A title loan is a high-interest, secured, and short-term loan that allows you to use your car as collateral in getting quick cash loans. It is one loan type that accommodates all credit classes; whether you are facing bankruptcy, don’t have a credit history or whether you have a low credit score doesn’t matter.
Title loan providers do not have any business with your credit score or credit history, they are more concerned about the condition and worth of your car. They will inspect your car and value it to know how much title loan you can get. This simply means that for a title loan, your car is your credit.
If you are thinking of getting a title loan, this article will provide you with the right guide.
Your Car as Collateral
Since you are using your car as collateral, your lender can repossess your car if you fail to repay the loan as agreed. Using your car as collateral does not mean you can’t drive your car around; you can still have your car to yourself and drive it around for your personal use. Although, some lenders may install a GPS in the car as a way of having control of the car if you default.
The title of your car is what you are pawning with your lender. They will take possession of your title, and place a lien on it which is later lifted after you have paid off the loan. As soon as you completely pay off the loan you will get your car title back lien-free.
How car title Loans Work
You can apply for a title loan online or visit title loans Virginia. If you are visiting a loan shop, you can drive your car there for inspection and submit the few documents required. Your application is assessed and you will be approved for a loan if all is in order.
You can as well apply online by filling out the loan application form. Attach all necessary documents, and provide a few details about your car such as the model, year, and mileage. They will go through your loan application and contact you to let you know the next step.
Once you are approved for the loan, you will get credited with the loan amount approved. The amount of loan you can get depends on the value of your car and the lender’s evaluation of your capacity to repay the loan. Usually, they approve a loan amount from 25% to 50% of the current worth of your car.
You will get the funds in exchange for your car title. The next thing is to commence payment of your loan according to the repayment plan. This is the most important part of the whole process. You have to adhere to the terms of the contract and pay on time so that you don’t lose your car to the lender. The lender can repossess your car if you fail to pay.
What Documents are Needed?
The documents you need to get a car title loan include the following;
- A clear and free title loan to show that you own the car outright.
- An age declaration to show that you are at least 18 years old.
- A valid car insurance policy is in place.
- Proof of ID such as a government-recognized ID.
- Proof of residence.
- A payslip to show you have a steady source of income.
Here are some of the documents you need to secure a title loan near Virginia. If you own a car and need a quick cash loan, then the option of a title loan is one you can explore. It is easy, fast, and secure. It allows you to leverage the equity in your car.