If you need to get money right now, a car title loan is going to be one of the most reliable ways to do so.
These are secured loans that give you the ability to get a large amount of money very quickly. In this article I want to show you what it takes to get approved for these, their risks, and their major benefits over other types of fast cash loans.
Qualifying for a title loan is pretty straight forward. You’re going to need to own a car that is paid off in full and have the title for it.
Most lenders don’t have any problems working with loans that were cosigned. Generally, you’ll be able to keep driving your car while your loan is out, but you’ll probably still need an extra key to give the lender.
There is no credit check involved, so don’t let that worry you. A new trend is that you’re able to start your loan application online, and then drive to the loan office to have your car checked out.
This will save you a ton of time since your loan will probably be approved by the time you show up at the office.
The most obvious risk here is that if you don’t pay your loan back your car will be repossessed. These loans are also pretty expensive, but that’s something that you’re going to have to accept when you need money on such short notice.
The biggest differences with these loans, compared to payday loans, are the amount you can borrow and the flexibility in repaying it.
If you have a fairly nice car, you can borrow quite a bit for a title loan since most lenders will go as high as 50% of the car’s street value. Since these are larger loans, you’re going to have much more time to repay them. Rather than two weeks, you will have as much as six months worth of biweekly payments on your loan.
If you’re comfortable with the price and the risk, a title loan is a good way to raise a lot of cash quickly. Just please don’t screw around and get your car repossessed! That will be a mistake that you’ll have a hard time dealing with!