If you need a little extra fast cash right now but don’t think you can qualify for a traditional loan, consider car title loans. They can be a quick, easy, and financially sensible way to get some cash right when you need it most.
However, it’s also true that there are a lot of misconceptions out there about car title loans. If you’ve heard them, you may think getting one isn’t really a good idea. Properly approached, though, car title loans can be a great way to get that cash you need – and we can put some of those misconceptions to rest right now.
3 common misconceptions about car title loans – and the real truth
- You have to have a good credit history to get one
Not true. In fact, a legitimate car title loan company doesn’t care about your credit history. You must be able to show that you own your car, and therefore its title, free and clear, but that’s about it. Your car title is the collateral on the loan, so your credit history doesn’t matter.
- You have to give up the use of your car to get one
This is one of the most common and unfortunate myths, but it’s also not true. You get to keep your car when you receive a car title loan. You do turn over your car title to the company you have your loan with until you pay the money you’ve borrowed back.
- Car title loans will put you into a cycle of endless debt
Some loans, like payday loans, have a reputation for putting people into endless cycles of debt. That’s not true with car title loans, however.
Title loans are easy to pay back because your repayment terms are clearly spelled out right from the beginning. You’ll know exactly when your loan will be paid back as long as you make your payments on time – and you can pay your debt off early with no penalties. In addition, the interest on a title loan is much lower than that of a payday loan, making it even easier to pay back your loan quickly.
Some truths about car title loans
- You can borrow up to $10,000, depending on how much your car is worth
Because your car is the collateral for the loan, the amount you receive will depend on the value of your car.
- The application process is quick and easy
Simply go online and fill out the application. If you qualify, you can receive your loan amount in as little as 24 hours.
Most people will qualify for car title loans, but there are a few eligibility requirements. They are:
- That you own your vehicle free and clear, with no payments still to be made to private or financial lender (and no lease)
- That your vehicle is model year 2007 or newer
- That there are less than 200,000 km on the odometer
- That your vehicle is fully insured
- That you are at least 21 years old
- That you have a valid checking account
Ready to apply? Car title loans can be a valuable resource. You get the money you need fast – and you won’t have to lose the use of your car or pay high fees and interest. Take care of financial shortfalls with this safe, quick and easy way to borrow the money. It will be in your checking account 24 hours after approval, so that you can get those bills paid or catch up on other expenses without sacrificing peace of mind.