What is an Auto Title Loan and Why Should You Get One
What Is An Auto Title Loan?
Cars are valuable assets. Not only do they provide you with transportation when you need it, but they can also give you some financial cushioning. People who own a vehicle and are in need of cash can get the money that the need with an auto title loan.
Lending institutions issue auto title loans for a certain amount of money over a short period of time. A borrower (the person who owns the vehicle) can obtain this type of loan by giving the title of their vehicle, whether it’s a car, a truck or a motorcycle, to a lender. The title of the vehicle serves as collateral for the amount of money the lender is allowing the owner to borrow. Once the loan is issued, the borrower has a set period of time to repay the money to the lender; typically 30 days.
The Benefits of an Auto Title Loan
When you need cash fast, if you own a vehicle, an auto title loan could be the answer that you are looking for. By offering a lender the title to your vehicle as collateral, you could have the money that you need in your hands in as little as just a few hours!
Some instances when an auto title loan would be beneficial include:
- A hefty bill associated with a medical emergency
- Late payments on another financial obligation, such as a mortgage payment or a student loan
- Money for a trip that you have been longing to take
- Bail money for you or a loved one
- Building credit. If you have poor credit and you are looking for a fast way to improve it, an auto title loan could help. As soon as you repay the loan, you could see a significant rise in your credit score.
How Do You Get An Auto Title Loan?
If you are interested in an auto title loan, getting one is really very simple. The steps include:
- Acquiring and filling out an application for the loan
- Presenting the application to the lender
- Presenting proof of ownership of the vehicle to the lender (the title of the vehicle)
- Presenting a valid photo ID to the lender
Prior to offering a loan, a lender may ask to see photos of the vehicle or may want to physically inspect it. This will ensure that the lender has a firm understanding of the condition of the vehicle and will allow them to determine the amount of money they will offer for the loan.
Once the loan has been accepted, the lender will ask you to hand over the title of your vehicle, and perhaps a set of keys. You will be asked to accept the terms and conditions of the loan, which will include the amount of time you will have to pay the money back and any fees that may be associated with the loan. To confirm your understanding and acceptance of the terms and conditions, you will be asked to sign and date the necessary paperwork.
Once you have accepted the terms and conditions of the auto title loan, the lender will issue you a check for the amount of money they are allowing you to borrow; in most cases, a check is issued almost immediately. You will be required to pay the amount you borrowed, plus any fees, within the specified time period.
If you are interested in an auto title loan, contact us today! We offer exceptional rates and fast service. You’ll have the money that you need in no time!