Useful Facts About Car Title Loans
February 10, 2012
You may have seen television ads about title loans, car title loans, pink slip loan or u-drive loans. Each of these is a name for a common item – a loan against your vehicle.
Now, you may wonder what a title loan is. Let’s take a look at some useful facts about title loans.
Title loans range from hundreds to tens of thousands of dollars. The loan amount is based on the value of your vehicle. Lenders typically offer a percentage of the vehicle’s value.
It is important to note that title lenders will often offer loans at lower values than traditional lenders offer. This can be especially useful if you only need a few hundred dollars to pay off a bill, as most traditional lenders will require you to take out more money.
Of course, most people want to know what they’ll have to pay for a title loan.
Title loans typically have higher interest rates than traditional loans. The average interest rate for a 30-day title loan is 25 percent, but that is not a universal amount. For example, Car Cash Loans offers rates that are under half of that amount.
You probably think of getting a loan as an elaborate process. It typically takes days or weeks to apply for a loan and finally get the cash when dealing with a traditional lender.
However, the process of obtaining a title loan is much more streamlined than the typical loan process. The loan is often given out on the same day without as much paperwork involved. In fact, Car Cash Loans will often have you in and out in around 1 hour. In other words, you won’t spend half of your day in a loan office and wait weeks for a check to arrive – you could probably get the entire process done during your lunch break.
If this all sounds good so far, you may wonder which types of vehicles qualify for a title loan. Do you have to own a car?
You don’t have to own a car, per se. Vans, trucks, ATVs, planes and just about all other motorized vehicles can be used to obtain a title loan. So, whether you drive a car during rush-hour commute or fly a helicopter to beat the traffic, you’ll generally qualify for a title loan if you own your vehicle. On a side note – if you fly a helicopter around town, you may want to make sure that doing so is legal!
Unlike most traditional lenders, most title lenders do not require a credit check. Car Cash Loans does not generally require a credit check, so your credit history won’t be of any concern.
Not having to go through a credit check can be a great benefit if you have credit problems. Traditional lenders will frown upon your credit problems. They won’t offer you their best interest rates and may decline to work with you at all. However, a title lender will generally work with you – even if you have poor credit.
Similarly, if you have no credit at all, a title lender will generally work with you. Good luck with the bank if you have no credit history!
When you apply for just about any type of loan, you will be required to submit proof of income. However, with a title lender, the process is generally much more customer-friendly than with a traditional lender. You’ll generally be able to get a loan with only a minimal income verification process.
So, we’ve explored some useful facts about title loans. You should now understand such loans better and be prepared to make an informed decision. If you need a loan quickly and don’t want to deal with the hassle of a traditional lender, Car Cash Loans can help you get cash quickly!