If you have suddenly found yourself in a tough spot financially, and you are in need of some quick cash, you may want to consider obtaining a car title loan. However, if you have never used auto title loans before, you will want to continue reading to learn more about them. The more you know, the easier it will be for you to obtain the title loan and repay it. Here are some of the things that you will want to keep in mind:
You Need The Clear Title To Your Vehicle
You will need to bring the title to your vehicle to the loan company. There must not be any liens against the title, or else the title loan company will not be able to work with you. If your vehicle is free and clear of all liens, then they will keep the title and place a lien against it if you do end up working out a loan agreement with them. They will release their lien and give you back the title once you have paid your loan and fees back in full.
You Won't Need A Credit Check But You Need Proof Of Income
Unlike traditional lenders, you will not be subjected to a credit check. Therefore, if you have bad credit, for whatever reason, that will not be held against you. However, the lender will most likely want proof of income. This could be an award letter from the Social Security Administration or pay stubs from your employer. If you are self-employed, your most recent bank statements showing the deposits you make every month might be acceptable.
You Can Risk Losing Your Vehicle
It is very important to know that you do risk losing your vehicle if you are unable to pay back the loan as originally agreed upon. If you end up in default, the lender can repossess your vehicle. In some cases, they might be able to give you a small extension, but you do not want to count on that because their ability to change payment arrangements will be dictated by their corporate office. You want to make sure that you are going to be able to pay the money back so try not to borrow more than absolutely needed.
Now that you have had a little time to review the previously mentioned points, you should feel much more prepared to apply for a car title loan. What you should do now is take a few moments to find out the names of the various title loan lenders in your area and then conduct some research so you can learn a little about their reputation. This way, you will have an easier time deciding which car title loan company you want to work with.