Is this your first time with auto title loans? Welcome! This page will help to guide you through the process and explain everything that you need to know about how title loans work before deciding to get one. The process of obtaining a car title loan is actually much easier than most folks think. The main reason individuals are under that impression is because they don’t know how title loans work. We hope that we can be the ones to clear that up for you so you can make the most informed decision possible.
Car title loans are a type of secured loan which uses the value in your car as collateral for the loan. The fact that lenders use your vehicle as collateral allows them to approve customers that might be rejected from more traditional lending institutions because of their credit score. When a lender approves a customer for a title loan, they sign onto the customer’s car title as the lienholder which gives them a property claim on the vehicle. However, you do not give your car up at all during the life of the loan. You keep driving your vehicle as you normally would while you are making the monthly payments.
The Step by Step Process: How Title Loans Work
The car title loan referral and borrowing process includes four simple steps which are as follows:
First, fill out our quick and easy online information request form located conveniently on our homepage. We will receive your information and match it with a lender in your area.
Shortly after you submit the online form you will receive a call from one of our friendly and knowledgeable title loan agents. They will be able to give you a free quote and discuss with you your possible future steps if you wish to move forward with the lender in question.
The lender we matched you with will then request various documents from you including: a government-issued ID, your car’s free and clear title, three references, proof of insurance, your social security card, and pictures of your car. Once you are approved, the lender will ask you to sign the loan agreement and physically verify the condition of your car and its odometer.
Once the contract has been signed, the lender will sign onto your car’s title as the lienholder and save the title for safe keeping. You will be able to drive off with your money there and then and you are free to use the money however you see fit. We, nor our lenders, ever dictate how your loan ought to be used.