How Do Car Title Loans Work? A Complete Guide


There are times when we all need money fast. It could be for bills that need to be paid or for emergencies that spring up at the worst possible times. While many people understand the basics of getting a loan, they don’t know the specifics.

How do car title loans work? They work the same way as other loans, but with a few unique quirks. We’ll examine the car loan process and what you need to get one. If you’re in need of emergency cash, then a title loan might be the right choice for you.

You’ll have a better understanding of title loans and be able to make an educated decision.

How Do Car Title Loans Work?

When you go to a bank, you must jump through a lot of credit hoops before you get your money. They’ll run a credit check, seek collateral and it can take days for final approval or disapproval.

This doesn’t work if you need money fast. Car title loans can get you the money the same day and depending on the value of your car, can get you thousands of dollars.

If you own your car, you can bring in the title and a few other necessary paperwork and walk out with money. They’ll take the title and you pay the money back, just like you would any normal loan.

When the loan is paid off, you get your title back.

Little or No Credit Hassle

Do you have bad credit? If your credit score is low, then there is little chance of being approved for a standard bank loan. The first thing the bank does is run a credit check and get your credit score.

Title loans have few, if any, credit requirements. The loan amount is based on the value of the automobile. If you can prove you have a job and can pay back the loan, the title of the car is the only collateral you need.

Your credit score isn’t important. They understand that it can be difficult to maintain a good credit score or that you’ve made credit mistakes in the past.

Short Term Loans Are Easier

There are many loan options and they often have longer periods to pay them back. If you need money fast, you don’t want to pay it back over a year. You’re racking up the interest and paying a small portion of the principle.

A car loan is a short term and often require payment within 30 days. This makes it easier for you to pay the loan and get your title back.

You’re not buying a house or a new car, you don’t need a long period to pay it back. It’s a small loan, so pay title loans back quickly and move on with your life.

Title Loans Solve Your Problems

When you need cash fast, then title loans are a good option. How do car title loans work? They work by giving you the money you need on the same day if you have a car title.

If you want to learn more about title loans, then explore our site.

Jeff Campbell

Jeff Campbell is a husband, father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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