No Equity And No Credit Checks: What To Expect When You Ask For A Car Title Loan

When you need a little extra dough, trying to get a loan is harder than ever. Because of the federal crackdown on banks, banking practices and loans, credit checks and equity are a requirement before you can access any cash via the usual routes. This means either you need near-perfect credit, or you need something with a lot of equity. To circumvent these financial sticking points when you do not own a house, a boat or other recreational vehicles, you can get a car title loan. Here is what you need to know.

Verifying the Age of the Car

With the exception of antique and collector's vehicles, your older model car will only help you get a loan for a percentage of what your car is worth. Most title loan lenders see your vehicle as an opportunity for investment and resale. That means that a much older model of car (that is not an antique) may not yield much money if the lender has to repossess and sell it. The title loan you take out comes with this string attached in the hopes that you will be properly motivated to pay off your loan on time. People who do not repay their loans may have a redemption period, but some other title loan lenders will just take the car and sell it if it is worth a lot more than the loan.

Providing an Extra Key

Many car title loan lenders will ask for a duplicate set of keys to your vehicle. Be sure to bring an extra set of keys with you when you apply for the loan. The extra set of keys allows the lender to have access to your vehicle and repossess it should you avoid making timely payments. The extra set of keys also serves as a reminder that you need to pay the debt to get the keys back.

Agreeing to a Lien on Your Vehicle

Your car acts as collateral for the loan amount you are offered. If you take all or part of the loan offered to you, the lender places a lien on your title, which states that the car is technically sold to the lender for the loan amount until the loan is paid in full. These terms are what allow you to take out a loan for extra cash without equity or credit checks. If you are content with these terms, you can sign on the dotted line and receive a check to take to the bank. Some lenders offer cash, but only if it is under a certain dollar amount and only if they have that much cash in their safe or cash drawer at the time the loan agreement is signed. To find out more, contact a business like DRIVEiT Title Loans.