2. Introduction
Sometimes in life, situations arise where you need
money for something and you just don’t have it. No
one wishes those types of scenarios to occur, but
they do anyway and it’s nice if you have an option
when they come around.
One option that not a lot of people know about is
the auto title loan. Here is some basic information
to help get you up to speed.
3. What Are Auto Title Loans?
According to Prudent Financial Services, auto title
loans are loans that you can get by using your paid
off vehicle as collateral.
Basically, your car or
truck acts as security for
the amount of the loan
and you can still have full
use of the vehicle as long
as you make your
payments.
4. What Are Auto Title Loans?
The terms of auto title loans will vary depending
on the lender, but you can usually get a larger
loan amount and lower interest rate than with a
personal loan.
It’s also common to get a longer period of time to
pay the loan back than the typical personal loan.
5. Who Qualifies for Auto Title Loans?
Of course, not just anyone
with a car can drive up
and get themselves a nice,
chunky loan. It usually
doesn’t matter if you own
a car, van, truck or SUV,
but certain conditions
must be met in order to
qualify.
6. Who Qualifies for Auto Title Loans?
These too can vary slightly, but here are some
common conditions:
Vehicle must be completely paid off with no liens or leases.
Most vehicles must be no more than six-years old.
The vehicle must be fully insured in your name only.
The vehicle ownership must be in your name only.
If another name is on the vehicle ownership, they must co-sign.
The vehicle must have current, up to date license plates.
Can use a company vehicle if you own the company.
7. Is Credit Important?
Whether or not credit score and credit history is
important to the process is up to the individual
lender. Some places will require a decent credit
score in order to qualify, while others use auto
title loans as a means of helping people with
questionable credit.
8. Is Credit Important?
Some lenders feel that as long as you meet all of
the requirements of the auto title loan, you are
eligible to receive a loan because they have their
bases covered.
9. Is Credit Important?
If your credit isn’t exemplary but you meet all the
other criteria, be sure to mention that when you
contact the lender about the loan.
10. How Do You Apply?
Auto title loans usually don’t take very long to
process. Some places have online applications,
while others will require you to go into the office
and fill out an application.
Since you either meet the loan requirements or
you don’t, you can usually find out how much
you’ll get within the same day. In some cases,
you might see the money by the end of the next
business day.
11. Benefits of Auto Title Loans
It’s easy to see the benefits of car title loans. Not
only is the process convenient and fast, but you
don’t have to jump through hoops with banks and
financial institutions to get it all done.
For anyone who has experienced that sinking
feeling when you try to take out a personal loan
and are rejected, auto title loans might be a
viable alternative.
12. Reasons People Seek Auto Title Loans
There are no real ‘set
reasons’ that someone tries
to get an auto title loan.
Basically, they need money
for tuition or debt
consolidation or a home
renovation or a wedding.
13. Reasons People Seek Auto Title Loans
People seek auto title loans for the same reasons
they seek any type of personal loan. It’s likely
more the concept that gets them pointed in the
direction of an auto title loan.
This is just a different way to access money when
you need it, and it’s a way that many people
prefer to conventional methods.