Before you take the plunge and apply for a pink slip loan you first need to know what a title loan is. Most people know that with a car title loan you use the equity from a vehicle to secure collateral for a loan. Can you apply for and be approved for a normal bank or installment loan? Do you have enough equity in your vehicle? Is your car completely paid off with a free and clear pink slip? Those questions are all very important when determining if online title loans are right for you.
Once you decide to use a car as collateral for a secured loan, it’s important to choose among different options. Use our database to compare nearly a hundred car title loans completely online to find out your financing options. They even understand how payday loans and other types of short-term funding work. Vehicle equity loans function in the same way except for one important distinction. With this type of financing, the borrower will give up his pink slip as collateral. This means the borrower needs to pay his monthly payment on time to stay current on the title loan payments. Any slip up with payments on a car title loan and you run the risk of losing your vehicle to the lender!
Pink Slip Title Loans – What’s Required
Your typical vehicle title loan is set up to be short-term in nature. They’re a quick and convenient way for those who own their car or motorcycle to get cash. According to most online definitions, the borrower in question must let the lender place a lien on their pink slip for collateral. A lender will take physical possession of the actual title before the borrower gets cash.
Take note, there will be a different process for title loans with a salvaged car title. Cash advance funding is almost always seen as temporary but it can last for months. Some finance options can last for years if the amount of money being borrowed is significant. With most online title loans you will agree to the terms before any money changes hands. There are different options for those who may be in urgent need of this form of funding. Some schools of thought will recommend a bank or payday loan. The problem with that is that most payday loan companies require good to excellent credit for a loan.
Can I apply for a pink slip loan with bad credit?
If a borrower wants a pink slip loan with no collateral, they will need to show excellent credit history with no recent defaults. Online car title loans we see today are regulated by a state agency and you can control the interest rate. The same is true for title loans online. The process is similar to your local lender that funds car title loans. These companies are held to strict state regulations the govern the lending industry.
As with all types of loans, it’s important to understand the legal agreement and terms of the contract. While we’re not all legal experts, we need to understand the online process to be comfortable with the terms. Turn to a local law firm or legal aid company, or seek help online to better understand your loan contract. Read up on personal loan agreements and lender terms at the Out Law Website. They have many resources available to all visitors. A service like this should help you to understand the loan contract.
Read the title loan contract before you get a pink slip loan!
With most common bank loans or insurance policies, you have to expect the underwriter will check a credit report. The score and report will determine the exact rates and cash available from the pink slip loan. It’s often not the same case with companies, especially title loan lenders in large cities like Atlanta and Phoenix. With payday loans and cash advances, you’re not using a vehicle as collateral. With equity lending, most borrowers should expect the lender to care more about the value of the vehicle. It’s important that you have the ability to pay back the financing. Some visitors to our site have dealt with a past bankruptcy or vehicle repossession. When someone borrows money from the vehicle equity they are telling the lender to repossess the car if the loan payments fall behind.
What Happens After I Get A Pink Slip Title Loan
After the lender takes possession of the car’s title you’ll be given cash on hand that’s equal to half the value of your vehicle. For pawn services, a car will need to be seen in person. After you’ve made all monthly payments, you can retain possession of the pink slip. The average car title loan is an easy process to cash out equity from a vehicle. But as with most car title loans, there are plenty of other ways to get fast cash.