Most of us are well aware that car title loans and most other types of payday lending can cause financial problems.  If you do a quick search online you can read all sorts of stories about people who lost their car to a repossession or fell behind on a payday loan.  These stories always end up in bad situations but a secured loan can work out well for someone in a specific situation.  Consider an applicant with a credit score of 500 who needs $2,000 to pay for a new water heater.  It doesn’t even make sense for that person to submit an application for a personal loan.  We know they have little to no chance of getting approved with a credit score that low.  Even a credit union or installment loan lender will probably deny them for funding as most of those companies only look at a borrower’s credit history.  But did you know there is a scenario where someone with that same credit score could get fast cash by taking out a loan?  By using their vehicle’s collateral, that person can get funded within a day or two of applying online.  Even better, you are able to complete the loan process and still keep your car.  The lender will want you to hand over the actual car title and you will need to pass a vehicle inspection. 

The whole process of applying is most likely a lot easier than you would expect.  It can take days or weeks to get a lending decision from a big bank or mortgage lender.  Even some payday advance services will make you submit a huge amount of documents only to give you a few hundred dollars. With most services, you fill out an easy application and look for an online approval in a few minutes or hours.  After that you can expect an in person vehicle inspection but that is the last step before you get the loan proceeds.  Of course, it pays to know your rights when it comes to a vehicle inspection.  It’s also critical to know what happens if you face a repossession or fall behind on payments.  For example in California you have a certain amount of time before the lender can sell your vehicle.

Here’s Why A Car Title Loan Online Could Be Good For You

You get your money quickly:

They don’t call it a fast cash loan for nothing!  With most online companies, you can expect to be approved in an hour or two.  Many services will give you cash withing 24 hours after the vehicle inspection.

Applicants can be approved with bad credit:

Who would have though there are funding options available to people with bad credit?  We’re often told there is no chance of getting an online loan if you have poor credit but that’s not true.   Most title loan companies will look past your bad credit history.  When you apply for an auto pawn, you use the vehicle’s pink slip as collateral.

The lender will look at the car’s condition to come up with a loan amount:

Much like a situation where you don’t need good credit, most lenders will want to know the status of your car.  Is the original bank or credit union paid off?  Do you own the car clean and clear and can you provide a solid pink slip?  Is the condition of your vehicle good and can it pass an in person inspection?  Those are the biggest factors to look at when you determine what a lender will allow you to borrow.

Most applicants can keep driving throughout the life of the loan:

There’s often a misconception that taking out a title loan means you have to hand over the keys to your vehicle.  While that may have been the case years ago, it’s not true.  The standard protocol now is that you can keep driving your vehicle.  You need to hand over the pink slip but you will be able to drive yourself to work or wherever else you need to go.   After all, what good is borrowing money if you don’t have means to get to work?

Lower fees and interest rates than a payday loan or cash advance:

A car title loan will often lead to fewer fees and finance charges than what is standard with typical short term loans. As you use a pink slip to back the loan, a finance company can impound or repossess your vehicle if the loan goes into default.  So they don’t need to charge as high of a fee as what you expect with a payday loan or even an installment loan. Because of this diminished fee, they are regularly more affordable than a cash advance.

A Secured Loan can bring less stress and worry if you go with the right company:

You’re always going to have the risk of losing your vehicle to repossession if you fall behind on monthly payments.  But that’s a worse case scenario.  If you have enough equity in your car, it sometimes makes sense to go with an equity lender over other online payday loan companies.  Payday loans and cash advance companies will hit you with huge interest rates.  Use your vehicle to your advantage and get the money you need!  Find out what documents and information is required with Premier Car Title Loans, and avoid having to wait days for cash.  With our online application you get the cash you need and all the rates and terms are broken down for you in easy to understands ways.

Do Research Before You Use A Pink Slip As Collateral For A Loan

In the right circumstances, you can see some benefits of going with an auto title lender.  We’re not saying it’s the best course of action for most people who need a short term loan.  We always point to more reasonable choices like a bank loan if there’s ever a need for short term cash.  Or you can turn to a friend or family member to see if they’ll give you money to make it through a financial emergency.  Outside those options, you tend to run out of viable alternatives.  For those with equity in their vehicle it may make sense to look into a car title loan. 

Jessica has blogged about the title loan industry since 2012. Before that she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions that relate to short term loans!

You have many options when you finally make the decision to use your car as collateral for a loan. That wasn’t the case just a few years ago. Back then you had to physically go and meet with a local lender that provided equity loans. This meant that many consumers in rural areas have little to no chance of getting cash for a car’s pink slip.

In some neighborhoods, there is a title loan company or payday lender on every block. Many of us know these services are widely available in the local area and online. That leads some people to take advantage of quick money loans to meet the costs that come with an unexpected bill. Take our site for example. You can use a site like Premier that offers car title loans online to get a quote for your vehicle’s equity. It will often take less than 10 minutes to submit an application. That’s an efficient time to get cash and it makes your life simpler. There is a downside when it comes to securing a loan with a vehicle. Like credit cards, or payday loans, a secured loan when used responsibly can be a huge lifesaver. On the flip side, if the full amount is not repaid by the due date, the penalties and finance charges are costly. That’s why you need to evaluate your financial and budgetary situation to find out if this type of funding is in your best interest.

