You may qualify for a title loan if you need quick cash for a financial emergency. A title loan is a special short-term advance for residents who own their vehicles. Therefore, if you have a vehicle title in your possession, then you are well on your way to qualifying for such an advance. You must also be 18 years of age or older, and you should be a citizen of the country in which you are applying.
What Is a Title Loan?
A title loan is a loan against the value of your vehicle. Title lenders will loan you money that is equal to the current market value of your car. Therefore, you may be able to receive a loan of $500 for an extremely old car that is not in good cosmetic condition. Alternatively, you may be able to obtain a loan that is as high as $5,000 or more if you own a new vehicle. Title lenders usually do not discriminate as far as accepting vehicles. As long as your car is in working order, a title lender will accept any make, year and model.
How It Works
If you are interested in obtaining a title loan, you will have to contact a lender in your area. Some lenders have specialists who come to your home to assess the value of your car, while other lenders ask that you visit their locations with the vehicle and the title. The specialist will develop an offer figure based on the vehicle's condition, mileage and so forth. If you agree with the offer, you can accept the arrangement.
You will have to allow the lender to place a lien on your vehicle just in case you do not repay the advance. Therefore, the lender will have the right to repossess your vehicle if you default on the loan. You will want to make sure that you are financially prepared to repay the title loan within 30 days of disbursement. Some lenders may be willing to work with you, but you do not want to take that kind of a chance with your car.
Title loans are contract arrangements, so you will need to sign a contract before the lender releases funds to you. You must be sure to read every word in the contract so you will know what the lender expects from you as far as interest rates and fees.