Every year, more than 2 million people take out title loans.
Are you thinking about using this approach to get your hands on some extra cash? Before you do, be sure you consult our title loan guide.
Outlined below is everything you need to know about title loans.
What Is a Title Loan?
A title loan is a short-term loan for a relatively small amount of money (often a few hundred dollars or less).
In exchange for a title loan, a borrower will give the lender the title to their vehicle as collateral. They also pay a fee in exchange for borrowing the money.
The borrower must repay the loan within an agreed-upon period, typically within 30 days. Otherwise, they’ll forfeit their vehicle.
Title Loan Benefits
Title loans have some drawbacks, including their short loan terms and the fact that the borrower runs the risk of losing their vehicle. There are also some important benefits, though, including the following:
- Instant cash to help you through an emergency or cover you until your next payday
- Short processing times (often less than 1 hour)
- No credit score or cosigner is required
You can continue driving your car throughout the repayment process, too. As long as the lender has your title, you’re free to stay on the road.
Process for Getting a Title Loan
Whether you live in Atlanta, Georgia to Portland, Oregon, the process of getting a title loan is generally the same. The following are the basic steps you’ll need to go through to apply for this type of loan:
Meet Basic Requirements
First, there are some basic requirements you’ll need to meet to qualify for a title loan. They include being at least 18 years or older and owning a vehicle. You’ll need to have a lien-free car title that includes your name, too.
Most title lenders require you to have a reliable source of income as well. This could be a job or consistent benefits (disability, retirement, unemployment, etc.).
Next, you’ll need to gather some documents and get them ready to take with you to the lender’s office. This includes a driver’s license, a clear vehicle title, and valid vehicle registration. You may need to provide proof of income or proof of residency, too.
Apply for a Loan
Finally, you’ll be ready to apply for your loan. As the experts at georgiatitleloans.com have pointed out, this is a quick and easy process.
You’ll fill out some documentation when you arrive at the lender’s office and hand over the documents listed in the previous section. Then, the lender will evaluate everything and, as long as it checks out, you’ll walk away with cash in less than an hour.
Apply for a Title Loan Today
Are you still interested in applying for a title loan? If so, follow the steps outlined above so you can find a lender that’s a good fit for you.
If you need more financial advice or want to learn about other loan options, we have lots of other resources available on our site. Check out our finance articles today for more information!