Emergencies are
unpredictable, and this means that you may have a financial crisis at any
moment without the means of settling it. If such an incident catches you off
guard, a car title loan may be what you need. In most cases, a car title loan
refers to a title pawn that you can easily apply for and gather a high chance
of receiving. This short-term loan, referred to as an "auto title
loan," uses the borrower's vehicle as security for the loan sum. Let's
find out some of the requirements for a car title loan.
The car needs to be
visually inspected for the lenders to decide whether you qualify for the loan
or not. The inspection usually takes less than an hour, and it is important to
remember that you must have a clear title to your vehicle to qualify for a
loan. If you are wondering, how much can I get for a title loan? The answer depends on several factors, including the
make and model of your car, its age and condition, and the current market
value. Lenders typically offer you 25% to 50% of your car's value as a loan.
Obtaining this loan
requires you to have some paperwork like the original title for your car
ownership, vehicle registration papers, phone number, and your identification
card. Depending on the lender you are getting the loan from, the paperwork they
ask for may differ as others may demand the car to get a GPS tracking device.
Your car will be collateral
for the loan, so the lender will want to ensure it's properly insured
in case of an accident. You'll need to provide a copy of your insurance
card or policy declaration page when you apply for the loan. In some cases, you
may also be required to add the lender to your policy as an additional insured
driver.
When you want a car
title loan, you must have proof of residing in the city where the loans are
viable. Although some lenders provide these loans to different people from
different cities, evidence of where you live can determine whether you will receive
the loan. This way, they know where they can find you in case of anything.
Applying for a car title
loan might be easy, but it is not viable for jobless individuals. Having
evidence of incoming money monthly is one of the modest requests most lenders
demand people to comply with. Candidates must have some source of income to be
considered, be it stable employment,
trust, annuity, or anything else generating their money. This is mandatory as
the lenders must ensure you will fulfill your end of the agreement.
Most lenders out there
are stringent about the people they give loans to, and most do this depending
on their credit scores.
Those with poor credit scores fail to get the loans, but this is not a
necessity with car title loans. With these loans, whether or not you get the
loan is solely based on the vehicle's resale value and whether you have the
capabilities to pay for the loan.
As long as you are above
eighteen years old and own a car, you are a step away from getting a car title
loan. These loans are reliable and can quickly get you out of a sticky money
situation. You can try your luck if you have all the above requirements.