Title loans are secured short-term loans that require borrowers to provide an asset, such as a vehicle, as collateral. These loans are relatively easy to secure — they take less than 15 minutes on average to acquire. An individual’s credit rating is normally overlooked when determining who qualifies for a title loan because there is a collateral attached to the loan. This fact, coupled by their favorable application conditions, make title loans immensely popular. You can get title loans from as little as $100 approved within minutes.
Loans are essential for many reasons. For instance, they help to facilitate development projects and to sort out emergency bills. You can get favorable title loans from this revered title loans Fresno firm.
Here are 4 steps to applying for a title loan:
1. Choose an experienced and certified lender
The first step to applying for a title loan involves choosing a lender with eons of valuable experience. Your preferred lender should be licensed by the relevant regulatory bodies. The firm should also have qualified staff who have sufficient know-how on how title loans are issued. Getting the right lender is essential, so ensure you conduct ample research before settling on a particular lending company.
2. Gather all the required documents
When applying for a title loan, there are several requirements you have to meet. For instance, you’re required to provide an array of documents during your application. These documents include:
- Your car title
- Vehicle registration
- Identification card
- Proof of insurance
- Proof of residency (lease agreement, utility bill)
- Proof of income (bank statements, pay stubs)
Before taking out a title loan, ensure you have these documents and present them to your lender during the application date. However, look out for lenders who provide “guaranteed” approvals and very few application requirements — these are usually predators whose aim is to swindle unsuspecting borrowers of their meager funds.
3. Deliver your car for inspection
If you’re applying for a car title loan, you need to showcase your car for inspection. This process is usually swift and could take about five minutes. Most lenders won’t confiscate the vehicle, meaning that you can continue driving it after the loan is approved. However, failure to repay your loan on time comes with adverse repercussions: your car could easily get repossessed and sold in order to repay your outstanding debt. It’s recommended that people borrow responsibly to avoid the possible confiscation of their assets. If you’re dubious about repaying a loan on time, avoid applying for the loan.
4. Wait for the approval process
Title loans get approved within minutes of applying. However, it’s important to study the terms and conditions of your loan before accepting it. Your lender should be compliant with all applicable lending laws. Sadly, some lending companies slap huge interest rates on borrowers, making it agonizingly difficult for them to pay back. It might be a good idea to look around and compare the interest rates charged by different lenders before making your selection. Despite their high interest rates, title loans provide timely financial relief to needy individuals.
Follow these easy steps the next time you’re applying for a title loan.
