It is common for the available amount from a title loan to be 50 percent of the estimated resale price of the car. Some loan companies may even offer a maximum loan amount that is larger than 50 percent of the vehicle’s market value. It should be pointed out that it is vital for a person to completely own the car to qualify for a title loan. What this means is that the vehicle title should indicate the borrower as the sole owner and that there are no liens attached to it. It is also a common requirement that the car’s external appearance should not decrease its selling price and that its engine is in good running condition.

The vehicle title loan company will also want to obtain some identification and proof that the borrower resides in a particular address. Another important requirement is that the borrower should be able to offer proof of dependable income source. Normally, a pay slip or income tax return may be utilized as proofs of income.

After the car title loan company has verified the identity, residency and the presence of a regular income source, it may then release the loan amount in as short a time as 15 minutes. It is advisable for the borrower to check the interest rate that will be applied for the loan because this can have a significant impact on his or her capability to repay the loan. It is therefore prudent to look for the finance company that offers the lowest interest rates in your area.

Do not forget to shop around for companies that have the lowest interest rates and fees. Meanwhile, in the event that the borrower is unable to comply with the payment deadline, some companies may also allow him or her to roll over the loan for another month. However, it is also important to check the interest rate because they usually increase it when you roll over a loan.

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Before we continue, these types of loans are also known by other names. They are also called pink slip loans, title loans, auto title loans and car collateral loans. They are called title loans because the borrower should have clear title (meaning there are no loans against it). Now let’s examine how to get a loan.

These loans are excellent for people with a history of bad credit. The reason for this is that a lender doesn’t pull your credit report or credit score. The lender just needs to see there is value in the car and you have the income to pay off the loan. Even if you have a recently closed bankruptcy, you may qualify for a loan.

Despite the name, car title loans are not just for cars. If you have equity in a boat, motorcycle, pickup truck or SUV, you are eligible for a title loan. A car title loan lender can accept all of those vehicles for a loan.

If your in need of a quick short-term loan, then car title loans may be the way to go. A loan can range from a quick 2 week loan to a loan term of up to 2 years. When shopping for a loan, ask the lender about the length of their loan policy.

There are several variations of car title loans. As stated before, they can range from 14 to 30 days in which you just pay interest. This is called an interest only loan. You just pay interest on it and when the loan is due, you also pay off the principal balance.

Something to check when you get the loan is to see if there are any prepayment penalties. Most states do not allow lenders to charge you a penalty if you pay the loan off early. This is good to know. If you can pay it back early, you will save money on those interest charges.

The lender will then check the value of your car. Based on your monthly income and the cars equity, the lender will figure out the most they can loan you. Most lenders will loan you 50% of the cars value. Check around though. Some lenders will go as high as 66% of the cars value.

Paperwork for a car title loan is minimal. You will have to start out by showing a monthly income. This can be done by showing your 2 latest pay stubs. You will also need to show the car title loan lender a valid drivers license and a paid for car insurance policy. Next you have to show proof of where you live. This can be done by simply showing the lender an electric or cable tv bill with your name and address on it. If you are unemployed or out on disability, you may still get a loan. If you can prove to the lender you have a regular monthly income, you can possibly get the loan. What counts as a regular monthly income? A government check would. If your are receiving a disability or a social security check on a regular basis, this can probably be good enough to get the loan.

There you have a good background on what a car title loan is and how to get one. Your next step now is to go find one.

Getting a pink slip loan is very easy. If you need cash in a hurry, you need to read about loan against car title