In life, a financial emergency can arise in many ways. Whether you are late on bills, facing an unforeseen expense from a medical emergency or damage to your home or other property, or need money for rent, it is always a good idea to know where you can get money fast when you need it, and one great source of fast cash is a car title loan.

If you are in need of a couple hundred, or a couple thousand dollars, your mind might first go to considering the option of taking out a traditional bank loan. Unfortunately, this option can be quite restrictive. First off, traditional bank loans can take quite a bit of time to qualify for, from a couple of days to a couple of weeks. On top of that, traditional bank loans have loads of requirements, the most important being a healthy credit score.

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How does my credit score impact my ability to take out a title loan?

That means that if your credit score is less than stellar, it might be nearly impossible to take out an unsecured loan if you don’t have a good credit score. That’s where car title loans come in.

Car title loans are one of the best ways to get a loan if you have bad credit or no credit, and the reason for that is because car title loans are secured loans based on the value on a car, or other vehicle, that you already own. In fact, because car title loans are secured loans, the vast majority of lenders, including Californian lender True Financial will never even ask to see your credit score, and if they do it will likely only be to try to get you a lower interest rate on your loan.

They’re also great for people who are already dealing with a financial emergency because the application process is incredibly easy and incredibly fast.

What do I need to take out a title loan?

In order to take out a title loan, all applicants need is a short list of documents that you probably already have. Those documents include:

Your driver’s license

A copy of your car title with your name on it

Proof of income

Details of your vehicle (this is usually done through photo, video, or an in-person inspection)

If you are worried of being able to supply a proof of income, have no fear. Most car title lenders are incredibly flexible and will accept documents such as pension, disability, unemployment, even an inheritance can serve as a source of income to secure a title loan.

Once you submit your application, title lenders make it their priority to get you your cash as quickly as they can. That can mean that you will have your cash in hand within minutes. Typically, the longest it takes for lenders to approve and provide funds from a title loan is 24 hours.

What is the value of my title loan based on?

If you’re curious about what your car title loan will be based on, the answer is quite simple. Your title loan is a secured loan based on the value of your vehicle. When lenders are evaluating your car, they will look at these specific factors regarding your vehicle.

The mileage on your vehicle

The age of your vehicle

The body and mechanical condition of your vehicle

The current resale value of your car on Kelley Blue Book

While your car’s value is the source of your loan, that doesn’t mean your car will be locked up in some storage during the life of your loan. All you have to trade in to take out a title loan is the lien-free title to that vehicle. Other than that, you can drive and operate your car as usual!

If you don’t have a car, you don’t have to worry. Title lenders accept a long list of vehicles that can qualify for a title loan such as motor homes, motorcycles, ATVs, boats, and more. Of course, the value of your vehicle will always dictate the value of your loan, but it is good to know that you have options even if you do not own a car.

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What are the drawbacks?

Before you take out any loan, secured or unsecured, it is your responsibility to know what the possible drawbacks is of getting involved in a legal and financial agreement with a lender. Because car title loans are secured loans, the primary risk you run by taking out a title loan is by getting your car repossessed. That, of course, only takes place if you default on your loan and are unable to pay.

Even if you fail the pay back your loan by the end of your payment terms, you typically run the option of rolling over your loan. Of course, that does come along with increased interest rates, but it will at least give you more time to gather the money you need to pay off your loan.
In conclusion

In the end, a title loan should usually only be considered an option if you are facing a true financial emergency. The reason for that is because they can help you get the money you need while in a financial emergency. The reason for that is because securing a title loan is easy and fast.

If you are interested in taking out a car loan, one fantastic option to consider is to search online and find lenders in your area.

Title loan laws and regulations can vary greatly from state to state, so it is always smart to do some research regarding title loans in your site before beginning the application process.

Good luck!