Eligibility Criteria for Car Title Loans
If there is an emergency in the family and you are strapped for cash, one way to get funds quickly is to get a car title loan. Why so? Well, you can make use of this loan without having to use your credit card and therefore block the available credit which you might otherwise need for other expenses. In addition, using car title loans means you do not have to go through the complicated loan process in a bank. Title loans are easily available if you have fully or almost paid for your car and you have a clear title.
Who is eligible for a car title loan?
Just about anybody can apply for car title loans as long as they own a vehicle. It does not matter if the applicant has bad credit history as the loan process is independent of the credit report. Also, the loan amount is determined by the existing value of the vehicle only.
Applying for a car title loan does not take too long. Just walk into a loan agency or fill out the form online and the loan will be processed in 24 to 48 hours. Generally, lenders loan up to 50% of the vehicle’s value, which takes care of any depreciation in the price of the car over the repayment period.
Things to keep in mind after availing a car title loan
Most lenders will not hesitate to give car title loans and the lender can still drive the car while paying the loan. The most important thing borrowers have to ensure is that payments are made on time so that the lender does not repossess the vehicle. As such, car title loans can be a real blessing in times of need and can help you and when accosted with a major financial crunch.