What to Consider When Applying for an Auto Title Loan

Financial troubles can come upon us quite unexpectedly some time. Often, we need to find a quick solution to repay some debts urgently. Getting a car title loan may be the right answer in such times. If you are not familiar with this type of loans, below you will find all the important details that you need.

Who qualifies for an auto title loan

Basically, anyone who has the title of the vehicle on their name can get an auto title loan. The process is not complicated and is quite quick. You can put an end to your financial troubles in about 30 minutes. There are just a few requirements that you need to meet:

  • To be 18 years of age
  • To be resident of the state in which the auto title loan company operates
  • To have a valid ID
  • To have an auto title on your name, which is free of other liens against it

Some companies may require a paid utility bill as a proof of your residence. You will also have to present some other documents related to the vehicle such as the car registration or insurance. The good news is that you can use different vehicles as a collateral – RV, motorcycle, truck, trailer and even a boat.

The biggest benefit of auto title loans is that the person who needs the money is not subjected to a credit history check or even if one is run on them it is simply for information. In other words, you can get the loan even if you have bad credit. The auto is the only collateral that you need and what is best is that you don’t surrender it to the lending company but you keep it to drive it. Thus, your normal routine is not affected.

 

How to apply for an auto title loan

If you meet the above-given requirements, it means that you can apply for an auto title loan. The process is quite simple and won’t take you too long. Once you have chosen the company that you want to proceed with, you simply need to visit their website and complete the online application form. Once you submit it, it takes usually less than an hour to get back the approval or other response. It is absolutely hassle-free and you can do it from any location with internet connection.

For those who are not comfortable submitting the information online or simply have no access to a computer, some companies offer personal service. There are counters located in bigger shops, which you can visit and get the same level of high service and expediency.

 

Good and bad reasons to take an auto title loan

Despite that the auto title loan can be a good solution to your financial problems, you need to consider well if you actually need to take a loan at all before proceeding any further. There are good and bad reasons to take an auto title loan and here are a few examples of each category:

  • Good reasons to take an auto title loan

As the auto title loan is one of the quickest options to get necessary money, it is very suitable to use it in emergencies. That can be unexpected medical bills, funeral expenses or overdue utility or rent payments. Auto title loans can also help in case of prolonged mortgage payments or to cover car repairs, so that your daily routine can continue uninterrupted.

  • Bad reasons to take an auto title loan

Getting an auto title loan is a serious decision so do not go for it if you are going to use the money on items that you actually don’t need. If you want to buy the latest smartphone model but you are short of cash, the auto title loan is not the right solution. The same goes for any other luxury item that you don’t need urgently. You’d better start putting some money aside and buy that gadget when you can truly afford it. The same applies for going to an expensive vacation or buying a big present to someone. In some cases less is more, so don’t risk your car for getting something that you don’t really need.

These are the basics that can guide you when you decide whether to apply for an auto title loan. Keep in mind that it is a quick and efficient solution to your unexpected financial trouble as long as you are disciplined and repay it on time. Make sure to get familiar with all the requirements included in your contract and ask about anything that you find unclear.