Car Title Loan Myths Busted: What's True And What's False
There needs to be more clarity around car title loans, as Carolina Title Loans, Inc. knows very well. We’ve gathered some of the most common myths we hear to help people better understand how title loans work.
You can’t take out a loan unless you have a good sense of how it works, and that’s particularly true when it comes to something as important as a loan on your vehicle. Keep reading to learn more about the true and false things people say about getting a car title loan.
The Biggest Myths About Getting A Car Title Loan
1. A Car Title Loan Means Giving Up Your Keys
Some people think that when you take out a car title loan, the lender takes away your keys, and you only get them back when you have repaid the loan in full. That would leave you stranded without a vehicle, unable to get to work, pick up kids and groceries, run errands, etc.
It’s not true at all. When you take out a title loan, you can drive your car usually, as long as you keep up the repayment schedule. You don’t have to hand your keys over when you sign the paperwork, and you don’t have to give up your car.
You can continue to work and run errands as usual. That means that title loans are often seen as a viable option for people who need to keep their vehicle but also want to borrow money against its value.
2. You Can Only Get A Loan If Your Credit Is Great
Many kinds of loans are only available to people with good credit ratings. It can be much harder to borrow money if your credit rating is 600 or below, and you may find that many lenders turn you away.
That’s rarely the case for title loans, however. You may still be subject to a credit check, but the car’s value allows you to borrow money. That means your credit is much less critical than other kinds of loans.
A title loan is a secured loan, meaning you’re offering collateral to the lender. That makes it much easier to borrow money regardless of your credit history. Even if you’ve never done any borrowing before, you may be able to get a title loan.
3. You Can’t Borrow Much With A Car Title Loan
This is simply untrue. The amount you can borrow with a title loan will depend on the vehicle you have and the condition it’s in, but you can often borrow quite a lot of money using this kind of loan.
We offer loans of up to $15,000 for some vehicles. You will need to go through a vehicle inspection, and you aren’t guaranteed to get this much, but it’s not true that car title loans can only provide small amounts of money.
4. You Need Lots Of Information To Get A Loan
Some people think you must have lots of documentation to get this kind of loan, but this is false. All we ask for is the lien-free title to the vehicle, some state-issued identification, and the opportunity to inspect the car.
Note that the ID must be valid and in-date, and the vehicle title must be in your name.
That means you can apply for a loan quickly and easily, with minimal hassle. Compared with a bank loan or many other more complicated forms of borrowing, a car title loan is extremely simple.
How Can You Apply?
If you want to apply for a title loan, all you need to do is:
- Fill in a quick form on our website to pass on your basic details.
- Wait for an agent to call you and run through your paperwork with you. They will then arrange to have a company representative come out and do a vehicle inspection, or you can ask to come into the store if you prefer.
- Meet the representative as planned and get your inspection completed. You will then be told how much you can borrow.
- If you’re happy, sign the paperwork and drive away!
Fill Out Our Online Form Today!
Carolina Title Loans, Inc. can give you more information if you’re still unsure about any of the myths we’ve covered today. Understanding how a car title loan is supposed to work is very important if you’re going to get one.
You will better understand the common myths and why they are untrue. Our helpful agents will be glad to give you the information you need. If you need fast money for an emergency, fill out our online inquiry form today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.