If you have poor credit, you may not be able to get a credit card at a reasonable interest rate or a home equity loan when you need money.
When your options are limited, where can you turn for quick cash? When you are turned down by friends, family, and the bank, a title loan could be just what you need to get the money that you need.
You Still Own Your Car
Although the lender will put a lien on your vehicle until you pay back the loan, you are free to use your car as you see fit. This means that you can get cash to pay for school without losing your mode of transportation to get to class. If your name is not the only name on the title, you may need to get permission from the other person on the title before you can apply for the loan.
The same may be true if you have a cosigner on the loan with you.
Get as Much as 70 Percent of the Car’s Value
If you have a car that is worth $10,000, you could get a loan for up to $7,000 if you opt for a car title loan. If your car is worth $100,000, you could get up to $70,000 in as little as 24 hours. All you need is sufficient equity in the vehicle to get the loan.
After you apply for the loan, an appraiser will come to you to determine how much the car is worth. If you agree with the valuation of the car, you can accept the loan offer on the spot. If you don’t like the loan offer, you can go to another lender or try to negotiate with your current lender to get more for your car.
Use the Same Car for Multiple Loans
As soon as your current loan is paid off, you can use your car as collateral to secure another title loan. If you have a valuable car, you could use your car to finance a home purchase, invest in the stock market, or pay down some high-interest debts. The interest rate for a title loan tends to be lower than what you would pay on a credit card or another unsecured loan.
For those who don’t own a home, a car title loan could be just as beneficial to you as a home equity loan is to a homeowner.
A title loan is a fast and easy way to get money whenever you need it.
As long as you own your car and have sufficient equity in it, you can get hundreds or thousands of dollars without a credit check.