The ABC’s of Vehicle Title Loans
You might have heard of vehicle title loans before—but now you’re finally researching it in earnest. The only problem is, you can’t seem to find a straight answer as to what these loans are and what they require from your end.
If you want to make sense of all the confusion and reduce the online clutter, let’s get back to basics. Here are the ABC’s of vehicle title loans—and why you might be just the right person to secure one for yourself with The Net Lender.
With vehicle title loans, it all starts with the automobile. Think about it this way: in order to acquire a title loan for yourself, you have to put in collateral. This way, the lender knows that even if you default on the loan, at least they’ll be able to salvage some value out of the transaction.
In this case, the collateral is simply your automobile. That’s the “A” in your ABCs of title loans, and it’s an important letter to remember.
Why? Because title loans come with one very important risk: if you don’t pay off your loan in time, you could lose your car.
It sounds scary at first, but remember that putting up your automobile’s title is one of the best ways to get back on your feet. You’re putting up risk, sure, but so is the lender: they’re risking the possibility that you don’t pay off the loan.
The truth is, if you pay off your loan on time and stick to a plan, you should have no problem repaying the debt and getting back the title of your car. (Keep in mind that when a title loan takes place, you’re typically required to bring in the physical title to the lender). Once the loan is paid off, you’re free of the debt and can continue driving your automobile, just like before.
Who is the borrower? Specifically, who are you, and what might make you an ideal recipient of a vehicle title loan?
The reason you’re asked to put up something as significant as the title of your car for this loan is simple. Your credit history makes you a risk for lenders. They see that you’ve had trouble paying off debts in the past and can only surmise that you might be something of a risk if they were to give you another loan—even if that’s a short-term loan with high interest rates.
Typically, the people who take out vehicle title loans are those who need the following:
- An influx of quick cash. That’s the impetus for any loan, after all, so why should it be any different here? Keep in mind that vehicle title loans usually only provide quick, short-term cash. They won’t be as big as a mortgage or even a significant business loan. Additionally, many people who use vehicle title loans don’t have a lot of income to work with, which is why they need to turn to short-term loans in times of emergency.
- A way to build a new credit history. When you’re a high-risk borrower, it’s difficult to find lenders who will work with you. If you want to start building a credit history that actually looks on you more favorably, short-term loans and putting up a title as collateral may be your only options. Fortunately, this opportunity to get back on track can be easy when you stick to a payment plan.
As a borrower, you’ll be responsible for a lot. But when you look at what really goes into a vehicle title loan and understand what it’s really about, you’ll find that it can be one of the most convenient ways to acquire some quick cash without sacrificing your future paycheck.
The most important aspect of the loan from your end starts with a C: cash. It’s the short-term cash that brings borrowers to vehicle title loans.
How much cash can you expect? Well, that depends. Typically, a car title loan will go for up to $10,000 in cash—with a lot of flexibility. But you will have to provide some things from your end, including how much money you currently earn, in order to take out this kind of loan.
You’ll also want to be aware of how the amount of money you owe can add up over time with interest. As vehicle title loans are short-term loans, they come with a lot of interest. Failing to pay for even just a short time can add up a lot of money that you never intended to spend in the first place, which sends some people in a tailspin.
This is easy to avoid, however, if you simply stick with the terms of your loan. So before you even secure your vehicle title loan, make sure that the terms are realistic for you.
There’s more good news: if you have everything you need, including the following…
- A valid driver’s license
- Lien-free title on a vehicle (i.e., no one else owns it)
- Proof of auto insurance
- Proof that you earn more than $1,200 a month
…then it’s actually quite easy to realize this cash from a borrower. After all, these are the ABC’s, here: this isn’t rocket science!
The best way to go about finding a quality loan is to find a lender with a good reputation and online presence so you can be sure they’ve been in the business a while. Then make sure that you have everything necessary as listed above—you don’t want to get a step into the process and then find out you were ineligible all along.
Call Or Apply Today for Our Vehicle Title Loans
After that, reach out to a good lender. You can contact us at (888) 663-7074 or find our closest location to you and let us know about your situation, or simply request a quote to get the process started. You’ll be asked to fill out the appropriate application and you’ll be well on your way to receiving the quick cash you need.