For individuals whose finances have been bruised with excessive financial responsibilities such as unexpected medical bills and other expenses, the option of a car title loan is a good one. An online car title loan is a type of loan that is easy to secure as it does not require any form of credit checks as long as you own a car free and clear.
Today, you don’t have to visit a loan shop or spend several hours waiting in line to get a title loan. The entire process can be completed online without leaving your comfort. All you need to do is apply online and attach all the required documents online and a loan representative from the loan company will get in touch with you.
How Do Online Title Loans Work?
Car title loans are also called pink slip loans, auto title loans, or auto equity loans. The way it works is similar to the way other loan types work.
When you apply for a car title loan, your car is your collateral. This means that your car is your credit and you might not be subjected to credit checks. Once you apply for the loan and you are approved for the loan, you will get the funds credited to your account. It is a loan that you can get the same day without any delay.
When you get a car title loan, you don’t have to give up your car, what you leave with your lender is the title of your loan and as soon as you pay off the loan, the lender will release your title to you lien-free.
After this, you can start paying off the loan. You can still drive your car around while you are paying off the loan.
How Much Can I Get?
When you apply for a car title loan, the amount of money you can borrow depends on the equity in your car. the lender will evaluate the worth of your car and you can get as much as 50% of the equity in your car.
The lender will consider your source of income to know how much they can lend and to also know if you can repay the loan.
Can I Get More than One Online Title Loan?
Yes, you can get more than one online title loan if you own more than one car. you can get a separate loan for each automobile you own as long as the cars are in good condition.
What Can I Use a Car Title Loan for?
You can use your online title loan for whatever purpose you wish. It is your prerogative to decide what purpose the money will serve. Whether you need to pay for rent, school fees, fix your car, or go on vacation does not concern your lender. However, you must use the funds for what will benefit you in the long run and for purposes that will not make it difficult for you to be able to repay the money.
With a car title loan, you can improve your finances by not defaulting and keeping to the terms of your contract.