How Does A Title Loan Work Exactly?
March 2, 2021 | Emma Frost
2020 was a difficult year for all of us. Even if you were a diligent worker and avoided paycheck to paycheck lifestyle – chances are your income has shrunk and your savings have been depleted during the pandemic.
So when faced with insurmountable expenses, it’s not surprising that you’ve started thinking about applying for an online title loan. This is a loan you receive when you use your car’s title as collateral. It helps you when you are dealt with an emergency that you cannot handle on your own.
Look To Title Loans When You Need Emergency Quick Cash
But, if you’re a first-time borrower, there are some things you need to know first. How does a title loan work? When should you apply for one? And what will it take to get approved? Here is all the information you need, so no matter if you are a beginner or not, you will know everything there is to know about our car title loans.
How Does A Title Loan Work?
Unlike most loans that traditional institutions offer – title loans are simple, straightforward, and, most importantly, fast.
The first thing to touch upon when discussing how does a title loan work is the application process. Unlike, say, a bank, you won’t need to provide a long list of documents just to become eligible.
The items you’ll need to get through the process are:
- Your car, truck, or SUV;
- Your vehicle’s title must be in your name and completely lien-free;
- Your driver’s license or government-issued ID.
In other words, any car owner who’s over 18 years old and has a lien-free title can apply. And the good thing is, finding out how much you qualify for is free, so you can come down and find out whenever you need to.
How Does A Title Loan Work For First-Time Borrowers?
Title loan application requirements are the same for everyone – it doesn’t matter if it’s the first title loan you’re applying for or the 10th. The requirements won’t change.
In fact, it doesn’t even matter if you have a good track record and could be considered a trustworthy borrower since we won’t prevent you from applying if your credit history is in the red.
How does a title loan work with no credit history? Easily. You work with the loan representative from the store and they make the decision based on the documents you provide them. As long as you can prove that you’re:
- A legal adult (provide them with your government-issued valid ID);
- A car owner (provide them with your car for inspection, as well as the lien-free title of that car in your name);
- Able to pay the loan off (any kind of income will work – you don’t even need to be necessarily employed full-time);
Your credit score won’t be influencing your approval chances. You’re eligible even if your credit is bad or nonexistent altogether.
Additionally, we will not provide information to credit bureaus if you default on your loan payments. It’s just between you and us; so if you’re worried that title loans might influence your existing credit scores, you can stop. They will have no impact on your credit – either negative or positive.
How Does A Title Loan Work For Emergencies?
If you’ve decided to apply for a title loan because you need money fast and are seeking to have the process expedited, well, you don’t need to try in the first place. We make sure our process is anything but lengthy.
What makes title loans such an optimal option in emergencies is that when we say they’re fast, we mean it!
The entire application process typically takes less than an hour – in as little as 30 minutes, to be exact. You start the application procedure online by filling out the form you’ll find on the website – and the loan representative will take over from there.
They will provide the information about the process, set up a meeting at a convenient location, inspect your car and documents, and decide if you qualify for approval.
If you do get approved, you will get the cash either the same day you are approved or on the next bank business day at the latest.
When Should I Apply For A Title Loan?
As with any debt – you should only take out a title loan if you’ve already exhausted all other options and still cannot deal with the problem you’re facing.
Often a title loan is used to handle time-sensitive problems. Problems that you try postponing on the off chance of getting the cash together without going into debt. But postponing these problems would only exacerbate them, likely making it more expensive to deal with in the future.
Things like unplanned doctor’s appointments, vet bills, home repairs, car maintenance, are all valid reasons to get a title loan.
How Do I Apply For A Title Loan?
Applying for a loan at Fast Auto Loans is so simple that you can easily start the application process without having to leave the comfort of your own home. All you need to do is get your phone or laptop and go to the website:
- Find the application form, fill it out, and send it in.
- A title loan representative from the nearest location will process your online form and get in touch with you to set up a meeting. You can either have the meeting at a location of your choosing and have them come to you, or at the nearest Fast Auto Loans in Arizona. Have your phone nearby not to miss their call – it should take only a few minutes.
- Bring the required items – your car, your lien-free car title, your government-issued ID – to the meeting.
- Let the loan representative inspect the car and assess documents to determine if you qualify for the loan.
- If the loan representative approves you, you’ll get the cash either the same day or the next bank business day.
When it comes to title loans, it is important to know exactly how they work. Hopefully, with this guide, you will have all the information you need to get started on our online form! And if you still have lingering questions, don’t hesitate to get in contact with us.