You may borrow anywhere from $500 and up depending on the cars value and your monthly income. Lenders will usually lend up to half the value of your car. Car title loans aren’t limited to cars. You can get a title loan against practically any SUV, truck motorcycle and even boats.
Car title loans, also known as pink slip loans are typically a short-term loan based on the value of your car. The loan is secured by using your free and clear title to your car.
To secure the loan, you must give the lender your car title and a spare set of keys to your car. A benefit of a title loan is that you still have use of your car. An auto pawn loan is a loan where you would leave the car with the lender. The lender needs to title and spare keys in case you default on the loan.
Depending on the lender, you can get a loan in under an hour. This is because the lender doesn’t need to do a credit check or pull a credit score for you. You are using your vehicle as collateral for the loan.
Use the Internet to shop for the best loan terms. You can find lenders online and fill out a loan application online. This is much more convenient to do rather than phone multiple lenders or running around filling out forms.
As stated earlier, the loan terms are usually for 30 days. At the end of 30 days, you may extend the loan as long as you pay the current interest. Many lenders will allow you to extend the loan several times as long as you make the interest payment on time.
Once you have paid off the loan, the lender will then return to you your spare keys and title. If you fail to pay, then the lender has to right to repossess your car. That is why they hold on to the title and spare keys.
If you are in the need for short-term cash and you own a car free and clear of any loans, then a car title loan may be for you. Remember; use the Internet to shop around for online car title loans.
