Title loans are secured loans that require assets to act as collaterals for loans. The application process is easy, fast, and does not consider an applicant’s credit rating. Car title loans are the most common type of title loans. Titles loans are attractive to people experiencing financial hardships and need instant cash. Also, people without a credit score or with a poor credit history consider title loans.
Here are the guidelines for applying for a title loan near you.
Meet the Application Requirements
Almost anyone can qualify for a title loan as long as you meet several requirements. First, you must be at least 18 years of age. You must provide a government-issued ID to prove your name and age. Second, you must own a car and have its title. The title must be in your name to verify ownership. Third, you must have a source of regular income. You can be employed, self-employed, or receive pensions and benefits such as unemployment benefits.
Determine the size of the loan
The amount of money you need determines the size of the title loan. Also, your vehicle’s value and ability to repay are considered when offering you a loan. You cannot be given an amount larger than a certain percentage of your car’s value or that exceeds your income.
If you meet the stipulated requirements, you can go ahead and apply for a title loan. Look for a credible title loan company that has favorable conditions and meets your financial needs. You can search online for companies that offer title loans near you and compare their terms and conditions. If you live in California, you can check out where to get loans at title loans in California. A majority of title loan companies allow online applications although they require you to present your car for inspection.
If you qualify for a title loan and apply, you will be given a repayment agreement. A repayment agreement stipulates the amount repayable, duration of the loan, and means of repaying it. In the agreement, you sign your title allowing the title company to add their name to the title as lien holder until you repay your loan. The title company holds on to your car title until the loan repayment period is over while you keep the car. A repayment agreement affirms what happens if you do not repay the loan as agreed. In many instances, the title loan company repossesses your car. Alternatively, the company can let you pay the interest only each month and roll over the loan amount indefinitely until it’s fully paid.
A title loan is a good alternative for a bank loan especially when you need money urgently. Applying for a title loan is simple and fast and can take as little as 20 minutes. Also, the requirements are easy and include your ID, car title, and proof of income. The size of the loan you receive depends on the value of your car, your ability to repay, and your financial need.