How to Get Car Title Loan with Ease

There are many important questions about car title loans, but the most important is probably something like: Is it a good idea to use my car title as a way to get cash I need quickly? The answer is generally, “Yes, depending on your specific situation.”

It’s important to understand that no method of getting a loan is perfect, whether you need the money for starting a business, paying school-related costs, or to get funds for another important purpose. With this in mind, you can look at a car title loan as a quick and easy way. In fact, many other loan options require a long waiting period, simply because it takes time for the lender to gather information and make a decision.

Online? In Person?

Here are some frequently asked questions for car title loans. This list may not include every question, stated in the exact way you’d phrase it, but you should be able to learn enough to make an informed decision.

1.       Why are there car title loans? Car title loans are meant as a way to reduce the time and stress it takes to get needed funds. The process is not nearly as complex as many other loan methods.

2.       What is a car title loan? It’s a loan using the title of your vehicle as collateral. You’re handing ownership of the car to the lender, temporarily. Once you pay the loan, you get the title back.

3.       Can I apply online? Yes. Today there are secure and easy ways to handle the loan process without leaving the comfort of your home. In some situations, you’ll have to take the title and any other paperwork to an office in person. But the application process and approval can be handled online

4.       Are there payment options? You should know the details before you agree to any loan. You should fully understand how the lender expects to be paid, how long the agreement will last, if you must send checks, and whether you can pay off the loan early without penalty.

5.       Is my car eligible for a car title loan? You may find some lenders will only accept titles for cars made from 2000 on and the car must be paid off at the time a new loan is applied for. You may be able to use a car older than this, but you should make sure you have all the facts before you begin. There may also be a mileage restriction, such as “under 100,000 miles.”

6.       Are there states where car title loans are not available? While these loans are available in many locations, the regulations vary from one state to another.

There are a few other details you should be sure of before you sign on the bottom line. You should be able to keep driving your car, without restrictions, during the loan period. If you have questions about this, including how many miles you can drive while the loan is in operation, be sure to ask first. The key questions about car title loans are those you ask before handing over your title.