What Happens to My Car When I Get a Title Loan?
Will Something Happen to My Car When I Get a Car Title Loan?
You may be considering all your loan options if you are faced with an unexpected expense. Financial emergencies do not wait for the weekend, so you need a loan option that can keep up with your time constraints.
However, some of the available loan options could have high-interest rates and hidden fees – putting you in a worse position than before. You may also have to meet some requirements during the approval process, like having a perfect credit score or financial background. Instead of applying for a bank loan, have you considered an auto title loan? They can be simple to obtain! You can secure cash by pledging your car title as collateral and meeting the necessary requirements. That’s it!
While car title loans can sound great, you may ask yourself, “What happens to my car when I get a title loan? Will I lose ownership of it?” No! As long as you’re on time with your installments, you will not lose your vehicle. Yet, a title loan lender has the legal right to repossess your vehicle if you miss payments and default on the loan. You can potentially avoid that consequence by setting up a payment schedule to keep you on track. If you have problems during the repayment process, you could always contact your title lender.
Do you want to apply for a title loan? Learn more about how they work and where you can get one!
So, What Happens to My Vehicle When I Get an Auto Title Loan?
When you get an auto title loan, you typically use your vehicle as collateral to secure the loan. This means that if you fail to repay the loan as agreed, the lender has the right to repossess your vehicle. During the loan period, you continue to drive and use your car as usual.
In some cases, the lender may place a GPS tracking device on the car or require you to install a starter interrupt device, which allows the lender to remotely disable the car if you fall behind on your payments.
It’s important to carefully review the terms and conditions of the title loan before you agree to it, as repossession can have serious consequences for your financial situation and your ability to get around. If you can’t make your payments on time, it’s important to communicate with the lender and try to find a solution that works for both of you.
During the repayment process, you can continue to drive your car like it is business as usual. But, if you cannot meet your payment obligations at any point, make sure to reach out to your lender or servicer and discuss your options with them. It is important to call before you default to avoid the worst-case scenario! Most lenders are willing to work with you to avoid repossession.
How Do Title Loans Work?
As you may know, a car title loan is a secured loan where the borrower uses their vehicle title as collateral for the money. The title lender will assess the value of the car and offer a loan amount based on the applicant’s income and the amount of equity in the vehicle.
However, if you are like most first-time borrowers, you may not know much about your car’s current equity- that’s okay! Thankfully, many online appraisal tools can help you find a rough estimate of your vehicle’s equity. You can use those tools to obtain an equity estimate, and in some cases, you will be able to obtain a loan quote as well. With that result in hand, you can find out if your vehicle qualifies for an auto title loan.
Remember, you will not lose access to your vehicle during the title loan process if you’re responsible for your payments! Contact a title lender or servicer such as LoanMart if you have questions about auto loans!
Do Title Loans Offer Other Benefits Besides Allowing Me to Keep My Car?
Yes, title loans may offer other benefits besides allowing you to keep your car. These benefits may vary depending on the lender, but some common benefits include:
- Quick Approval: Title loans are often marketed as a quick way to get cash. With some lenders, if you are approved, you could get your funds as soon as the next business day.
- Bad Credit is Not Usually an Issue: Title loans are known for having high approval rates, although not every individual that applies will be accepted. However, you can still qualify for a car title loan even if you do not have a perfect credit history. Since collateral is used to secure the loan, the approval process can be much more flexible.
Regardless of which title lender you choose, you can typically expect a quick application and flexible approval process! It can be easier than you think to qualify for a title loan. Depending on your lender or provider, you may be able to get loan terms that fit your budget. In fact, many title lenders can offer exclusive perks that add to your overall loan experience! Just speak to your title lender to see what benefits you could receive through them.
If you’re on the line with them, you could also ask any questions you may have about car title loans. If you have questions about the process or concerns, they may be able to assist you.
Once I Found Out What Happens to My Car When I Get an Auto Title Loan, Where Can I Apply for One?
Now that you know what happens to your car when you get a title loan, it’s time to apply for one! The approval process can be simple and flexible. You can easily apply for a title loan online once you find the right lender.
No matter which title lender or provider you apply for, you could potentially acquire funding without a problem! Start the application process online today and see if you can qualify!