Need a loan…fast?
Depending on your circumstances, a vehicle title loan may be the way to go.
This type of loan is also called a “title pawn,” “U-Drive” or “pink slip.” (You’ll see why in a minute on the latter.) Technically, it’s a ‘motor vehicle equity line of credit:’ in other words, your car, truck or SUV is your collateral. Which means:
*It doesn’t matter if you’re self-employed, on a fixed income…or even unemployed.
*Your credit rating isn’t checked.
*Other financial commitments don’t play much into this, either. This is a loan that basically deals with one item: your vehicle.
What do I need to apply?
*Free-and-clear title to your vehicle. It should say “no liens,” or the lien holder line is blank. This is often on a pink slip of paper. (See why the loan has the name it does?)
*Photo ID – a driver’s license works best. (Some companies also ask for a SSN and proof of insurance.)
*Depending on which state you live in, you may also be asked for proof of income: paystubs, bank statements, income tax returns, items like that.
Some companies also ask for ‘proof of residence,’ using a utility or cellphone bill, mortgage or renter’s info. References may also be requested.
Ok, I’ve got that stuff. What’s next?
This is the easy part; you can almost always apply online. And the process is fast: you’ll know within a few minutes whether your loan’s been verified and/or approved. Then all you need do is bring your vehicle to the store, meet with the rep, finish the approval process (20 min. or less, generally)…and get your cash.
How much can I borrow?
It depends on your vehicle’s year, make and value, to begin. Then the company will help set a budget based on how much you can afford to repay, month by month. The amount could be as little as $100, or as much as $10,000. It all depends.
Can I repay my loan online, or make prepayments?
Generally yes to both. Make sure to read the fine print before you sign the contract, to know exactly what’s required of you.
Do I have to give up my vehicle to get the loan?
No, you keep it. As long as you faithfully make the payments on the loan, your vehicle stays with you.
Can I get a loan based on any other equipment?
Some companies do lend on other things, including campers, trailers, boats and motorcycles. Ask when you apply.
Interest rates are set by the company…ask to make sure you understand. And if you don’t make payments, your vehicle is at stake. But if your credit rating is uneasy, you need money fast, and you have difficulty finding other ways to come up with it, this might be the way to go.