Need some cash but don't know where to get it from? If you own your vehicle, it is possible to use a title loan to get the money you need. Here are some questions you'll likely have about getting a title loan.
What Documentation Is Needed To Get A Title Loan?
You'll want to collect a few different documents before you head to the title loan company. The most important thing will be to have the title to your vehicle that is clear of any loans. Additionally, you will likely need to have proof of your income and residence, a photo ID, and your social security number.
Likewise, you will also need to give a spare key to the title loan company since they will need it if they ever have to repossess your vehicle for not paying back the loan. The key and the title for the vehicle will be the only things that you leave behind if you are approved for a title loan.
Does Your Vehicle Need To Have Collision Insurance?
One thing that is important to know about title loans is that you need to have the vehicle insured with collision insurance. This is because you are using the vehicle as collateral in order to get the loan. If the vehicle were to become damaged and the title loan company could not repossess your vehicle, there would be no incentive for you to pay back the loan. That is why title loan companies often require insurance so that you are able to repair or replace the vehicle if something were to happen to it.
Collision insurance is sometimes waived if the vehicle is worth less than a specified amount. However, the title loan company can let you know when they verify the value of your vehicle.
Will Your Vehicle Be Inspected?
The title loan company will perform a basic inspection of your vehicle to verify that everything is in good condition. They will also record the mileage from the vehicle during the inspection. The information about the vehicle's make and model, its condition, and total mileage are all used to calculate how much you will receive for a title loan. The value they estimate is used to determine the value of the title loan.
With your cash in hand, you'll have a deadline for how long you will have to repay the title loan or extend it for additional time. Contact a title loan provider for more information.