When financial emergencies happen, your options may be limited. Moreover, you can’t always depend on your friends and family to assist; they won’t always have the resources to help you out. You can try borrowing from your bank or credit union, but the tedious process may take more time than necessary.
Fortunately, there is an alternative – car title loans.
Car titles loans (also known as title pledge or pink-slip loans) are short-term loans that use vehicles for collateral. If you own a car with a clear title, you qualify. These loans are often for an amount that is 25-50 percent of the vehicle’s value. On average, these loans range between $100 and $5,500, but in some cases, they can grow as big as a five-digit sum.
Not Your Traditional Loan
A bank loan application requires your credit history, employment history, and other personal information. Once they have all the requirements, the lender will then begin the process of examining the borrower’s credit-worthiness. Applicants will have to wait for weeks before they know if their loan has been approved.
Car title loans, on the other hand, are quicker and easier to process.
Potential borrowers just need to fill out an application form and start the process. Upon submitting the form, the title loan company will then ensure the title matches the vehicle and assess its value. Once they have the car’s approximate value, they can immediately approve a loan.
An Ideal Financial Solution
The entire process normally takes an hour. Lenders also do not require employment verifications or credit checks. Since your car serves as the collateral, there’s no need for the additional paperwork associated with conventional loans. Auto title loan lenders hold the title, and if the borrower fails to repay the loan, the former will become the vehicle’s owners.
The speed and convenience of car title loans make it the ideal Plan B for financial emergencies.
Another benefit of an auto title loan is that you can still drive your car. Once you make your final payment, you get the title back. So, you don’t have to worry about getting around when you take out this type of loan.
Car Title Loan Considerations
If you are planning to apply for a car title loan, consider the following:
- Your vehicle’s market value. Here at VIP Finance of Texas, we assess the value of your car to determine the ideal loan account. If you want to be sure of your car’s value, you can head to the Kelley Blue Book website.
- The fine print. Similar to other contracts, go through your loan approval with a fine-tooth comb and learn more about specifics: calculation of interest rates, penalizations of non-payments and late payments, etc.
With a car title loan, it’s easier to face financial emergencies. Using this loan to pay off sudden expenses gets rid of that burden so you can get back on your feet immediately.
Are you interested in taking out a loan? Let VIP Finance of Texas help you alleviate cash flow bottlenecks with our title loans for less. Get in touch with us or visit one of our locations today.