Many people do not know that you can actually get a loan using your vehicle as collateral. This type of loan is referred to as a car title loan and is offered to borrowers that are in need of extra cash fast. The cash from these loans can help you catch up on medical bills, needed home repairs, car repairs, mortgage bill, etc. But it is important to understand that the lender is going to provide a loan amount that is much less than the true value of your vehicle. This loan is generally only used for emergencies and has to be repaid in a short amount of time.
To get approved for this loan your lender will typically only require that the borrower provides proof of an active checking account, currently employed, and a clear title to the car being used as collateral. You will find that there are some lending companies that will require a full inspection of the car before the loan can be approved. If the borrower passes all needed requirements the lender will then approve the car title loan and the borrower will then sign the contract explaining all terms and conditions that will apply to this transaction. The agreed cash amount for the loan will be provided almost immediately after all paperwork is signed.
The amount an individual is allowed to borrower through a car title loan is typically much less than the value of the vehicle. Also in addition to this loan having to be repaid in a short length of time, the loan is going to have a high interest rate as well. Be sure to make all payments as agreed upon. In the event that a borrower fails to make a payment, or is late on a payment, the lender can actually seize the vehicle immediately from the owner. Many lending companies only provide this type of loan as emergency assistance for the borrower.
My name is Maurice “Moe” Bedard. I am the founder of America’s #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.