You can get a car pink slip loan if you need money fast. This is a short term loan in which you borrow cash using your car as the collateral. There will be a set interest fee and you need to pay the money back at the end of the loan period. This can take about 48 hours to get the loan. As with many short term loans, these tend to have very high interest rates.
- Submit the Application: There are many lenders that offer car title loans. You can find these companies online or in the phone book. You can fill out the application and send it in online or provide a loan officer your information over the phone. The company will go over your application and let you know the amount of money that is approved.
- Loan Requirements: In order to apply you will need to have documentation that provides your proof of identity and proof or residence. Normally a phone bill in your name will suffice. You will also need to provide some sort of picture ID. Your pink slip cannot have any liens on it, and if you have had a previous loan on the car, it must be paid off. The lender may also require a set of the car keys. You will also need proof of income to show you can pay back the loan at the end of the term and proof of insurance. No credit report is required.
- The Amount of the Loan: Car pink slip loans will typically allow you to borrow up to half of the current value of the car. You will need to ensure your car has enough collateral in order to meet your cash needs. Generally these loans are for less than $1,000.
- Monthly Interest Rates and Repayment: The monthly interest rates are very high and you should expect to pay between $25 to $100 a month depending on how much you borrow. In order to make sure you pay as little fees and interest as possible, you want to pay off the loan within 30 days. If you cannot pay it off at this time, then many times the loan term can be extended. If you cannot pay the loan then the lender will repossesses the car and sell it.
A Few Tips
There are several things you should look into to get the best title loan possible. You need to be careful when getting this loan. Just because you can easily get money, does not mean it is a good idea. If you cannot repay the loan, then it can be very damaging. If you have difficulties paying and keep rolling over the amount each month, the interest rate can be increased. This can make it very difficult to pay off a pink slip loan. You need to make sure you completely understand the terms. Make sure you have a plan for repaying the loan and understand the consequences if you should default on the loan. Consider this type of loan a last option.