We all know that cash advance loans have minimal paperwork. In most circumstances these loans don’t go through the long underwriting process that we see for a typical bank approval. The same is true with a pink slip loan. In this situation, online title loan companies will determine the amount you can borrow. Most funding decisions are based on your vehicle’s equity. Most online companies issue these loans on a short-term basis to persons experiencing cash flow problems. Banks and other financial institutions allow repayment of an online loan over a course of several months. Cash advance or payday loan companies will need full repayment within two weeks. Some companies allow 30-day loans. For this matter, a fast money advance can be ideal during emergencies. Nonetheless, applicants need to repay the full balance plus fees within a short time frame.

Most people are attracted to title loans because of the easy approvals. Applying for a personal loan from a bank is frustrating, and often results in a loan denial. Why? For starters, banks are cautious when it comes to lending money. Even if you have good credit and a sizable income, it may be hard to acquire a bank loan. But, cash advance companies approve funding minus the headache. There are no credit checks, and collateral is not necessary. Applicants who meet a few basic requirements can have funds within 24-hours. The title lender will want to verify some employment information. They may request and review pictures of your vehicle and send a notary out to verify the car in person. The money is deposited into a bank or checking account. Unfortunately, nothing in life is free. Before applying for a short-term personal loan, inquire about loan fees. Furthermore, it may be in your best interest to research different companies, and choose the lender with fewer fees. Cash advance fees are based on the amount borrowed. Companies that let you use a car as collateral will charge $10 – $30 for every $100 an applicant obtains. If choosing a 30-day loan, the fees will double. Avoid excessive fees by borrowing as little money as possible. Pay back the money quick and work out a budget for each month. Most financial companies do not tolerate late payments. Once the payment is late, interest and payments will incur until the loan gets back to a current status.

What is different between an online title loan company or local lender?

Applying for title loans online can be easy. There are two options available to quick cash loan applicants. Some borrowers will want to work with  local companies in their neighborhood. Bring a copy of your most recent paycheck stubs, banking statement, and driver’s license. Complete a loan application, and wait for a quick response. Applications are often approved on-the-spot after a quick vehicle inspection. Another option is to submit an application with an online company. This process is simple and won’t take much time to complete. You will need access to a fax machine. This is necessary for providing documents to the company. Funds will be sent when a borrower submits a loan application and gets approved. On average deposits take up to 24 hours after the vehicle inspection. Some lenders offer one-hour or same day cash advance loans.

Jessica has blogged about the title loan industry since 2012. Before that she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions that relate to short term loans!

Consumers will often shop around for the best deals for car loans and mortgage rates. Many of us compare offers from different lenders when looking to buy a house. Why not use those same practices when you’re looking for a car title loan?  It’s best to use that same strategy to get the best lending terms. With that, it’s not always easy to compare different companies and what they offer. Shopping around for any type of personal loan is somewhat daunting. Different lenders have various offerings and requirements. You may feel intimidated by meeting with a local lender. Or you may feel less safe working with a company that does everything online. We’d like to help you gain the knowledge to go out and shop a car equity loan, even if you have bad credit. Knowing what questions to ask will ease the process and help the Premier underwriting team gain insight into your application.

To start you should consider a company that you’ve worked with in the past. This increases the likelihood of getting approved for the best rates and terms. Then, reach out to other title loan companies for a comparison. Comparison criteria include, but are not limited to: interest rate, repayment schedule, and loan amount cap (how much you can borrow). During these consultations, the underwriter will likely ask questions about your personal situation. For example, how much are you looking to borrow, and what your credit score is like. Max amounts for borrowing money with your pink slip will max out at around $50,000. This means you will only be able to borrow up to that amount, depending on your credit and income. The main variable here is how much your vehicle is worth. The more your car is worth, the more you’ll be able to get by using your car as collateral for the secured title loan.

Find an online lender that fits your budget

Ask your customer service rep how long you have to repay the debt (could be 2-3 years or more/less).  Find out what the minimum payment amount would be. Ask if it is possible to prepay without paying any penalties. It’s important to find a company that lets you pay off the entire amount early. This mitigates the risk of huge interest rates down the road that we often see with this type of borrowing. Do you have a checking account at a bank or credit union? If so, see if you can have the monthly payment deducted each month. See if you would qualify for a discount (of up to 2% in some cases) by doing an automatic withdraw. Also, see if you can move accounts to the bank to qualify for a favorable interest rate.

