How Does a Title Loan Work?
You need cash. You need a financial solution. You’re just like every other American – sometimes you need a temporary cash advance to help you overcome unexpected bills and repairs. That’s normal and you’re entitled to use your assets to help you fill in the gaps in your budget. How does a title loan work? It provides that last-minute assistance you need to not only catch up, but to get ahead.
You’ve heard all about how a title loan helped your friend through a financial rough patch and now you’re interested in finding out if it could work for you too. It sounds too good to be true. Just temporarily give a loan company the title to your car and get cash in return? Is that all there is to it? How does a title loan work?
First: Don’t Panic
It’s normal to feel stressed when you’re trying to keep late notices at bay and maintain enough money in your bank account to buy groceries, gas and pay your rent or mortgage on time. It’s a hefty responsibility, but don’t feel discouraged. If you have a car that’s completely paid off, you have the answer sitting in your driveway.
How Does a Title Loan Work? Understand the Process – It’s Easy
A title loan isn’t like a credit card or a payday loan. When you swipe plastic or take out a payday loan, you’re taking an advance for money that is yet to be made. When you get a title loan, you’re using a valuable item that you already own as security for cash. It’s usually safer and more secure, two of the top characteristics you should look for when you are researching cash advance options.
How does a title loan work? Here’s an outline of the basic process:
- Fill out an application online
- Talk to a title loan representative about what you want and need
- Get a personalized quote
- Review and accept the loan terms
- Give your physical title to the loan office
- Get cash in hand or deposited to your bank account
- Pay the money back on schedule
- Your title is returned as soon as you make the last payment
It’s straightforward. It’s easy. That’s why car owners start by asking, “how does a title loan work?” and their next question is usually, “how do I apply?”
Does My Credit Score Matter?
Of course, since you’re an educated borrower, you probably have a few questions about the details. First off, what if your credit score is less than perfect?
Many borrowers consider title loans for one primary reason: your credit doesn’t matter. Even though some lenders in certain locations might still check your credit, most let your paid-off car vouch for your dedication and commitment.
Do I Get to Keep My Car?
Don’t get confused – you’re not selling your car or giving your vehicle to the lender. You can drive your vehicle throughout the length of the loan. All you’re doing is letting them hold the title, the piece of paper that says you’re the sole owner of the car. This is used as collateral for your loan. If you don’t pay it back, they can repossess your vehicle because they have the title. When you do pay it back according to the terms of your loan, your title is returned to you right away.
How Long Do I Have to Repay the Cash?
Just like every car is worth a different amount based on its make, model and condition, every title loan is different too. The exact amount you’re eligible for and the amount of time you have to pay it back depends on how much you borrow and your personalized offer from the title loan lender. You may have a few months to pay the money back or you could have over a year.
Let’s Get Started
Now that you have a better idea of what to expect, why not fill out a quick application and find out exactly how much your car is worth? There is no commitment involved with a quote and it can help you get a detailed vision of what a title loan has to offer you personally.
How does a title loan work? It works for you. Call (888) 663-7074 if you have more questions or fill out the form with the basic details on your car for a free, fast quote. Click here to contact us today.