All you need to know about title loans
Kevin had a medical emergency and needed money immediately for treatment. Without enough time on his hands to go through lengthy loan procedures, he decided to take his friend’s advice and opt for a title loan. Kevin gave the lending agency all the paperwork they needed and a day later he had the cash to pay his medical bills.Many people like Kevin need quick cash during emergencies. One hassle-free way to get it is to use title loans. Here’s everything you need to know about this kind of loan before you decide to apply for one.What are title loans?Loans that are given using your automobile as collateral are known as title loans or car title loans. The name comes from the fact that the title of the vehicle is transferred to the lender during the loan period. During the loan period, you can usually continue using your vehicle and the title returns to you after you pay off the loan.What are the different kinds of title loans available?There are two main types of loans involving vehicles as collateral: Title Loans: When you transfer the title of your existing vehicle in exchange for money it is termed as a title loan.Secured Car Loans: When you are given loans to buy an automobile and use that vehicle itself as collateral, it is a secured car loan. What do you need to get a title loan?The most important requirement for a title loan is an automobile with a clear title. Your car should also not have any outstanding debt on it since debt reduces the loan amount you are eligible for. Another documentary requirement is the means to pay back the loan. Usually, a few recent pay stubs are enough.How does the loan process work?Getting a title loan is quick and easy. Just walk into the lender’s office with your vehicle’s title papers and an extra set of keys and walk out with your loan. Nowadays, most lenders also allow you to fill out an application form online.