What is a Title Loan?
Do you need money in a hurry? As in…you need it in matter of days? That’s when a title loan can help you out – when cash is a must and you just can’t get it any other way.
So what actually makes a title loan? Anything where you place an asset as the collateral is a title loan. You don’t have to deal with a credit report because it is the value of the asset that is under consideration. If you default, the lender wants to be able to sell the collateral and get his money back. A lot of times you don’t even have to leave the collateral with the lender. Much of the time you just have to provide some paperwork showing that the lender holds the proof of owning the asset. If you take out a title loan on your car, you’d likely have to give the lender a set of keys and a way to track the car. For that to work, though, you have to have the clear title, without any other loans.
What makes title loans so popular?
First, you don’t have to have a credit score. You just have to have clear title to a car.
Second, oftentimes the lender can process your loan 24 hours a day, seven days a week.
Third, in many cases all you have to do is surrender the title. Depending on the lender, you may not even have to give him a set of keys.
Finally, it usually just takes an hour or two for a bank to process the financing, which means you get approval much faster than you would with an unsecured personal loan.
What makes title loans so unpleasant?
Well, you definitely want to pay attention to the interest rate. Some provinces limit the rate that a title loan lender can charge, but you definitely want to read the fine print about rates, charges, fees and the like.
If you don’t meet you loan commitments, the lender has the ability to seize the vehicle being used as collateral. In the meantime, a lien enters your car title until you have paid this loan in full.
Also, you don’t get the full value of the car in the loan. There is always a limit set at a specific percentage of the car’s value.
Amansad Financial does not offer title loans as a company, but we do have connections with funding sources that offer title loans on short notice.
So how does it work? Our lending network can give you access to title loans with these perks:
- Approval for as much as $30,000 the same day.
- No credit check on your easy application online
- No fees up front
- Guaranteed confidentiality
- Credit references for other loans
- Open loan – no prepayment penalty
- Payment plans available for terms up to 5 years
- We specialize in lending to the self-employed
What are the requirements for a title loan?
- Your car can’t be older than eight years
- Clean title (note: if there is a very small lien, lender may simply choose to pay it off and register their lien)
- Valid driver’s license
- Owner is at least 18 years old
- Owner has a full coverage insurance policy
- Copy registration papers to confirm ownership