Before you take the plunge and apply for a pink slip loan you first need to know what a title loan is. Most people know that with a car title loan, you use the equity from a vehicle to secure collateral for a loan. Can you apply for and be approved for a typical bank or installment loan? Do you have enough equity in your vehicle? Is your car completely paid off with a free and clear pink slip? Those questions are all very important when determining if online title loans are suitable for you.
Once you decide to use a car as collateral for a secured loan, choosing among different options is essential. Use our database to compare nearly a hundred car title loans completely online to find out your financing options. They even understand how payday loans and other types of short-term funding work. Vehicle equity loans function in the same way except for one important distinction. With this type of financing, the borrower will give up his pink slip as collateral. This means the borrower needs to pay his monthly payment on time to stay current on the payments. Any slip-up with payments on your loan and you risk losing your vehicle to the lender!
Pink Slip Title Loans – What’s Required
Your typical vehicle title loan is set up to be short-term in nature. They’re a quick and convenient way for those who own their car or motorcycle to get cash. According to most online definitions, the borrower must let the lender place a lien on their pink slip for collateral. A lender will take physical possession of the actual title before the borrower gets cash.
Take note there will be a different process for title loans with a salvage car title. Cash advance funding is almost always seen as temporary but it can last for months. Some finance options can last for years if the amount of borrowed money is significant. With most online title loans you will agree to the terms before any money changes hands. There are different options for those urgently needing this form of funding. Some schools of thought will recommend a bank or payday loan. The problem is that most payday loan companies require good to excellent credit for a loan.
Can I apply for a pink slip car loan with bad credit?
If a borrower wants a pink slip loan with no collateral, they must show excellent credit history with no recent defaults. Secured loans we see today are regulated by a state agency and you can control the interest rate. The same is true for vehicle equity lenders. The process is similar to your local lender that funds car title loans. These companies are held to strict state regulations that govern the lending industry.
As with all types of pink slip car loans, it’s important to understand the legal agreement and terms of the contract. While we’re not all legal experts, we must understand the online process to be comfortable with the terms. Turn to a local law firm or legal aid company, or seek help online to understand your loan contract better.
Read the title loan contract before you get a pink slip loan!
With most common bank loans or insurance policies, you must expect the underwriter to check a credit report. The score and report will determine the exact rates and cash available from the pink slip loan. It’s often not the same with companies, especially title loan lenders in large cities like Atlanta and Phoenix. You’re not using a vehicle as collateral with payday loans and cash advances. With equity lending, most borrowers should expect the lender to care more about the vehicle’s value. It’s important that you can pay back the financing. When someone borrows money from the vehicle equity, they tell the lender to repossess the car if the loan payments fall behind.
What Happens After I Get A Pink Slip Auto Title Loan
After the lender takes possession of the car’s title, you’ll be given cash on hand equal to half your vehicle’s value. For pawn services, a car will need to be seen in person. After you’ve made all monthly payments, you can retain possession of the pink slip. The average loan is an easy process to cash out equity from a vehicle. But as with most pink slip title loans, there are plenty of other ways to get fast cash.
