining an auto title loan.

Quite easily the car title loan is your best option when you need a short-term reasonable cash solution between pay periods.

The Car Title Loan Process Explained

Many individuals who wish to attain an automobile title loan will ask the question: is a car title loan right for me? In order to answer the question you must understand a bit about the process and the kind of situation where you will need a car title loan.

First attaining a vehicle title loan is very easy. Most lenders have made the process quick and simple to make certain your experience is positive and you attain the cash you need quickly. The entire title loan process normally takes shape in three easy steps. You can have emergency cash in your hands the same day you apply. Additionally you can easily qualify for a title loan. This is because you are using the equity you’ve placed in your automobile in order to attain the loan. You are not transacting a sale of the automobile – simply putting the vehicle title up to the lender as a form of collateral for the loan amount.

The first step is to apply online

If you are needing emergency cash between pay periods for any reason whatsoever then the automobile title loan is what you need. First the application process is very easy and you do not need favorable credit or even a credit history in order to apply. Secondly, you will need the title to the car you are offering as a source of collateral. Generally, if you own the car outright you will have the document. The auto title loan process is quick and painless with interest rates falling below what other short term lenders generally charge for loans (such as loan companies offering payday loan short-term cash solutions).

Step one is then to apply online. There you will fill out a very short application that generally takes about two minutes of your time. Almost instantaneously you will receive a pre-approval for your loan. It is then you’ll want to attain your car title and head to the lenders nearest office.
Step two is once at the lenders office you will show your identification such as a driver’s license and the car’s title. He or she will inspect your car and offer you a percentage of the Kelley Blue Book price (see blog on Kelley Blue Book) as the loan amount. If everything is agreeable as far as terms you leave the office with your cash.

Further, once you pay the loan off your borrowing history starts to improve because the auto title loan lender reports your timely payments to the credit bureaus.

Is the vehicle title loan right short-term cash solution?

So is an automobile title loan right for you? This can be answered based on the application process. If you answer yes to the following questions then more than likely a vehicle title loan is the right one:

1. Do you have less than favorable credit however need a short-term cash solution between paydays with interest rates that are lower than what other alternative lenders charge?
2. Do you have the title to your car?
3. Is the title free of liens?
4. Is your car in good running order and condition?
5. Are you needing emergency cash and have the money to pay back the loan amount ( if terms are reasonable) within a short period of time?
6. Are you willing to place your car up as collateral for the loan?
7. Do you like the idea that once the loan is paid your credit history will improve?
8. Are you the type of person who likes an application process that is short, simple and to the point and where you may attain the cash you need for any emergency on the same day?

If you answered yes to all of the preceding questions it is clear there are more reasons than not that you should use an automobile title loan to meet your short-term emergency cash requirements. Get online and apply today.

If you were buying a house, it is likely you’d locate one in a nice section of town and you then would want to know how much the owner is offering—in this scenario this is referred to as the home’s listing price.

Next you talk to your realtor and state you’d like their help in arriving at what the house is worth – in other words a fair asking price for the house you like. You’d then ask your agent to perform some research with regard to houses similar to it in the same general community that have sold within the last month.

Let’s say your agent comes to you and says “Here is a listing of houses comparable to the house you like as well as their listing prices.” “This is not what I wanted,” you state. “I want to know the selling price.” This is because probably none of the individuals who sold their homes received what they asked for it. The only way you will know a fair price for the house you are interested is to know the actual sales price of the comparable houses.

The idea here may seem reasonable enough however another thing happens when consumers look into purchasing used cars.

Many times you’ll visit a dealer and find an automobile of which you are interested sitting on the lot and you sit down and think about what you are willing to pay. You want to do this because naturally you’d like to have the car at the most reasonable price possible.

However, more often than not the automobile dealer will refer to a price guide to come to the car’s value. This guide is known as the Kelley Blue Book. The Kelley publishers make available several price guides for pre-owned automobiles however the one the automobile dealer is more than likely to have in his or her possession is the book titled “Kelley Blue Book Auto Market Report – Official Guide”. This is the Kelley Blue Book normally sold to car dealers.

Your car dealers will then look up the automobile of which you are interested referring to the Kelley Blue Book and direct your attention to the retail price. He or she normally states that since the price he is asking is less than the Kelley Price his price is fairer. However is it the true retail price? Basically the price shown in Kelley is merely a listing price being asked by automobile dealers. Kelley makes it clear in their book that the prices shown are “suggested retail values”

When you thing of the preceding scenario: What is the Kelley Blue Book value the dealer is showing his client? Is it the true retail price which cars similar to yours have actually sold or is it possibly a projection of the selling price?

