Your car is considered an asset, just like your home. If you’ve paid off your bank loan on the car, you own it free and clear. The equity you have in your car can translate into collateral for a short-term loan. These loans are referred to as car title loans.
How Much Are Car Title Loans For?
Car title loans tend to be small, short-term loans. They can range from a couple of hundred bucks to a few thousand dollars. It depends on how much equity you’ve built up in your vehicle. Those who own newer vehicles tend to have higher resale values for their cars, which translates to a larger car title loan amount than a vehicle owner who has an older car that’s worth less money. The exact amount you can get approved for depends on your specific situation.
What Does It Mean to Use My Car as Collateral?
With any secured type of financing, the borrower puts up an asset known as collateral. For example, when you buy a home, the house is considered collateral. If you don’t pay back the loan, the bank will foreclose on the house and take possession of it. For a car title loan, you’re using your vehicle as collateral. If for some reason you’re unable to pay back the car title loan, the title company can seize your collateral.
How Can a Car Title Loan Help Me?
Car title loans are a great financing alternative to payday loans. They provide quick cash in exchange for a short-term loan. They’re perfect for times when you need cash but don’t have any available on hand. Issues such as unexpected medical expenses, car repairs, travel expenses, and even higher-than-average utility bills can put you in a financial bind. A car title loan can provide a quick funding option that allows you to pay the unexpected bill, and there’s even the possibility of getting online title loans. San Diego car owners can use this option for the greatest speed and convenience.
What Do I Need to Get a Car Title Loan?
The specific requirements will vary depending on the car title company you’re using. In most cases, you’ll need to have a lien-free title for your vehicle and a steady source of income and be over the age of 18. While your credit score can play a role in your approval for a car title loan, it’s typically not the deciding factor. The resale value of your car and your monthly income are the biggest determining factors for your loan. Expect to bring your car title, identification documents, and proof of income when applying for a car title loan.
If you need a quick, easy way to secure cash and you own a vehicle, getting a car title loan may be the perfect option for you. For fast, convenient auto title loans, San Diego residents rely on the high-quality service from the team at Payless Car Title Loan. To find out how we can help you use your vehicle to secure a short-term loan, give one of our friendly representatives a call today at (619) 600-0061.