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.