The book makes it clear that the Kelley Blue Book is an estimate of the dealer asking price. It also states your actual sales price may vary significantly.

And as the version of the Kelley Blue Book that Kelley offers to consumers states:
The consumer version of the book varies somewhat – it states:
The retail value is representative of what a car dealer may ask for an automobile once an inspection has been made, the car has been reconditioned and warranted (dependent on automobile dealer). (Paraphrased ) The asking price is what is listed in the consumer’s version of the book. (However if you were going to buy the automobile you may expect to pay less than the asking price as everything is up to negotiation.)

Summation: The Kelley Blue Book is what an auto dealer refers to when negotiating a car’s price and it is also what an auto title loan lender refers when coming to a relative value for a car offered as collateral for a vehicle title loan. Therefore, with many car title loan lenders, the Kelley Blue Book plays a significant role in determining how much a borrower can obtain.

When reading this blog, a reader may find the term “secured loan” sprinkled throughout the posts. Many people are unsure of what exactly makes a loan secured. It’s actually a pretty simple concept. A secured loan is a loan that is based upon some kind of collateral. For instance, a car title loan is a secured loan. This is because the lender holds onto the title of the vehicle throughout the duration of the loan. By holding onto the title, the lender can be sure that he or she will be able to recover funds if the borrower were unable to pay off the loan. This makes the loan secure.

An unsecured loan is when there is no collateral. A good example of this is a loan that takes place between two friends. This loan is based upon the borrower’s word rather than any collateral. If the borrower fails to pay back the friend (lender), the lender is out of luck. There is no backup plan to recover the funds of the loan.

That’s pretty much all there is to it. Think of collateral as security. A lender obviously feels more “secure” when a loan transaction occurs based upon collateral.

This post is to help individuals better understand terms related to car title loans. Some popular terms used to describe a car title loan are:

• auto title loan
• title loan
• vehicle title loan
• automobile title loan
• title car loan

Throughout the country, car title loans are referred to with different terms depending on one’s location. For some basic information about car title loans, see What is a Car Title Loan?

In California, a car title loan is sometimes referred to as a pink slip loan. This is because in the California Certificate of Title is often called a “pink slip.” Therefore, a car title loan and pink slip loan essentially mean the exact same thing. The car title, or pink slip, is used as collateral to secure a loan.

Another term often used to describe a car title loan is “auto pawn.” However, this term is more confusing as it carries two meanings. While with some companies, an auto pawn is the same thing as a title loan, with other companies, it is something different. An auto pawn also refers to a loan where the car is used as collateral rather than the title. Like pawning jewelry, an auto pawn is when the lender, or pawn broker, holds onto the car until the loan amount is paid off. This is different from a car title loan because with a title loan, the borrower can continue to drive their car.

Sources:

http://www.ca-cartitleloans.com/what-is-a-pink-slip-loan.html

http://www.ca-cartitleloans.com/california-auto-pawn.html

Many people are often confused by the differences between a car loan and a car title loan. The middle word “title” completely changes the type of financial aid. A car loan is a source of financial aid in which a borrower obtains money to purchase a new automobile. A car title loan is when the borrower uses the title of their already owned car as collateral for a cash loan to satisfy any financial need.

A car title loan offers much more versatility because a borrower can use the cash for anything they need. Whereas a car loan is solely used for the purchase of a new vehicle. Often, car title loans require no credit check and a borrower can easily obtain cash even with a tainted credit history.

Both types of loans are great funding options depending on the situation the borrower is in. For fast cash for any financial need, use a car title loan. For help with purchasing a new car, a car loan would fit one’s needs.

Resources:
http://www.carloan.com
http://www.ezloanlookup.com

Many companies that offer car title loans possess similar requirements. Some lenders are stricter than others. Typically, the interest rate that an auto title loan lender offers has an indirect relationship with the amount of requirements. This means that in many cases, the more requirements a lender has, the lower their interest rate. While the less requirements a lender has, the higher the interest rate. However, this is a general rule of thumb and shouldn’t be considered standard for the car title loan industry. Some general requirements many companies have are proof of vehicle ownership and 18 years of age. This can vary as some companies require borrowers to be 21 years of age. Some companies require that an individual show proof of income and sometimes a paid off bill. Wherever you choose to get a title loan, the lender will definitely have requirements. Every lender will require the borrower to own the vehicle outright. Other than that, the requirements will vary, but will be similar. Some companies may even offer a no credit check car title loan!