A title loan provides you with an easy cash option but you will need an owned vehicle. It uses this vehicle as a collateral to provide you a loan. These title loans are available offline and online as well. You just need to sign the papers and not actually keep the car with the lender. You can drive your car as it will be with you only. Only four wheelers are eligible for a title loan, at the moment.
Requirements for a car title loan:
- The vehicle you are going to keep as a collateral should be registered on your name.
- You must have at least some source of steady income, so that you can repay your loans.
- You should be a resident of the state in which you want to take a loan.
- You must be at least 18 years old.
- Your car should not be a collateral for some other loan taken from any bank.
Requirements if you applying for the loan online:
To apply for a loan online, all you need is to fill out the form provided on loan provider’s website. Loans are generally handed out on an easy EMI basis, where you have to repay your loan over a long period of time. This gives you flexibility in managing your finances and can be a boon if you are in the middle of a financial crisis. Early repayment of loans are liable for a decrease in the interest to be charged. The other special requirements to avail a loan online are:
- A valid social security number or tax identification number.
- A bank account number, where the loan amount will be transferred.
- You might have to mail the car registry.
- A valid contact number.
It is necessary that your vehicle is paid off, before you apply for a loan. In case you do not have your car title with you please contact your local tax office. You should note that, you are eligible for a loan only if the vehicle is registered under your name. In case the vehicle is registered on some other name, you become ineligible for a title loan.
Other important things to know about a car title loan:
- You are eligible for a loan only by keeping one car as a collateral for the loan. In case you own two cars and want loan on both of them, you will have to apply separately for both the loans.
- You can either send a check on the address of the lender or choose to pay via electronic funds transfer facility.
- The terms and conditions for the loan may differ from state to state. It is better to have full information about the loan, loan repayment, easy monthly installments, and interest, before you sign the loan document.
Now cars can also serve you in times of your financial crisis. There are not many options that provide you easy loans, even if you have bad credit scores. All you need is a car.