How Title Loans Work If You've Never Borrowed Before
If you’re looking at Auto Cash USA, you might be wondering how title loans work, and whether you might be eligible for one of these loans. Title loans offer help to people who need to get cash quickly for an unexpected financial outlay, and you can apply for one using your vehicle as collateral.
However, before you can take out a loan, you need to know how title loans work, so you can determine whether these are suitable for your circumstances. It’s important to know the facts before applying!
How Title Loans Work
A title loan can be used even if you don’t have any history of borrowing because it works by using your lien-free vehicle title as collateral. A lot of vehicles have a decent amount of inherent value, even ones that are fairly old, but it can be hard to make use of that value if you don’t know how.
If you’ve had a financial emergency, you might consider selling your car – but for many people, that means you can’t get to and from work, pick up groceries, drive kids to school, attend medical appointments, etc. Your car’s value is therefore locked up in the vehicle, which can be frustrating.
A title loan uses your lien-free title as collateral for the loan. It serves as an assurance that you will repay the loan. That assurance can be important, especially if you have either poor credit or no real credit history.
The great news is that you don’t have to give up your car while the loan is in place, provided you meet the repayment schedule. You can still drive it, however, you need to, allowing you to keep your normal schedule and day-to-day activities.
You will then make payments according to the schedule that you set up with the loan company when you take the loan out. You can discuss what would work for you with an agent before you sign anything. Once the loan has been paid off, the lien that was placed on your vehicle title for the loan is removed.
Note that although you don’t have to have a job to take out a title loan, you will need to be able to demonstrate that you can repay the loan through some source of income.
Hopefully, you now understand how title loans work! They provide a solution in a situation where you need cash but you can’t sell your car. Given how many people depend on their vehicles every day, they are a flexible option for people in a variety of circumstances.
Do Title Loans Get Processed Quickly?
Now that you know how title loans work, you might be wondering how long the loan process usually takes. Often, if you’re looking at this kind of loan, you need money in a hurry – whether that’s for emergency travel, a medical issue, a sudden house repair, or something else. That means you probably want to know how soon you’ll have the money.
If you decide to use Auto Cash USA to connect with a reputable lender in your area, then the process won’t take very long. Getting a loan from one of our lenders requires you to have an agent inspect your car and your paperwork, and you can set this up by completing our online request form. The agent will meet you somewhere convenient for you and will go through this quickly. Often, it takes less than an hour to get all of this sorted.
If you are approved for a title loan, it only takes a couple of working days for the money to arrive in your account. In some cases, you can even get the money as fast as the same day depending on the time of day you apply. As you can see, it can be a much faster process than more traditional sources of loans, such as banks.
Can You Use Title Loans For Anything?
You should use title loans to deal with an emergency financial situation, and not for luxury spending or as capital for starting a business. They are intended to help when you are facing a large bill and you don’t have the means to pay it outright, but cannot wait for your next paycheck.
Don’t use a title loan to go on a vacation, buy another vehicle, or for other non-essential purchases. Use them to pay critical bills that can’t be postponed until you have the money.
Start Applying Now
Auto Cash USA can help connect people who are looking for a title loan with the companies that offer them, allowing you to find reliable and helpful lenders. Now that you know how title loans work, you hopefully have a good idea of whether one of these would work for you. If you’ve got a lien-free vehicle title you want to use as collateral, this could be a solution to your financial situation!
Reach out today via our website or the online chat, and an agent will help you through the rest of the process. It is a fast and straightforward option, so get in touch to find out more.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.