If you need a little extra cash, then perhaps you’ve considered getting a car title loan.
In spite of what the name implies, this loan can be used to pay for medical bills, to cover a car repair expense, or even to give you extra cash to hold you over in between jobs.
In short, you don’t just have to use your car title to cover expenses related to your vehicle.
But how do you get a car title loan?
Read on for a guide on how to make the process as easy as possible.
Applying for a Car Title Loan
Like other cash loans, when you’re applying for a car title loan, you’ll need to provide collateral.
You’ll have to hand over the title to your car or other vehicle, and they’ll give you a loan. Be aware that in most cases, you’ll have only 30 days to repay the loan. If you are unable to pay the loan, the lender will be able to take your car from you.
However, you’ll still be able to drive your car over the life of the loan. The lender will only take it if you can’t repay your loan in time.
Remember that, in addition to the initial loan repayment amount, you’ll also have to pay a fee and interest.
To ensure that you’re getting the best possible deal, check out the APR, or the Annual Percentage Rate, on the car loan you’re considering.
The APR is usually calculated based on the length that you’ll need to borrow the money, the fees associated with the loan, how much money you need to borrow, and the interest rate.
Now, let’s talk about the kind of documentation that you’ll likely need to provide when looking for car title loans in your area or even loans online.
You’ll need to complete the lender-specific application, which sometimes requires you to provide certain financial documents.
These can include pay stubs, bank statements, and more. You’ll also need to show your driver’s license, a government-issued ID, and documents proving your residency.
In some cases, you may need to show a proof of income. If you’re currently unemployed, however, you can show past tax records, bank statements, and more.
Of course, you’ll also need to show the lender the car title in your name.
Above all, in order to avoid losing your car, make sure that you’re working with an experienced and reputable lender of car title loans, like Car Cash Loans.
Is a Car Title Loan Right for You?
We hope that this post has helped you to determine whether or not a car loan is your best option.
We also hope that you now feel more comfortable with the application process as a whole.
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No matter what kind of auto advice you’re looking for, we can help you to find it. We can even connect you with a live mechanic when you need immediate answers to your questions.