Car Title Loans, get cash in under 1 hour

Posted by Jude Jackson

February 8, 2010

A car title loan is a loan where you, as the owner of your car, use the equity in your car to get a loan. This can be similar to a home equity loan. By using your vehicle as collateral for a loan, you can typically receive a loan in less than 1 hour.

Before we continue, these types of loans are also known by other names. They are also called pink slip loans, title loans, auto title loans and car collateral loans. They are called title loans because the borrower should have clear title (meaning there are no loans against it). Now let's examine how to get a loan.

People with bad credit or no credit generally use these loans. In fact, even if you have a closed bankruptcy, you still may qualify for a car title loan. This is because a lender usually doesn't check your credit record or credit score. All the lender is concerned about is if you have a steady income and equity in the car.

Despite the name, car title loans are not just for cars. If you have equity in a boat, motorcycle, pickup truck or SUV, you are eligible for a title loan. A car title loan lender can accept all of those vehicles for a loan.

If your in need of a quick short-term loan, then car title loans may be the way to go. A loan can range from a quick 2 week loan to a loan term of up to 2 years. When shopping for a loan, ask the lender about the length of their loan policy.

There are several variations of car title loans. As stated before, they can range from 14 to 30 days in which you just pay interest. This is called an interest only loan. You just pay interest on it and when the loan is due, you also pay off the principal balance.

One very important thing to check with your loan is if there are any prepayment penalties. Many states forbid lenders from charging a prepayment penalty if you choose to pay the loan back early. This helpful for the borrower. If you are able to pay back the loan before it is due, this will help you save money on the interest charges.

The lender will determine the maximum amount they will loan you based on the value of your car and your monthly income. Lenders will usually loan up to half the value of your car. If you shop around a bit, you may find lenders who loan up to 65% of the cars value. The lender will assess your value by checking the cars year, make, model mileage and overall condition of your car. So obviously the better your car looks and runs, the higher the value should be.

Paperwork for a car title loan is minimal. You will have to start out by showing a monthly income. This can be done by showing your 2 latest pay stubs. You will also need to show the car title loan lender a valid drivers license and a paid for car insurance policy. Next you have to show proof of where you live. This can be done by simply showing the lender an electric or cable tv bill with your name and address on it. If you are unemployed or out on disability, you may still get a loan. If you can prove to the lender you have a regular monthly income, you can possibly get the loan. What counts as a regular monthly income? A government check would. If your are receiving a disability or a social security check on a regular basis, this can probably be good enough to get the loan.

There you have a good background on what a car title loan is and how to get one. Your next step now is to go find one.

As you have found out, getting a car title loan is very easy. Find out more about auto title loans

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