The interest rate on a personal car equity loan can vary based on your credit rating and online lending conditions. No matter what, your interest rate with a car title loan is high. Before signing a vehicle equity loan contract, see if there are any alternative options, such as a home equity loan or credit card cash advance. This is especially useful if you are a homeowner and have a good amount of equity in the property. This method could cut your interest charges and you’ll be able to keep driving your car!  Don’t hesitate to compare different companies that provide online funding.  Armed with the above tips, you are now better able to handle a meeting with a lender to qualify for a loan. Ask the company as many questions to make an informed decision. This could save you thousands of dollars in the long run.

Jessica has blogged about the title loan industry since 2012. Before that she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions that relate to short term loans!

Just like any industry, you’re bound to come across dozens of myths and unknowns that people bring up about a business. Some of these misconceptions aren’t at all true and some don’t make any sense. There’s always confusion when you discuss financial options and different lending and finance terms. But it’s important to find out what’s really going to happen with a vehicle pink slip loan. Here are the most common myths we hear about car title loans.

Myth #1: You need to hand over your keys when you take out a loan.

This myth has been around for years and in the past it used to have some validity. A few decades ago, the only companies who provided car equity loans were pawn shops. Much like you would expect to happen if you pawned a guitar or diamond ring, you had to hand over your vehicle as collateral. These days, financing arraignments where you hand over both the pink slip and keys are rare. Most online lenders will gladly settle for only the pink slip. They know you need a vehicle to get around and drive to work. After all, how could you get to an office or place of business if you don’t have a vehicle? We know of a few pawn shops and even some title loan companies who still need borrowers to hand over the vehicle as collateral. Many of these services are marketed in pawn shops. The others are online lenders who work with high risk borrowers. As there are many financing options available today, we recommend staying away from these services. Work with a title loan service who lets you keep the keys to your car!

Myth #2: The fees are often the same no matter which company you work with.

Car title loan companies are similar to mortgage companies and even traditional banks and credit unions. Many of these service providers are looking for new business and new loans to write. That means there’s a lot of competition for business. But they’re not going to automatically give you a low rate or good term if you don’t ask! Take a mortgage provider as an example. The competition in this industry is very high. We know customers shop around for the best rates and finance amounts. So a bank or mortgage lender will be proactive in providing the lowest rate possible. Compare that to what you see with vehicle title loans. Many of these companies are giving out the industry standard rates. Most consumers fail to shop around for lower interest amounts because they believe there’s no flexibility. Take Premier Title Loans as an example when looking to improve contract terms. Even with this site, you should definitely ask your customer service rep if there is any way they can lower the total amount of fees and charges. Consider the amount of money a car title loan lender losses out on if they pass on a consumer for whatever reason. Now, think about how many more applicants they can bring in the door by lowering the rates on their secured loans by a small amount. Don’t hesitate to ask your lender if they can lower the rates or make the financing terms more favorable. It never hurts to ask as the worst thing they can do is say no!

Myth #3: You will always pay a huge amount of money in interest when you take out a loan.

It’s true that a car title loan often comes with a huge APR. If you look at the loan agreement or fine print of any lender finance contract you’ll see an interest rate that could approach 100%. On paper this is a huge amount of money. It will end up being a large sum if a borrower took out the loan and didn’t pay off the loan early. That’s why it’s critical to look at a car equity loan more than a short term emergency fix. Let’s say someone takes out a  title loan that’s payable over 2 years. When you factor in the APR over 24 months it will be an incredible number. Even after 30 days the amount will be high, but that’s where you need to cap it at. Treat a car title loan as a short term obligation by paying it off as quickly as you can. Instead of paying finance charges month or month you need to do whatever it takes to pay it off in weeks instead of months or years. Contact your title lender before you take out the loan. Confirm with them that you won’t be subject to a prepayment penalty if you pay off the online loan amount early. By doing this you can get out from under the high APR loan obligation and the creditor will get the money back which they lent out.

Myth #4: You can’t qualify for a title loan with bad credit or no credit history.

Walk into a bank or credit union and ask for a mortgage equity loan or personal loan. The first thing the banker asks will probably be something about your credit score. They’ll want to know what your FICO score is and if you have any past due debts or loans. Getting a credit card or even an installment loan is next to impossible if you have poor credit. It’s a complete opposite when you apply for a secured car title loan. When you use your car as collateral for a loan, you tell the lender the car is theirs if you default or can’t fulfill your contractual obligation. We’ve discussed the negatives which come with this type of secured loan many times and it’s definitely risky. On the flip side, you can qualify for car title loans with almost any type of bad credit. The title loan company wants to know how much collateral you bring to the table in the form of your vehicle. The more equity that’s available in your car the higher amount of cash you can borrow with pink slip financing. Most lenders know they can repossess and sell your car if things go bad as a way to recoup the initial investment. Someone needs to weigh the two different scenarios. Do I need a short term loan so bad that I’m willing to use my auto as collateral for the online title loan? Or can I qualify for another type of unsecured loan where I don’t need to hand over my pink slip?

Take Time To Determine If You Really Need To Borrow Money

Jessica has blogged about the title loan industry since 2012. Before that she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions that relate to short term loans!