What is a Car Title Loan?

May 20, 2015 / Comments (0)

car title loanAlthough the phrase “car title loan” is probably familiar, you may be less familiar with its meaning. If you’ve never encountered this type of loan in the past, the concept and industry may be fairly mysterious. Whatever your situation – whether you’re actively seeking a loan for immediate use, casually researching the idea for the future, or just curious about how it works – it may be useful to educate yourself about this unique type of loan. Here’s some basic information about the nature, function, and purpose of a car title loan.

The Basics: What Exactly is a Car Title Loan?

There are a number of suppositions surrounding the idea of car title loans, but the concept is actually very straightforward. A car title loan (or “auto title loan”) is a transaction in which an individual offers the title of their vehicle as collateral in order to receive an immediate cash loan based on the value of their car. This does not mean that the individual has sold the car to the lender, only that the value of the vehicle is designated to serve as a guarantee against the amount of the loan. During the course of a car title loan, the owner continues to drive his or her car as usual. Once the loan is repaid in full, the title is returned to the owner.

What is the Purpose of a Car Title Loan?

You may be wondering: what is a car title loan used for? The answer: just about anything. While many types of loans have a specific, designated purpose, this is not true of car title loans. This style of loan awards immediate cash in a single, complete sum, which can be applied toward virtually any purpose. Here are a few reasons a person might choose to utilize a car title loan:

  • A special purchase for which a large amount of immediate cash is required
  • A temporary change in financial circumstances
  • An unexpected, major life event
  • A significant transition, such as a move or a change of career
  • Normal, everyday expenses during a period of financial change

Whatever your situation, we at Cash Plus Lender are committed to getting you the money you need for whatever reason you need it. The awarded cash of a car title loan is to be used exclusively at your discretion, and we’ll never require documentation or verification regarding the use of your loan.

What Type of Person is a Good Candidate for a Car Title Loan?

Anyone who owns his or her car (either fully paid off or nearly paid off) is an excellent candidate for a car title loan. If you’ve had the experience of seeking alternate types of loans in the past, you may associate the process with a nerve-racking gauntlet of complicated forms, requirements, and restrictive qualifications. If you’re wondering what is the benefit of a car title loan, the simplest answer is that it offers the avoidance of all these complex, proscriptive, and confusing strictures.

Because car title loans rely on the value of a vehicle as collateral, they may be a particularly good fit for individuals who have difficulty substantiating an employment history, or who rely on an alternative source of income. Examples include self-employment, irregular income as a result of independent contracting, medical disability, or retirement income. Car title loans can also prove an excellent fit for individuals with poor credit or a limited credit history.

As with any legitimate loan, applicants are required to provide certain basic documentation, such as the following standard items:

  • Proof of residence (this can be substantiated with a recent utility bill, postmarked letters, and standard correspondence received at your home address);
  • Proof of car insurance (although car insurance is necessary for the protection of your vehicle, assistance may be provided by your lending company in meeting this requirement – contact one of our loan agents to learn more);
  • The title to your vehicle (a copy of your vehicle’s registration is also acceptable);
  • Proof of income (can be established by providing your two most recent paystubs, or three consecutive, complete monthly statements for your current bank account); and
  • Valid driver’s license/photo ID (international passports and Marticula ID cards are also considered acceptable forms of identification).

Unlike many lenders, we’re able to provide special assistance and flexibility with regard to document requirements. In answering the question of what is a car title loan, we’re interested in proffering a caliber of ease, transparency, and straightforward service that is not always possible with other types of loans. At Cash Plus Lender, we understand that individuals who require loan assistance are not always able to qualify for loans from traditional lending institutions. That’s why we provide a greater measure of flexibility for our applicants, regardless of their circumstances. For more details or with questions on required documentation, please contact us at 800-717-6869.

How Does It Work?

