Are you unemployed at the present time? What happens if you have been collecting unemployment and it runs out and there are no jobs in sight? What do you do if your bills are past due and it seems as though there is no light at the end of the tunnel? Turning to relatives is not an option nor is going to a bank for a traditional loan. This may be the time when a car title loan is your only source for getting the cash you need.
This type of loan is geared towards the consumer who has trouble getting a loan from mainstream financial institutions like banks or credit unions. When banks turn you down and relatives are unapproachable, car title loans are a quick and simple resource that won’t require answering any embarrassing questions. Most likely you will be denied and the best part is that you will get the cash you need directly deposited in to your account for overnight funding.
A car title loan is quick and easy. You just need to own your vehicle outright. This means that the title needs to be free and clear of any liens. Applying is simple when you have the option to conveniently fill a simple application, online or in the store location; it doesn’t take long.
You also need to have a governmental form of ID, proof of residency, proof of car insurance and a clean title. There will be no embarrassing credit check or any other questions of why you want the loan after approval and appraisal. Your instant cash will be in your hands within 24 hours, via check or direct deposit.
Of course, your vehicle has to be inspected and appraised. The lender will usually use the Kelley Blue Book price of resale value for your vehicle and if the vehicle passes the inspection, the lender will fund you 30% to 50% of the value of the vehicle. This latter percentage is a cushion for the lender in case you default on the loan. At the signing of the loan you will need to relinquish a copy of the vehicle title as well as a copy of your car keys.
The duration of the loan is usually for 30 days. After the 30 day period, the loan is due in full including fees and interests. If you are unable to repay the loan on time, the lender will give you options such as rolling over the loan. Rolling over the loan will entail more interest. Be aware that if you rollover and become unable to make your payment, your vehicle will be in danger of being reprocessed.
One added benefit for the borrower is still they are able to drive the vehicle for the duration of the loan. The borrower can still run errands and get to work as usual. There is no relinquishment of a vehicle. It’s a plus plus all around. A car title loan is not as scary as it sounds if taken out with a licensed and responsible lender.