Requirements You Have to Meet for Auto Title Loan Approval
Have you exhausted all your sources or need some quick cash? There are many alternative solutions other than acquiring a bank loan. However, in today’s day and age, bank loans have become an individual’s last resort, thanks to title loans.
A car title loan is a temporary loan in which your car is used as a security against the debt. Generally, borrowers are consumers who do not want to choose other financing options, such as a bank loan.
Not only are these loans easy to obtain, they also guarantee a more flexible interest rate to make the entire borrowing experience is hassle-free.
What Borrowers must know?
Are you looking for an auto title loan? In order to qualify for a car title loan, you need to own a vehicle and possess a lien-free title. People are happy to know that a good credit score is not is not a deciding factor here when it comes to qualifying for an auto title loan, especially if you live in the Bay Area including San Jose, Ca.
Prior to applying for an auto title loan, it is important that you get to know all the basics and requirements of getting an auto title loan. The borrower must know how the lender plans the repayment schedule, either from his paycheck or via direct payment.
In addition to this, the borrower also needs to know how long will the title loan last. A longer repayment period means lower monthly payments. However, it is best to pay as much as you can every month so that you can reap the maximum benefits of an auto title loan.
There are many online title loan lenders that work by a simple application process that is completed online. However, other lenders may require you to contact them via phone, for further verification.
What are the Requirements?
If you want to get your auto title loan approved, the borrower needs to bring the vehicle with the required paperwork to the lender. Prior to lending the funds, the lender will verify the condition of your vehicle and check the paperwork. The lending service then keeps the title to the vehicle and places a lien on it. Finally, the lending service hands out the amount to the applicant.
Generally, the loan limit is 25-50% of a vehicle’s cash value. You will repay the plan along with the interest and fees within a fixed period of time that is allowed to reclaim the title. This time-frame usually lasts for 30 days.
You must own the vehicle outright and there should no liens against the title.
The borrower must submit all these documents to complete the paperwork that the lender requires. Failure to do so may result in the rejection of your auto title loan.
- Original vehicle title
- Authorized identification that matches with the title’s name
- Residency proof such as a utility bill that matches with the title
- Vehicle registration
- Proof of ability to reimburse the loan, such as previous paychecks
- Proof of vehicle insurance
- Address, Names and Phone numbers of two or more valid references
- Copies of the car’s keys
A few lenders may require a GPS tracking device that gets attached to the vehicle. In case, somebody becomes a defaulter, the lender has the right to reclaim the car. A few of such devices are also designed in a way that the lender can immobilize the car remotely.
One of the best things about getting an auto title loan is that you are not required to possess a good credit history to qualify for a title loan. Most lending services don’t even ask any questions about your credit. Since the money they are lending to you is dependent on the resale value of your vehicle; you are not required to show your credit history to the lender. Moreover, there is no obligation that you must be employed for receiving a title loan.
All individuals who are 18 or older and own a lien-free car title with their own name on it are eligible to apply for a loan online via an application form. Once your application is reviewed, you will be required to visit a branch office to complete the visual inspection of your car. You will receive the loan money according to the value and condition of your vehicle. There are a few lending services that offer an overview of the worth of many types of vehicles on their website.
This will give you a better idea to assess the amount of money you can expect out of an auto title loan. In case you are not employed, you have to give proof of a reliable source of income including unemployment, disability and retirement income.
You should also inquire if a lending service charges a pre-payment penalty. This means, that a few lenders will penalize borrowers if they pay back a loan way before the allotted timed-frame.
When you submit all the required paperwork to the lending service, and after they have methodically evaluated the condition/value of your car; you are successfully granted an auto title loan. Borrowers don’t have to worry about gouging interest rates that are unavoidable when applying for a bank loan.
A few lenders do not accept cars that were manufactured before the year 2000. However, some services accept cars that even date back to 1995.
If you want to know more about car title loans in San Jose, you should know that this is one of the best ways to get fast and easy cash without huge interest rates. Since these types of lenders do not keep your car as a security, but only retain the title of your vehicle; you continue to use your vehicle.
Once a borrower repays the loan, the title loan company returns all title documents. Without a doubt, this is a safe and convenient method to obtain a loan without losing your vehicle.
As a borrower, you should know that customers must have the ability to sue a title lending institution and cancel all agreements if any legislative violation is observed.