You’re in need of some quick money, but what happens if a bad credit score is stopping you from being able to access traditional lines of credit or short-term loans? A car title loan is one way that you can easily and quickly get your hands on some cash, with minimal income verification and no credit check.
In some states, this is known as a title pawn, and are very common, with many people taking advantage of the fact that you don’t need a credit check in order to get the loan.
So how do they work? If you were planning to take some jewellery or maybe some of your other valuables to a pawn shop, the employee working behind the counter would take a good look at your items and appraise them. They would then give you the loan based on what they believe your items are worth. The pawn shop would lend you the money and charge you interest on the loan, and if the money isn’t paid back within an agreed time-frame, your items would belong to the pawn shop.
A title loan works in a similar way. The lending company will look at wholesale values and evaluate the price of your car, and will then give you a loan based on its perceived value. That company will then hold onto the title for your car until you’ve repaid the loan, and if you fail to pay back the money within the agreed time frame (don’t forget about the interest), that company will now own your car.
If you live in Dallas, it’s a good idea to become familiar with title loan law in Texas. This reduces the chance of you getting treated unfairly or cheated by a lender, since you’ll know your rights and responsibilities. Then, begin looking into a few different lenders so you can find the best one for you. Many will offer free quotes so you can get an idea of how much you could get from each lender, and you can also compare the interest rates and loan amounts so you can choose the best deal. Be sure to check if the lender is licensed for Texas as well.
Once you’ve decided that this is what you’d like to do, you’ll need to ensure that you have all of your documentation ready before visiting the lender. This includes a piece of official identification like a passport or driver’s license, your social security number, proof or residency, the title for your vehicle, your vehicle’s registration, and some references.
If you’d like to speed this process up a little and make it a little easier, consider applying for a loan online. You’ll need the same documentation, but can apply (or at least get the first steps completed) from the comfort of your own home. This is a particularly good idea if you’re planning to compare a few different options.