All You Need to Know about Auto Title Loans

In times of financial troubles, people are looking for the fastest and simplest way to resolve them. Quite often if you are in need of urgent cash to solve an unexpected problem such as overdue utility bill or mortgage payment or unforeseen medical expenses, the more traditional loan lenders are not an option. In such cases, the auto title loan can be one of the best solutions you can find. Here is all you need to know about auto title loans and how they can help you in case you need emergency financing.

Auto title loan overview

auto title loan is a usually a short-term loan for a relatively small amount, where the borrower uses their car as a collateral for the money they get. Auto title loans gained popularity in recent years because they are fast and easy to get and are available even to people with bad credit history since the providers do not run a credit history check on the applicant.

The requirements for a provider of auto title loans in Long Beach, CA would be different from those for a provider in Alabama. But in general are the following:

  • The applicant should be 18 years of age
  • The applicant should be resident of the state in which the loan provider operates
  • The applicant should have the vehicle title deed on their name
  • The applicant should be able to provide ID, driver’s license, proof of their current address and of their income as well as the registration and insurance documentation of the vehicle
  • Bad credit is not a problem

Most of the title loan providers require that the vehicle is paid in full so that it can serve as a collateral, however, some may make an exception.

It is good that you can use not only your car but also a truck, trailer, RV, motorcycle or a boat as a collateral for the loan that you need. The amount that you can get generally depends on the brand, model, year and the overall condition of the vehicle you use.

How to select a title loan provider?

Selecting the right title loan provider is quite important, as you will need a trusted partner to help you out of an unpleasant situation. Make a research on the internet or ask friends and relatives who have used the services of such a company. Note that the company should operate in the same state where you live.

Keep in mind that legislation varies from state to state. Providers of auto title loans in Long Beach, CA follow different rules than providers in Alabama.

Do not hesitate to contact several companies and ask them about their conditions prior to making a decision.

Look for a company that is easy to reach and whose representatives are ready to answer your questions and explain in details anything that you find unclear. It is important to get familiar with all terms and conditions prior to selecting your loan provider.

You can also research the amount you can receive on your auto. Opt for a company that is ready to give up to 100% of the Manheim value of your vehicle.

What to pay attention to?

The interest rate is quite important but it shouldn’t be the only factor that determines your decision when choosing a title loan provider.

Check if you will be able to keep and drive your car throughout the contract – while the majority of the companies do allow this, make sure that it is the same with the one you have selected.

Another important point is whether you are able to pay the loan earlier without a prepayment penalty or if there is a minimum repayment period.

Ask under which circumstances your car will be repossessed and how this is organized. Hopefully, you won’t end up being unable to repay your title loan, however, it is still important to know what may happen in the worst-case scenario.

How to apply for an auto title loan?

Getting an auto title loan is a straightforward and simple process. You can usually apply through the website of the company you have chosen but many providers also have offices and various locations where you can visit them personally.

The approval in most of the cases is within the same day and it can be as short as just 30 minutes.

As a whole, auto title loans are a perfect solution for people who need urgent financing without too much paperwork and hassle.