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About 78% of workers live paycheck to paycheck. If you’re one of these people, you know the panic that sets in when an unexpected bill pops up. There are several short term lending solutions out there for these situations.
One of them is a car title loan. This solution may be the source of money that you need to tie you over from one paycheck to the next.
Keep reading to learn more about car title loans and if one is right for you.
What Is a Car Title Loan?
These are loans that are for a small amount of money and for a short period of time. To get the loan, you’ll give the lender the title to your vehicle. Then you’ll pay a fee and borrow the money for 30 days.
Once you repay the loan, the lender returns the title. If you fail to repay the loan, the lender can take ownership of your vehicle and sell it to repay the owed balance of your loan.
The car acts as the collateral to secure your loan.
Advantages of a Title Loan
If you’re interested in getting cash fast, then these are the loans for you. The process is typically a quick one. You can go in person or apply online.
The lender won’t look at your credit score or history because they have your car as collateral to secure their loan. This reduces their risk.
This type of loan works well for smaller loan amounts that are a few thousand dollars or less. The value of your car may influence how much money you can borrow.
What You Need to Apply
If you’re interested in getting a title loan, you should gather your documents ahead of time. This will make the application process smoother and make it more likely you’ll get approved.
You should have a government-issued ID or driver’s license. Be able to show proof of residency, such as something with your address on it, like a utility bill.
Some lenders will ask for references. You’ll need the contact information of these people if your lender asks for this.
Finally, you’ll need a vehicle that you own, with the title in your name. The car can’t be subject to joint ownership where it’s in yours and someone else’s name. It also can’t be subject to other loans, so you must own it outright.
Get a Car Title Loan Today
If this all sounds great, then a car title loan may be the perfect solution to your financial struggles. Gather your documents and be sure that you can qualify for this type of loan by owning your car outright.
Then apply online or in-person and receive your cash. Be sure that you can pay off your loan; you’re putting the ownership of your car on the line. Try American Pride Legal Funding to get a car loan.
Check out the business and finance section of our blog for money helpful money related articles.