What Role Does My Car Play In A Title Loan?
If you're wondering, "Can I use my car as collateral for a loan in S.C.?" you've come to the right place. An auto money title loan uses your paid-off, lien-free title as collateral, offering you a quick and easy option to get the urgent cash you need to face a financial emergency.
Our helpful guide will cover how title loans in S.C. work and share the steps you can take to get an auto money title loan for yourself.
Can I Use My Car As Collateral For A Loan In S.C.?
Your Paid-Off, Lien-Free Car Title Acts As Collateral
Contrary to popular belief, your paid-off, lien-free car title acts as the collateral for a title loan. Even though your vehicle is an important component in getting a title loan, your paid-off, lien-free title is the most important factor.
Let's break down the process for those who have yet to put up collateral. Collateral is any asset a person owns that is offered to a lender in case that person defaults on their loan. If the person decides to stop paying and defaults, the collateral asset legally belongs to the lender. This is when you hear the term "repossess," which means the lender legally takes and possesses the collateral.
With a title loan, you will use your lien-free title as collateral. This means the vehicle title should have no holds or legal claims against it.
This could sound intimidating but remember – so long as you plan to repay the loan, the collateral will remain yours.
Use Auto Title Loans For Emergencies
Now that we've answered, "Can I use my car as collateral for a loan in S.C.?" Let's discuss when you should consider an auto money title loan as an option.
Carolina Title Loans, Inc. offers an auto money title loan for between $601 and $15,000.
First, we'll consider your financial needs. Many borrowers look for smaller title loans to pay for replacement home appliances (fridge, stove, water heater, etc.), doctor's visits, or overdue utility bills.
Other borrowers need larger loans for significant home repairs, medical bills, emergency travel, and overdue housing bills.
Next, we'll look at your vehicle and how it impacts your borrowing amount.
A Vehicle Inspection Impacts The Loan Amount
In addition to analyzing your specific situation, we'll need to inspect your vehicle to decide your loan amount. Your car's maximum value will be the total value of your auto money title loan. For example, a car worth $8,000 will only qualify you for a title loan of up to $8,000.
When inspecting your vehicle, our loan representative will analyze your car's:
- Noticeable condition (e.g., any damage, accidents, issues, etc.)
Your Car Makes The Process Simple
Some lenders ask for a long list of documents to prove the borrower can repay the loan. This could include asking for a high credit score, looking at employment verification forms, analyzing pay stubs, etc. Banks and credit unions are fond of this paperwork, but Carolina Title Loans, Inc. is not.
Instead, title loans bypass the lengthy and tedious traditional loan application and focus on collateral. We trust that our borrowers will repay the loan as promised with the funds they already possess or plan to receive.
Since a paid-off, lien-free title secures the loan, borrowers with poor credit can pursue this emergency option, too. Even better, you can continue to drive the car as usual--just ensure you stick to the repayment schedule.
How To Start The Auto Money Title Loan Process
If you've answered, "Can I use my car as collateral for a loan in S.C.?" with a strong yes, then you can start the process by filling out our online form.
First, get your documents ready. You'll also need your car to be in good shape and prepared for an inspection.
Next, fill out our online form and wait for us to call you. Discuss your needs with our agent on the phone and arrange a date and time to meet. The agent can come to you, or you can come to our office.
The agent will look over your docs and car at the meeting and determine your loan amount.
Title Loan Requirements
The two documents you need to apply are your car's lien-free title and your driver's license or state I.D. Your I.D. should be up-to-date and reflect the name that appears on the vehicle title.
A lien-free title shows that you are the car's owner, you owe no payments, and it isn't being used as collateral with any other lender. You can get a copy of your title through the DMV.
Get Emergency Cash Today!
So, can I use my car as collateral for a loan in S.C.? Yes. Should you? That's up to you.
After you complete the process, you'll get your auto money title loan amount that day or the following business. That means you can have that emergency bill paid off within 24hrs. Don't spend another restless night worrying about the urgent cash you need. Carolina Title Loans, Inc. is here to help! Reach out to us 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.