Can I get A Collateral Loan On My Car?

Life is hectic nowadays. People are working to cover their expenses and maintain their lifestyle, but life is full of surprises. It can be negative or positive. And sometimes people don’t have enough money to cover them alone. Unexpected expenses also include bills which are your responsibility to pay quickly.

Bills that sometimes require cash that surpasses the amount being brought in. Especially when people are facing unexpected expenses on top of regular bills, these situations can put you on financial burden on folks when the need for extra cash arises.

Financial emergencies affect you and your day-to-day life. If your credit is in a good place, you can borrow a loan at the lowest interest rate. But if your credit is not good. You are suffering from bad credit history or low credit, and then your options become more limited to borrow cash. Banks and financial institutions do not allow you to take a loan from them because of your bad credit score.

Unexpected emergencies can arise anytime and demand instant money to solve them urgently. It takes a lot of time to research and find the best sources of money.

Why People Need Cash?

People may find themselves in need of extra cash to pay bills, pay rent or for some other necessities which need instant funds. Some of these can be-

  • Medical Bills: Medical bills are quite expensive these days, which can arise anytime in people’s life. Even when you have health insurance, health care can be costly. And it demands urgent cash to solve them quickly.
  • Home Repair: Everyone dreams of having a house of their own, and it also needs maintenance from time to time. People may also cash for home renovation or some other purpose.
  • Travelling: Sometimes, you may plan for instant travelling- maybe for a vacation or if there is an urgent need to go somewhere. Situations like this may demand an urgent need of cash for your travel expenses.

Loan Against Your Car/ Car Title Loans!

Title loan helps people who are short on cash. People who own a vehicle can use it as collateral to take a loan against it. It can be the best alternative. To get hassle-free money at the lowest interest rate without any interference. Because people don’t have time to run for finance and fill out a bunch of paperwork.

Sometimes people ask for short term loan because they need urgent cash for unexpected emergencies. If you own a clear title vehicle, you can get cash on its title. The amount of money that you can borrow partially depends on the year, make, and model of your vehicle or the market value of your car. They don’t need an amazing car. Lenders also consider an old car for a loan.

Benefits Of Car Title Loan

Keep Driving Your Car:

One of the great benefits of this loan is that the lender allows you to keep your vehicle while you are paying off the loan.

Easy and Fast Approval:

Car title loan is very convenient for people to get easy and fast approval against your title.

Accept All Credits:

Lenders allow you to borrow cash even if you have a bad credit score. No matter how bad your credit score is, you can still apply for a car title loan.

Less Paperwork:

People don’t have time to wait for a long process of paperwork. Here you don’t need to wait for approval, if you own a lien-free vehicle then you get easy approval for a loan. You need to meet a few requirements for approval-

A Lien-Free Vehicle:

you must have a vehicle in your name with its clear title.

Registration and Insurance Paper:

Before applying for a loan, you must be sure that you have a complete registration and insurance paper of your vehicle.

Driving License:

Owner should carry a government-issued driver’s license.

Residency Proof:

The lender needs proof of residency where the borrower currently lives.

Spare Key:

The lender keeps a spare key of your vehicle at the time when you borrow cash from them.

How Car Title Loans Works?

Lenders don’t need to keep your vehicle as a security. The amount of loan you borrow depends on the value of your vehicle. Your car is your asset, and it shows that you can repay the loan. Lenders don’t ask for proof of income or other security. Title lenders always aim to approve your funding based on the market value of your vehicle.

The lender checks few documents of your vehicle before approval for a loan. When you get approval on loan, you need to sign some papers. And can take cash from them, and the transaction can be online or direct into your account after completion of the verification process.

Borrowers Need To Follow Few Steps To Apply For a Loan

  • Online Application: You don’t have to run here and there for loan approval as this can be done by simply filling an online application form.
  • Submit Documents: You need to upload some documents which required for a loan.
  • Verification Process: Lenders check all documents and approve for a title loan
  • Sign Your Loan And Receive Your Cash: After getting approval on credit, you can get cash within an hour.

title loan - infograph

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About Geet Sharma

My Name is Geet Sharma Financial Blogger & Founder of Paisabank.org. We are a personal finance blog dedicated to finance & financial planners. The main aim of this blog is to help people to informed about financial decisions.
View all posts by Geet Sharma →

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