Car title loans, which are also known as pink slip loans, are lending tools taken out against the value of the vehicle. Although these are technically considered collateral loans for cars, you do not actually have to surrender the vehicle while you are in the process of repaying the loan, like you would at a pawn shop. You can get cash for car title loans by handing over the clear title to your vehicle rather than handing over the car itself. You still get to drive around and as soon as you pay the loan back plus interest and fees, you will get the title back with no harm done.
There are a few requirements to get car title loans, but unlike loans and lines of credit from banks, the borrower does not need to have a good credit rating. You can get cash for car title loans as long as you have proof of income, identification, ownership with full coverage insurance, and some basic documents such as utility bills and references. And, of course, you must ask yourself if you will truly be able to feasibly pay back this loan. Because if you can’t, you’ll be in a worse situation than you were when you began, since you will no longer have your car.
Collateral loans for cars are often put in the same category as pay day loans since they are both subprime loans, but there are significant differences between a payday loan and a pink slip loan. With a payday loan, they simply take a check for as much as a few hundred dollars and deduct the amount from your paycheck. With car title loans, they take the title to your car and give you as much as half the vehicle’s value with anywhere from a few months to a few years to repay.
It’s important to pay these loans back responsibly, but as long as you do you’ll keep your car and be able to pay your bills.
If you’ve found yourself in a financial emergency such as illness or layoff and are facing late mortgage payments and other unpaid bills, you may be able to apply for car title loans. California drivers who have clear titles (also known as pink slips) for vehicles that are paid in full with complete automotive insurance coverage can get loans for as much as 50 percent of the vehicle’s value in many cases. And the best thing is that you can get cash for car title loans without filling out a lot of tedious paperwork and waiting days to see if you’re approved.
Basically, car title loans are short term lending tools that are borrowed against the value of the vehicle. When people decide to take out one of these loans, they agree to pay back the full amount of money borrowed plus interest and fees within a specified period of time, which may be a few weeks or a few years depending on the lender and the amount of the car title loans. California borrowers who fail to make several payments in a row, however, will have their vehicle repossessed. But as long as payments are made responsibly there should never be any problems.
In order to get cash for car title loans, you can choose to apply with a lending firm online, over the counter or on the phone with documents proving ownership of the car and proof of income, in addition to some references and utility bills in most cases. Your application will be assessed and a loan amount will be approved. Payouts are usually administered by check, electronic transfer, wire transfer or even in cash. This depends on the lender, of course. In any case, the money can be in your hands in less than 48 hours as long as you are approved.
There are many situations where you might need one of these car title loans. Just make sure to act wisely and only borrow what you can afford.