Your car is a very versatile asset that can provide you with more than just a convenient means of transportation. For example, if you own the car solely and require an auto title loan, then you can use the vehicle as collateral. This type of loan provides you with access to instant cash, and as long as payments are made as at when due, you can repeat the process when necessary. In short, your vehicle can be the much-needed financial cushion to help you sort out emergency situations as the case may be.
Although the terms of agreement and interest rates of auto title loans differ from lender to lender, they have many common characteristics. In most cases, you can borrow $1,000 or more depending on your car’s value for a period of a month by surrendering your vehicle’s title and a spare set of keys to the lender. You are to retain possession of the vehicle and continue driving it during the loan period. You must make payments on due dates agreed upon to prevent lag in payment. Failure to pay back may result in the repossession of your vehicle by the lender.
The process for applying for online auto title loans depends on the lender you decide on but generally involves these steps.
- Finding a reputable loan company. This is the most time-consuming step of the process-and the most important, so don’t even think about running from it. Using your favourite search engine, decide on a list of potential lenders you would want to try and research further. Then research more to be sure the company is legitimate, fair, and reputable, and that customers handled in the past have been satisfied with their services.
- Comparing loan terms and rates. Not all online auto title loans come with the same terms or interest rates, so it pays to compare. Make sure to check the lender’s policy about early repayment as well. Making payments on your loan early could save you a lot of money in interest fees.
- Reviewing the minimum requirements. Are there any liens against your automobile or is the car less than 10 years old and does it have a wholesale blue book value of at least $2,500? Are you 18 years old and above, employed, and able to provide verifying documents? These are mostly the absolute minimum requirements that could be needed for title loans.
- Submitting an application. It can be done electronically and/or via fax. Once your application has been reviewed, the lender will decide whether or not to proceed with the secondary application process. The secondary application process for auto title loans typically involves sending in copies of personal information like your driver’s license, Social Security card, most recent paystub, proof of insurance, and any other document(s) the lender may require.
- Receiving your money. Once approved finally, which is within a few hours to a day, the loan amount will be transferred electronically to your bank account. You can immediately access the money at your nearest branch or ATM.
This easy application process makes online auto title loans a convenient way to get fast cash whenever you have an emergency. They are particularly useful if you have bad credit or no credit. When you need emergency money, give this type of loan a try.