Thinking about applying for a car title loan? Not sure how it works? Let’s discuss the basics about car title loans now, and help you understand everything you need to know before you apply for a loan with Title Loans Fast.
A car title loan is a short-term loan that is similar in many ways to a payday loan. It’s intended to be a way for you to get access to emergency cash so that you can take care of an unexpected expense when you’re short on money.
Basically, a car title loan allows you to get a short-term loan using your vehicle as collateral. If you own your car (meaning you’re not making any payments on it) then you can use the value of your car to secure a short-term loan. You can usually get a loan for somewhere between 25-50% of the value of your vehicle.
Essentially, you’ll sign the title of your vehicle over to the lender. Then, when you repay your loan, you’ll get your title back – and regain ownership of the vehicle. That’s why car title loans are sometimes referred to as “pawning” – the basic process is quite similar.
While car title loans have relatively high-interest rates (APRs), they usually offer better terms than payday loans, making them a reasonable alternative to a payday loan.
Applying for a Car Title Loan
To apply for a car title loan at most car title lenders, you’ll need three things:
✅ A “free and clear” title. You must own your car outright, and not be making payments on the vehicle.
✅ Proof of residence, such as a bank statement or bill addressed to you.
✅ A vehicle inspection. Some lenders, like Title Loan Fast, will accept photos of the car in lieu of a physical vehicle inspection, which speeds up the lending process.
If you can provide these three things, you’ll usually pre-qualify for a loan at Title Loan Fast!
Repaying a Car Title Loan – and What Happens If You Don’t Pay
Your repayment terms will be given to you by your lender. It’s up to you to make sure that you can repay the full amount of the car title loan on the specified date, to ensure you get your vehicle’s title back.
If you fail to pay your title loan, the lender is allowed to repossess the vehicle. They own it because they own the title. You may have to pay additional fees after the car is repossessed, or it may be sold at auction to recoup the money that was not repaid.
How Do Car Title Loans Work? Got More Questions? Contact Us Today!
If you still have more questions about title loans, please feel free to contact Title Loan Fast. We’re experts in car title lending, and we can answer any questions you may have about applying, repaying your loan and more. Get started today – and get the cash you need, fast!