You can find plenty of ways to find fast cash when you need it, but not all of them are good ideas. However, in an emergency, you might not have a lot of time to pursue multiple options to get cash in hand right away.
Have you heard of a title loan? If you need some money that you can repay in a stipulated period of time, a title loan is a good option in an emergency cash situation.
Keep reading to learn more about title loan requirements for quick emergency cash.
What is a Title Loan?
A title loan uses your car, motorcycle, truck or any vehicle title as collateral for cash. It’s faster than selling your vehicle or other property to come up with some quick funds.
The lender takes your vehicle’s title like your car’s title which will serve as collateral in exchange and lends you some cash, mainly on the value of your vehicle. Most title loans have a 30-day repayment policy. However, the title loan requirements widely from state to state and lender to lender. This makes it important to be well-versed with the terms of a lender and then apply for the loan.
What’s the Benefit?
When your car carries some value, many lenders are open to offering a car title loan. There are plenty of benefits to you and your lender with this type of loan.
- You don’t need to go through a typical loan application process. A title loan doesn’t require the amount of paperwork or credit history needed for some types of personal loans. With your car as collateral, lenders have an instant guarantee of a property if you fail to repay the loan.
- You can receive quick approval. Most title loans happen quickly. Show your lender that you have proof of income and the car’s title, then you both agree on the terms of the loan. In many cases, you can walk away with the cash you need in a matter of minutes.
- You get to use your car. It’s hard to repay a loan if you can’t get to work! While the lender keeps your car title, you’re still free to use your car.
- You won’t deal with a high-interest rate. Other types of emergency cash can come with high-interest rates. You’ll repay a lot more money on a cash advance than you will for a car title loan with a lower interest rate.
Keep in mind: if you fail to repay the loan, the lender can repossess your car. Be sure you can repay the money you borrow within the agreed timeframe before you consider a title loan.
What Do I Need?
You don’t need much! In most cases, you can receive a title loan with a personal vehicle and proof of income. A car title loan is a hassle-free way to get some quick cash then pay off the loan.
The title loan lenders are more interested in knowing the value and condition of your vehicle than your credit score. Hence, your score won’t affect approval for a loan using your car’s title much.
Repayment is easy with a schedule from your lender. But again, if you cannot pay back the loan, the title loan lender may have full right to take possession of your vehicle and even sell it to recover the outstanding amount.
It’s Easy to Qualify for Title Loan Requirements!
Don’t let a rough financial month get you down or put you further into debt. With simple title loan requirements, you can quickly and easily qualify for the cash you need. If you found this article helpful, be sure you check out some of our other finance articles!