Car title loan also known as auto title loan or pink slip loan is a personal loan that is secured by the equity of your vehicle. You get to keep and drive your car. Car title loan process is fast and simple.Get your money today! Get the most money of your vehicle and the best rate on your car title loan A car title loan is a product offered by certain financing companies. The premise is that you obtain a loan and in return, you put up your vehicle as collateral. You can apply for one of these loans online or at a physical location of loan companies that provide small personal loans.
Usually, the loan is for a short amount of time and comes with a high-interest rate. In fact, you’ll often see in the triple digits. You must submit an application for the loan just as you would with any other loan product.
Most of the time, you’ll be asked to provide employment information and other personal details. However, the lender may not actually take the time to verify because they have the title to your vehicle to use as collateral.
If you are approved, the lender keeps the title to your vehicle until the loan is paid off. The amount of the loan you are approved for depends on the value of your vehicle rather than your credit history. Lenders may offer loans from 25% up to 50% of the car’s value. In some cases, they may increase the loan amount even higher. They might also take photos of the vehicle to ensure it is in good condition. You must own your vehicle outright or at least have some equity in it for these lenders to accept your application. The lender often won’t consider a vehicle that already has a lien against it because gaining access to the title is more complicated.
Also Read : https://www.policygenius.com/loans/how-do-car-loans-work/