Did you know that the average person has more than $90,000 in debt? That’s a sure sign that we’re either not making enough to make ends meet or we’re living beyond our means.
Statistics show that many people live paycheck-to-paycheck and struggle to manage cash flow. They turn to different types of loans for quick cash, including car title loans.
Cash loans on car titles work a bit differently than other types of loans. Keep reading to get the lowdown on car title loans and how you can get one.
What Are Car Title Loans?
A car title loan is a form of secured debt. With a credit card, if you don’t pay it off, you go to collections and your credit score drops. That’s a type of unsecured debt.
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Since a car title loan is secured by your car, you can lose your car if you don’t pay the loan back on time. Some borrowers do face repossession if they can’t pay the loan back.
The alternative is that they take out another loan to repay the old loan. That’s why you absolutely have to be certain that you can repay the loan in the given timeframe.
How Much Can You Borrow?
The amount of money you can borrow depends on your lender and the value of your car. If you have a loan on the car, the amount of equity you have in the car determines how much you can get.
The best car title loans offer about 50% of the value of your car. Other lenders only cap car title loans at 25% of your car’s value.
How to Get Cash Loans on Car Titles
The first step is to find out if your car qualifies for a car title loan. You have to own the car. It can’t be a lease.
You can apply for car title loans online. You’ll need to provide documentation to show your ability to pay the loan back. Documents include recent pay stubs, a copy of your title, car insurance, and driver’s license.
Lenders may ask for other documents. If the car qualifies the loan will be approved by the lender. You sign the documents to finalize the loan. Then the cash gets deposited into your bank account.
Before you sign the loan paperwork, make sure that you know what the fees are and when you need to repay the loan. In most cases, car title loans have to be completely repaid within 14-30 days.
Know Your Options to Get Fast Cash Fast
If you’re in need of cash right now, your options are a bit limited. Fortunately, you can get cash loans on car titles. These loans are risky because you could lose your car if you can’t repay the loan.
Do your research to find the best car title loans and read the paperwork carefully. You have to know exactly what you’re signing up for. Once you review the paperwork, you can get quick cash for your car title.
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