Financial emergencies that are unexpected are among the most stressful! Not only can they catch you by surprise, but they also require immediate financial attention, and are costly to deal with. If you’re struggling with the difficulty of paying medical bills or paying for costs, you require some way to solve your financial problems and the solution could be the car title loan. If you’re not familiar with this concept, a car-title loan is a loan for short periods that permits a borrower to utilize your title from their vehicle or SUV as collateral for cash. This finance option if you’re searching for a quick and easy method to access money without an excellent credit score or evidence of employment. If you require urgent cash or have failed attempted to obtain an ordinary loan, the car title loan that does not consider your credit history might be the best option to obtain the cash you require.
While you can apply for an online title loan, however, you must bring your car and needed documents to the lending shop of the lender, where they will check the condition of your vehicle as well as the authenticity of the documents. Once you have received the cash the lender will keep the title to your vehicle and you’re required to repay the loan after 30days for the title to be returned to your vehicle.
If you’ve never made an application for this loan prior to now and aren’t sure how to apply or what you need to do to apply for it, then you’re on the right path. Keep reading to find out more about the criteria to qualify for a title car loan.
The documents required to get an Auto Title Loan
Although title loans are simple to obtain, lenders usually times require specific documents to prove that you’re who you claim to be and whether the vehicle is actually owned by you. The lender will require one or more required documents before they can allow you to access the funds. For example, to obtain a loan on your car title you’ll need:
- The original title of the vehicle that shows evidence of ownership
- A valid ID issued by the government that is in good standing with the name on the title
- Valid and current car registration
- Contact Information Include your name, contact names, addresses for emails, and at minimum two references.
- Proof of insurance for your vehicle
- Evidence of residency that matches the information on the ID and the title
- Copies of the car keys
- Evidence of the ability in remunerating the loan. repay the loan
In some rare cases the lender may request for you to add the GPS tracking device on your vehicle, should they have to take possession of the vehicle because of the default of payment.
Car Title Requirements for Loans
- Before requesting an auto Title loan, the lender may ask potential applicants to:
- Be at least 18 years old.
- Have one of the following: a motorcycle, car or truck, semi-truck, or any other vehicle
- Have a stable stream of earnings. If you do not have this, benefits like unemployment, retirement, or social benefits will suffice.
- Possess a lien-free vehicle title
- Bring their car down to the shop for a visual evaluation. If your car is in good condition the lender will grant you the loan on the market value of your vehicle as well as other requirements specific to your state.
Fees and Rates
The limit of an auto title loan typically ranges from 25 to 50 percent of the car’s current market value. The interest rates differ between states but typically are determined at 25 percent per month.