Remember the wonderful feeling you had when you made the final payment on your vehicle and received the title in the mail? Paying off your vehicle is a huge accomplishment and requires patience and diligence. So, what has your paid in full vehicle done for you lately?
Did you know that you could take out a loan using the title of your vehicle as collateral? This is sometimes called a car or auto title loan and it is becoming more and more popular in todays society.
In order to qualify for a title loan you must prove to the lender that you have an income of some kind, and that you do, in fact, own your vehicle outright. Proving your employment is important to the lender only for the repayment process – your type or amount of income will not affect the amount of loan you can receive.
The value of your vehicle is what determines how much of a loan you will be eligible for. If you are unsure of your vehicles value you can look up the Kelly Blue Book value online for free.
Once you have filled out the online application and qualified for the title loan the lender will provide you with the loan documents that you must sign. These documents will not only go over the amount of your loan, but any interest rates or penalties associated with failing to pay it back. In most cases title loans are set up in such a way that they are paid back on or around your next payday.
If the loan you receive is particularly large, the repayment schedule may involve several paydays. After the loan documents have been signed the lender will most likely set up a time to send someone out to meet with you, take photos of your vehicle, and collect the title from you.
You will still be able to have ownership and drive your vehicle during the time in which you have the title loan. Meeting with the representative will give you an opportunity to ask any questions you may have about the process.
Once the title has been collected from you the lender will begin processing your loan so that you can receive the direct deposit as soon as possible. From start to finish the process can take as few as 48 hours or as long as a week. It all depends on how quickly you can sign the loan documents and set up a meeting time with the representative who will collect your title.
Auto title loans are extremely beneficial. They may sound a lot like a payday loan or cash advance, but they are different. Since a title loan is given against collateral (your vehicle), the interest rates are much lower than that of a typical payday loan or cash advance, while the amount of the loan can be much higher. Fill out our online application or call our toll free number to find out more today!