There are many situations in which you might need cash fast and standard loan options are out of the question. If you don't have a credit card and you need an immediate cash influx, then a car title loan might work for you. However, there are a few things about car title loans that you should know about before you run out and get one, like if your car is eligible.
You Must Have a Free and Clear Vehicle Title
If you think that a car title loan might be right for you, you need to ensure that your car title is free from any liens and that the car is paid off in full. Liens are documents that mean certain entities have the right to repossess your vehicle, usually held by the bank. You can check if your car title has any liens on your state's local DMV website.
Even if you have no liens on your car, there might still be liens present from the previous owner for failing to pay off the car completely. This can also be checked on the DMV website for the state which the vehicle was purchased from. If you have no liens and your car is paid off in full, you are good to go!
You Risk Your Car Being Repossessed If You Don't Adhere To The Borrowing Terms
One of the reason that car title loans are available to people with credit scores of all kind is due to the fact that the car's title serves as collateral for the title loan company. If you fail to payback your loan as outlined in the terms of the loan, your car can be repossessed by the title loan company. Don't worry, though, only 6 to 8 percent of cars ever get repossessed due to improper payment. On top of that, you can work with the car title loan company to extend your loan, giving you a longer time to payback the loan, in order to avoid having your car repossessed. Just remember to read the loan agreement in order to avoid repossession!
You Must Be Gainfully Employed
Just like you need to prove that you are employed to get a payday loan or a bank loan, you also need to prove that you are employed to get a car title loan. The car title loan location wants to ensure that you will be able to pay back the loan, and the best way to do that is by verifying employment. You may be asked to show tax returns, W-2s, or pay stubs. The car title loan location wants you to be able to pay back the loan just as much as you want to pay back the loan, so be ready with employment verification!
Your Bad Credit Won't Prevent You From Getting a Loan
Unlike trying to get a loan from a bank or a credit card, your credit score doesn't matter when it comes to getting a title loan. As long as the conditions mentioned above are met, you will be able to walk out the door with a loan! Even if you have current open debts it won't prevent you from getting a car title loan.
If you do use a car title loan, do your best to repay it on time in order to avoid the negative consequences of late payment. Quick cash can be hard to come by, but a car title loan makes getting cash almost instantly easy. Next time you are strapped for cash, give a car title loan a try!
Visit sites like http://driveittitleloan.com to get started.