Car Title Loans

A car title loan is a simple and quick way to borrow the money you need in as little as one day. Here’s why you should consider car title loans.

Due to the recent economic down turn, banks have tighten their lending severely. Customers who had no problem borrowing money as recently as 1 year ago, are having problems with their banks extending them credit.

Credit card companies have also pulled back form lending. Some credit card companies have suddenly lowered the amount of credit they will give you. Some companies have done this with no warning. What can some one do that needs to borrow money?

First what are car title loans? A car title loan (also known as a pink slip loan or auto title loan) is a loan in which you use your car as collateral for the loan. By doing this, most lenders won’t check your credit score or even do a credit check on you. This is because you have given your car as security for the loan. Even though you have used your car as collateral for the loan, you still have possession of it and are free to drive and use it. This is much better than using a pawnshop where you would give up possession of the car. By pledging the car, all the lender has to do is check the value of you car check your pay stub and you can usually get your cash the same day. In some cases you get your money in under an hour

Lenders have made it very easy to apply for a loan. Some will allow you to fill out an online application. They will ask a few basic questions and then click send. This certainly speeds up the time to review your loan application.

Even if you have bad credit or no credit, you can still get a car title loan. If your car is free and clear of debt (and in some cases even if you still have a loan on your car) and you have a monthly source of income, you can qualify for a title loan.

First you must have clear title to your car (or SUV, truck or even motorcycle). Then you need to show a valid drivers license and a proof of auto insurance card. Next you need a pay stub and a social security card. The last thing you will need is proof of residency. This can be in the form of a bill from your electric company, water company, etc

Since you are using your car as collateral, you should have that car looking great for the lender. Remember the loan is based on the value of the car. Lenders typically loan up to half the value of the car. So here it pays to make sure the car looks good and is running in top condition. Clean the car out. Bring to the car wash so it looks its best when the lender goes to appraise it.

Car title loans are generally short-term loans. This means they can be for a short as 14 days or can go for a few months. Most of the time the loans are used for 30-60 days.

It is very important that you have a plan and the means to pay the loan back. Failure to do so will result in you losing your car. Remember too, if you don’t need the money for the full 30 days, by all means back it off. You will save money on the interest charge, plus it can possibly help your credit.

Car title loans can help you for short-term cash needs when banks won’t lend you money. Even if you have bad credit, odds are you will be able to get a car title loan.