Are you living the American dream? If you are, you’re likely in debt. In fact, 80 percent of Americans are carrying some form of debt, whether it be credit cards, loans, or a mortgage. Most Americans have all three.
So how can you get relief? You may not know this, but you can get a car title loan. It isn’t as hard as you think, even with bad credit. But there are some questions you need to ask before doing so.
1. How Much Money Do I Need?
This is an important question, and the answer is relative to your perceived needs. Some consider a new couch a need, others will say they need to pay the rent. Take a close look at your budget and find out what your most pressing needs are before applying.
2. How Much Money Can I Borrow?
Regardless of what you intend to use the money for, you should know that what you will qualify for is going to be lower than what the car is actually worth. You should check with Kelley Blue Book to get a solid resale value on your car before applying.
There are various factors that will determine the amount of loan you can borrow. These requirements generally vary from lender to lender.
3. Do I Need Good Credit?
The answer to this question is a resounding no. That’s because a car title loan is a secured loan, that is to say, your car title is the collateral put up to secure the loan. Your creditworthiness has very little to do with getting approval.
4. Do I Need To Have a Job?
Many of you have this question of getting a title loan without a job. To get a car title loan you may need to provide proof of income and not necessarily have a job. The lender will want to be sure you can pay back the loan, so they will be looking at your gross monthly income. If you have a job, they will need to confirm your employment and wages before loaning you the money.
5. What Happens if I Can’t Pay Back the Loan?
Plain and simple, you will lose your car if you can’t repay the loan. In many cases, you will have to give the lender a spare key. If you fail to repay they will drive off with your car one day without warning, so be sure not to default. Click here for some tips on how to pay back your car title loan before defaulting.
6. What Can I Spend the Money On?
Unlike debt-relief loans where the lender sends the money directly to your other creditors, a car title loan allows you to use the money however you like. You can buy that fancy new couch you’ve been looking at or take that second honeymoon, the choice is yours.
7. How Do I Get a Car Title Loan
It’s easier than you think. You’ll need identification, employment confirmation, and wage statements. Do a little research before selecting a lender. Look for the lowest interest rate and no prepayment penalties.
Ready To Apply?
At this point, you’ve determined how much money you need, how much you can borrow, what you plan on spending the money on, and how you plan on paying it back. If you need more information about how to get a car title loan you can check out our blog for some helpful tips.