Several factors may lead to applying for a title loan. Your comfort and security can suffer a lot because of financial troubles. It may happen that you need to cover your bills urgently or need extra funds to pay medical expenses. Such situations can cause excessive fears. Finally, your sleep, work and relationships are affected. Don’t settle for this because it will make the level of your stress grow. Better think about applying for a title loan. Check out what is required for a title loan, so you will use the benefits connected with it. However, the process of getting it can be complicated, especially if your credit history is far from perfect. But there are options even for those with bad credit.
How does a Title Loan work?
Your vehicle is used as a collateral when you apply for a title loan. The value of your car is the main factor, which influences the sum of the money you will be able to get. Once the applicant receives guaranteed approval title loan with no car inspection, the lender will give him money and hold onto the title until the moment he repays the loan completely. It is still possible to drive the car during the repayment process.
Pay attention to the fact, that the lender can take back the borrower's automobile to regain the losses. Before applying for this type of loan, make certain you will be able to repay the loan.
What are the requirements for a title loan?
You may wonder what is required to get a title loan. The answer is simple. First thing is that you have to be at least 18 years or older. A government-issued ID is also required. Your auto must be with a lien-free title in your name. And the last but not least, you need a source of steady income. Meeting all of the requirements will guarantee that you will be approved for a car title loan. The application is possible either in person at a local store or online. Usually, you can expect immediate inspection of your car. After estimating the value of the auto, the loan assistant will offer you some option.
What are the reasons to apply for a car title loan?
The process of application is quick and easy
Nowadays it became possible to complete in a few moments in offline store or online with the help of your smartphone. For instance, fast online title loan in NC only ask you to provide personal and financial information, like the car's title, verification of steady income and a government issued ID.
Instant funding
Right after the debtor makes an application, the process is very quick. First step is that your lender will make an examination of your car to find out how much it costs. Second, you get an offer with a sum of money and a percentage of the vehicle's price. If you are satisfied and agree to the offer, you are only left to take the cash you need the same day or within 24 hours.
Bad credit is OK
Usually, title loans don’t have any strict requirements concerning your credit score. Therefore, debtors don't need a good credit score to be qualified for one. Lenders will take into consideration aspects like income, employment history, and their car's value, when deciding whether to approve you or not. The good news is that you can apply even if your credit score is far from perfect.
Considerable Loan amounts
The fact that title loans are protected by the borrower's title, it becomes possible to receive larger loan amount than you would expect with unprotected car title loans. The amount of 25 to 50% of the vehicle's value is usually offered.
Gas Prices Growth
These days it happens that buying cars for the citizens of the USA becomes more and more complicated. Prices won’t stop growing. It is 12.6% price increase for brand-new vehicles and 16.1% for used cars, respectively.
Can Gas Prices Lead to More Title Loans?
Economical experts say that extending rates will beat consumers and the automobile sector in a number of fields, covering Title Loans as well.
When you analyze every hundred points increase in auto loan rates, it's about $15 to $20 on a basis of about $600 on monthly installments.
Therefore, the increasing gas cost influences car title loan popularity. The average price of a gallon of gas now goes up to 5 $. Auto demand strongly suffers because of this this fact. And the problem is that prices are expected to continue growing. American citizens nowadays are paying enormous prices at the gas stations. Since gas is an input price into almost every product and business, everyone suffers from paying more for every service. Therefore, Americans go through hardships nowadays.
Here you can see the diagram showing correlation between growing gas prices and average title loan APRs in 2020-2022.
The research shows that nowadays the growth of popularity of Car Title Loans is expected and the growing Fuel Prices are one of the main reasons why you may need to take a Car Title loan into consideration if you going through financial difficulties.