What Are Secured Title Loans?
When it comes to borrowing options, secured title loans are often overlooked or dismissed when, in reality, they can be useful when used properly. Here’s how they work and why you might want to get one through us at Carolina Title Loans, Inc. quickly.
Secured title loans use your vehicle title as collateral, allowing you to take out a loan even if your credit is fair or bad. They usually allow you to borrow more money than a personal loan, giving your finances flexibility to cover your urgent expenses during financial emergencies.
Now that you understand the basics, let’s take a closer look at how secured title loans work so that you know when they can best be used for your situation.
How Do Secured Title Loans Work?
Secured title loans operate on a very simple principle: collateral. Using collateral incentivizes the borrower to repay the loan, which ensures that the lender gets a return on their investment. As such, borrowers are usually better positioned to get secured loans, assuming they own the assets outright.
A secured title loan, as the name suggests, is simple a loan secured by your car title, the deed of ownership to your vehicle. Regardless of the type of vehicle you have, if you own the title outright, you can likely take out a secured title loan. The process usually works as follows:
- You fill out the online form for a loan.
- The lender places a lien against your vehicle title. In exchange, you receive a lump sum of money proportional to the car's value.
- You start making monthly payments towards the principal you borrowed, plus interest and fees.
- Once repaid, the lien is removed and the vehicle is fully yours once more.
Who Can Get Secured Title Loans?
Anyone who owns their vehicle outright is eligible to at least apply for secured title loans. That’s because good credit isn’t required, since the security in the car title does all of the talking.
To check for liens on your vehicle, review your paper or electronic title. Either will list a lienholder if applicable (that could be a dealership, tow truck company, or other entity). To remove the lien, you will need to pay the appropriate party what they are owed and ask them to remove the lien.
A dealership, for example, may place a lien against your vehicle while you are making payments on it. As such, you can’t use your vehicle for a title loan if you’re still making payments on it.
The Requirements For A Title Loan
Getting a title loan is simple through Carolina Title Loans, Inc., and our requirements are equally easy to understand. You will need the following:
- Your driver’s license or state-issued ID – A passport, non-driver’s license, military ID, or student ID are also accepted.
- Your lien-free car title – Clear liens with your lienholder before you apply to avoid getting turned down immediately.
- Your car itself – All title loan lenders require an in-person inspection of the vehicle being put up as collateral, so make sure to bring it to the meeting.
How Do Secured Title Loans Compare With Other Loans?
Title loans are different from personal loans in several ways. If you don’t own your vehicle outright, then you won’t be able to take out a title loan, and a personal loan might be a better option for you. However, if your credit is fair or bad, then bank lenders might not be willing to take you on with a personal loan.
If this is the case, a title loan through a direct lender might be a better option. Title loans can help you to borrow more money than personal loans in most cases, although the exact amount will be determined by an in-person inspection of your vehicle.
Ready to get started on your title loan? Here’s what you need to do:
- Fill out the quick request form on our website, and a representative will call you back shortly.
- Schedule a meeting with the associate at a location you choose or at one of our convenient storefronts.
- Attend the meeting with your required items and follow through with any paperwork the loan representative provides.
- If approved, leave with your car and arrange to receive your cash the same day or the following business day.
Apply For Your Loan Today!
Secured title loans through Carolina Title Loans, Inc. can help you out when you need urgent cash sooner rather than later. Secured title loans can be used for urgent home repairs, medical bills, rent, utilities, and more!
If you use it sensibly, a title loan can be a viable short-term stopgap while you focus on your long-term financial goals, as well as simplifying repayment. If you’re ready to get started, fill out our online 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.