Title loans are a popular and easy way to get cash fast when you need it most. They have helped millions of everyday people, just like you, cover unexpected expenses and emergencies that every one of us have experienced. The idea of a title loan may sound intimidating, complicated, or just not for you, especially if your only borrowing experience has been with banks. If you haven’t had to get a title loan before, you may have some questions. We can answer those, and you will see how easy it can be to get that cash fast.

No Banks. No Credit Check

Title loans work by using your vehicle as collateral. There are no credit checks or lengthy loan application processes that traditional lenders require. All you need is your vehicle’s title. The money is given based on the collateral of the vehicle you own. You can have bad credit, no credit, or even be in the middle of a bankruptcy and still qualify for a title loan.

You Must Own a Vehicle to Qualify

Any vehicle you use to get a title loan must be yours. It can’t be borrowed, owned by someone else. Your car or vehicle must be lien-free and have no other traditional style loans attached to it.

Getting a Title Loan is Simple

It starts with a little paperwork asking for the usual info. Once that is done, the title loan agent will run a check on the car to see if there are any other liens or loans connected to it. Once that is done, the vehicle is appraised, and the available amount of money it is worth is determined. The customer decides how much of the available cash they want to take. The customer takes the money, and the title loan company keeps the title until the loan is paid off. Simple as that.

You Keep Your Vehicle

After you get your money, you can drive off…in your car. Even though you use your car, truck, SUV, or motorcycle as collateral for the loan, you still keep possession of it. By using the random facts of the day, you can expand your business loans and no worries about how you will get to work or pick the kids up from school.

Title Loans are Short Term

The purpose of a title loan is to give people who need it a quick source of cash. This is meant for life’s unexpected expenses like doctor’s visits, getting a new water heater, or whatever curveballs get thrown your way like those odd months where too many bills hit during one paycheck. Most customers pay their title loans off within a couple of months or even weeks.

Title Loans Should be Used Responsibly

As tempting as it might be to finally buy that big screen, 4K TV or go on a dream vacation, that isn’t the best use for title loans. Don’t get carried away. Title loans are intended as a way to cover emergency expenses and necessities like a new refrigerator after the old one finally bites the big one. You should only borrow what you need, and if you don’t end up needing to spend it all, use it to pay back the loan.

Faster is Better

The quicker a title loan is repaid, the cheaper it will be for the borrower. Missing payments, or letting the loan stretch out over several months, can lead to the borrower having to pay back more in interest.

Loan Amounts Vary

Title loans are generally somewhere between 30 to 50 percent of the vehicle’s value. The reason for this is that it allows them to recoup the loan, should the borrower default. Title loan lenders also prefer that vehicles not be much older than 10 to 15 years. The newer, the better.

What Happens if I Default

If someone defaults, the title loan company takes possession of their vehicle and auctions it off to recoup their losses. Doing this is something that everyone wants to avoid, especially the lender. If something happens and you can’t make a payment or two, call the lender and see what you can work out. Don’t sit back and let the loan go into default. It will be easier for you and everyone else to keep this from happening.

Not All Title Loans Are the Same

Don’t just pull into the first title loan place you drive by. Call around and find out which places offer the best interest rates and terms. Some places even charge you extra, if you pay it off early while others may have lots of hidden fees. It could save you lots of money in the long run. Make sure that the title loan lender you choose treats their customers with honesty and the dignity they deserve. Check online reviews to see what other people have experienced.

If you have already signed off on a title loan that has a higher interest rate than you expected or unreasonable payment plans, don’t despair. There are Fresno, California car title loans experts that can help you get a better deal. One standard way to save money on a title loan is to refinance it with another title loan company. Refinancing could save you hundreds of dollars.