We answer some of the biggest questions about auto title loans.
With an auto title loan, you can still drive your car while you are paying back the lender. But, collateral can be dangerous. The risk is that if you can’t pay off your loan, you’ll lose the item used to secure the loan. With a title loan, that means you’d have to give up your car.
You’ll only lose your car if you can’t pay back the loan. If you aren’t careful, though, losing your car will be the least of your problems. You see, some title loan customers borrow more than they can afford to give back. They struggle to make their payments, only paying back the interest. The principle doesn’t go down, and the loan overstays its welcome.
You should be able to avoid this kind of situation if you follow these practices for borrowing and paying back an auto title loan:
- Don’t borrow too much – borrow how much you can afford to pay back quickly. The longer you’re stuck with the loan, the more interest you’ll end up paying.
- Prepare a personal repayment plan that’s maintainable. Be sure you’re paying off as much of the principle as you can with each payment.
- Consider asking for help if tragedy strikes and you can’t pay off the loan. Even missing one payment can seriously impact your credit score and could lead to you losing your car.
If you have any other questions about this type of funding, please feel free to contact us. We would be happy to help you better understand this financial product. Here are some answers to some questions we have heard in the past:
What is a pink slip loan?
A pink slip loan is another name for an auto title loan (or a car title loan). It is a type of funding you receive by putting the title of your car up as collateral.
Can you complete an auto title loan entirely online?
Most lenders will require you to have your car inspected as part of the loan application process. So, it likely won’t be possible for you to complete the entire loan application online.
We are not a lender. We help you try to find a loan provider. Our service is completely free, and you can fill out our form online without needing to go anywhere else.
Can you pawn your car title?
When you request an auto title loan, you are taking the first step toward pawning your car title. If paired with a lender, you will be able to continue the process of getting a loan by using your vehicle as collateral.
Will my car title loan be for the Kelley Blue Book value of my car?
Lenders take several factors into account when determining the dollar amount of your loan. Because of this, loans tend to be for around 50-percent of the value of your automobile.
What if I do not own my vehicle?
It can be difficult to get an auto title loan for a financed vehicle. Most lenders will want you to own your car fully. For this same reason, you probably won’t be able to get a title loan if you’re already paying back a title loan on your vehicle.
What is an auto lien?
An auto lien is a document that allows the person who loaned you money for your car to legally repossess the car if you do not pay back the loan. When you clear the lien, you pay off the loan and regain your claim to your vehicle.
How do I know I’m dealing with a reputable car title loan company?
It can take a lot of time to research and review all the auto title loan companies in your area. We have a suggestion on how to save yourself some time. When you request a loan through our site, we try to pair you with one of the lenders in our network. We trust these companies. So, we did the research and review work for you.
If you did not find your question here, then please reach out to us. We’d love to help.