  1. The first step of the car title loan process is to fill out a basic form with information about your vehicle. Questions include make, model, year, style of vehicle, and estimated mileage. (The online form can be accessed here.) This form also includes only the most basic contact information, so that a qualified loan agent can discreetly contact you to verify your potential loan information. In order to provide a customized experience, the basic form also entails a loan calculator, which enables you to choose the scale and terms of the loan that would be the best fit for you.
  2. The second step is to provide the basic paperwork needed to secure your loan. Again, this may sound daunting, but a friendly loan expert will be able to answer any questions you may have about which documents are required. For your convenience, there are multiple ways to provided the necessary paperwork for a car title loan: Via email:
    1. Simply scan, upload, and email the necessary documents as attachments to contact@cashpluslender.com.
    2. Via fax: All documents can be faxed to 818-920-6755.
    3. In person: Documents may be brought to our office at 16134 Nordhoff Street, Suite B, North Hills, CA 91343.
  3. The third step is to receive the cash value of your loan, in whatever way is most convenient to you. Once you complete your application, and your loan application has been approved (a process typically requiring less than ten minutes), the final step is simply to complete the necessary loan paperwork and underwriting (a process typically requiring less than an hour). Once that step is completed, we can give you your cash as swiftly as you prefer. Most individuals opt for a swift turnaround of less than 48 hours, and – depending on your location – we could have your cash to you in less than an hour. If visiting our office location is not convenient to you, we can send a certified loan agent to complete and deliver your loan in person at almost any location in California.

What Happens Once a Car Title Loan is Repaid?

Upon full repayment of a car title loan, the title is simply returned to the vehicle owner. The timing and location of the title return are arranged to suit the convenience of the vehicle owner.

What is a Car Title Loan Value, and How is It Determined?

The amount of the loan that may be awarded to an applicant is based on a number of factors, mostly pertaining to specific aspects of the titled vehicle. Vehicle factors include the year, make, model, style, condition, and approximate mileage. In contrast to other types of loans, credit history is not regarded as a significant factor in determining the potential awarded value of a car title loan. Depending on the type and status of your vehicle, you may be eligible for up to $50,000 cash. To determine the value of the car title loan you may be eligible to receive with your vehicle, complete a short, no-obligation form for an instant quote by clicking here.

How Secure is a Car Title Loan?

With any variation of loan, the security of your loan is of the utmost importance. At Cash Plus Lender, our primary goal is to make sure you have all the information you need to acquire the loan you want, along with the peace of mind to accompany your decision. We encourage our prospective customers to engage in thorough research, and we pride ourselves on a strong reputation in the industry. In addition to guaranteeing the security of the loans we offer, we are also committed to providing trustworthy, reliable service, the confidentiality of our clients’ private information, and the transparency of our loan terms. For an unsurpassed degree of confidence and assurance, visit Cash Plus Lender of call us at 800-717-6869 for a secure and detailed consultation.

Does It Matter Which Lender I Choose?

It is critical to consider the reputation and experience of the lender. Because the prospect of securing an auto title loan is such an appealing solution, the industry includes a mix of upstanding, reliable companies and significantly less trustworthy lenders. If you’re worried about working with a dishonest or untrustworthy lender, this is a legitimate concern, but don’t worry – it is indeed possible to secure a car title loan without falling prey to unreliable providers.

When you provide your car title as collateral, you need to know that your property will be secure. We understand that the experience of seeking a car title loan may involve a sense of urgency, and it can be tempting to commit to any company providing an attractive offer. We encourage you to conduct your own research, and to reach out to a loan consultant who can provide valuable expertise. Our helpful and knowledgeable customer service representatives are available to answer your questions and address your concerns at 800-717-6869.

What are the Benefits of a Car Title Loan?

When considering which type of loan might be best for you, it’s important to understand the unique benefits of car title loan. Here a few attractive features of selecting a reliable car title loan:

  • Instant cash, available immediately upon approval
  • Flexible repayment options, designed to suit your financial situation
  • The ability to retain your car throughout the course of the loan
  • Guided assistance for the full duration of the car title loan process

How Can I Learn More?

At Cash Plus Lender, we’re committed to providing a high standard of information to our customers. We want to ensure that you’re able to get the right loan at the right rate in order to meet your needs, not just immediately but also for your future satisfaction with the terms of your loan. We understand that there’s a lot of information out there, and it can be challenging to navigate.

If you have questions, we’re here to help. Give us a call anytime at 800-717-6869, or feel free to reach us via email at contact@cashpluslender.com. If you would like to consult with a loan agent in person, we welcome to visit our office at 16134 Nordhoff Street, Suite B, North Hills, CA 91343.

We’re excited that you’re interested about the possibility of seeking a car title loan, and want to make this process as easy, stress-free, and accommodating as possible, whatever your circumstances. We look forward to hearing from you.