Have you ever been faced with unexpected expenses that you need to cover urgently or otherwise you might have some serious trouble? For most of us, the answer to this question is “Yes”. In such cases, we are trying to find cash that we can use to cover our debt. There are several options to choose from – borrow from friends or relatives or apply for a bank loan are two very popular practices. The first option, however, is not guaranteed and the second takes time and there is a great chance that you might not be approved.

Hence, in the past years another solution is offered – to get a car title Loan. It is fast, simple and suitable even for people with bad credit history.

If you have never used the services of a car title loan company, here is all you need to know about it.

What is a car title loan?

A car title loan is a loan that you receive using your car title as a collateral. It is usually for a smaller amount of money and a shorter period of time – up to 36 months in the most cases. The amount you can get depends on your car – its brand, age, current resale value, overall condition. Each state regulates the minimum amount and for California, for example, it is set to be $2,600. Each car title loan provider sets the ceiling but it can go as high up as $50,000. The car title loans are very useful when you need money urgently and are usually used to cover unexpected medical bills, car repairs or overdue mortgage installments or rent payments.

How to apply for a car title loan?

The procedure for applying for a car title loan is pretty simple and straightforward. Once you choose the provider you can apply online through their website. There are also companies that have offices in various locations throughout the state, which you can visit in person. The approval process is very fast – you receive your money within the same day and in most cases even after just half an hour. This is due to the fact that no credit score check is run on the applicant. In other words, you are eligible for a car title loan even if you have a bad credit history.

All you need to apply is a vehicle title on your name that is free of other liens. You can use not only your car but also a truck, trailer, RV, motorcycle and even a boat. In addition to the vehicle documents such as registration and insurance, you need to provide some personal documentation as well. You need to be at least 18 years of age and be resident of the state in which the car title loan company operates. You need a valid ID and a driver’s license, as well as proof of your current address – a paid utility bill will do. Some other financial information about your employment may also be necessary. The aim is to prove that you can afford to repay the loan.

How to select the best car title loan provider?

As there are many companies offering car title loans, it is important to select the right one for you. Take some time to do a research in order to make an informed decision. You can select a few companies based on clients testimonials or recommendations and reach out to them to see the conditions they offer. Note that the interest rate is not the only factor to base your choice on.

Read carefully the terms and conditions and ask questions if something is unclear. Check whether you can keep and drive your car for the term of the contract and under which circumstances it will be repossessed. See if you are allowed to repay the loan earlier and if a pre-payment penalty applies or not. It is better to opt for such a lender that allows earlier repayment without any additional fees imposed. Make sure that you can reach a company representative via phone or e-mail in case you have some enquires. Once you find the right car title loan provider the rest of the process is pretty simple and fast as described above.

Car title loans are a very good solution for anyone who is faced with financial troubles and needs an urgent solution. Working with a reliable lender is a guarantee that you will solve your issues without much hassle and efforts, so take some time to research the best offer on the market.

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