Owning a car which is fully paid or nearly paid off allows a person to qualify for car title loans. Car title loans are loans which depend on the equity of your car. It is the best step towards quick cash.
The most common question when it comes to car title loans is, “Do I need to get my car checked?” The answer is a simple yes. Of course you need to have your lender check your car because your vehicle will be used as collateral for the loan. It helps lenders decide whether to approve you a car title loan or not regardless of your credit standing.
Your Car Is The Deciding Factor
Without your car, you can never get cash through car title loans. As your vehicle is the collateral, its appraisal is a crucial part of your car title loan application process. This is because it is during your car’s inspection wherein your lender will be able to decide how much you will be allowed to borrow.
The amount of your car title loan relies so much on the purchase price of your vehicle less value of your existing loans with the car. Therefore, it is impossible for you not to submit your car for the lenders to check.
What Can You Use The Car Title Loan For?
Because of a car title loan’s flexible and fast approval, most borrowers choose them over other sources of funds. You can use car title loans to finance anything that is legal. Below are the most common uses of car title loans.
Improve Credit Score. Title loans help improve a person’s credit score. Many borrowers use the equity of their vehicle to pay off high-interest debts. This is what is usually termed as debt consolidation. The result is a good credit score while still getting to keep and your precious vehicle with you during the loan term.
Rest and Relaxation. Most borrowers of car title loans use the cash approved to them for a great holiday away from the stress of school or work life. Because they don’t have enough cash for a dream vacation, they make the most of their vehicles through a car title loan.
Home Repairs. There is nothing more bugging than a crumbling house. Problem is you don’t have cash for its repair. Now with car title loans, it is easy to get cash for a home repair. As long as your vehicle is nearly paid off, you can have a loan approved even on the same day of application.