Understanding salvage title loans
Title loans are a form of loan arrangement that uses your car title as collateral for a loan. Salvage title loans can be almost impossible in some cases because they belong to a car that has been damaged in a very severe way. Generally a title becomes a salvage title when a car's damages reach 75% of its worth. That's when insurance companies give up on that car and write it off. The question many borrowers have is if you have a salvage title on a damaged car, can you still get a title loan? The bad news is that it might be more difficult. The good news is that it may be entirely possible.
Not everyone writes off these damaged cars, and auto equity title loans companies are one of the institutions that will sometimes give a salvage title a try. If the car is in the process of being rebuilt, or if there is no inspection required on the car, you may be able to get a loan of some size on this type of car, even if it is substantially smaller than a title loan on a healthy car.
The homework it takes to get a salvage title loan can be a bit more time consuming than that done to get a regular car title loan, but there are reputable loan agencies out there that will walk you through the process of financing a salvage car title. Once you've done your homework on the subject matter, the application process for the salvage title becomes a lot easier.
Salvage title loans are a little trickier than regular title loans. They will require a bit more financial muscle to back up the loan. In order to qualify for a title loan using a salvage title you should:
- Make sure you have an extremely good credit score/history. This will help you qualify for one of these loans much easier.
- Find a lender that is at least open to the possibility of giving out this kind of loan. Some lenders simply won't give you a title loan on a salvage title, and that's okay. If you find one lender that won't agree to this arrangement, don't give up hope. There ARE lenders who accept salvage titles.
- Pay close attention to interest rate. While the rates for these loans will be substantially higher due to the high risk nature of lending on a salvage title, they should still be within the range that you will be able to repay under the repayment terms.
Just keep in mind that if you have a salvage title, you're not completely cut out of qualifying for a title loan. There are some lenders that are willing to work with you to make sure that you get the money you need. Salvage title loans will always come with a few more strings attached and may take a bit more time to qualify for, but it's worth it if you're in a real financial bind.
The application process
Some companies target salvage title owners to encourage them to borrow money when needed. Other companies simply offer salvage loans as part of their many other loan menus. It's common sense that if you have a salvage title you're going to get less money than if you had a clear title. This doesn't mean you can't get a loan at all, just that the loan amount is going to be less impressive than it would have been if you had a clear title.
Approval on this type of loan will be quicker than with traditional loans. With a traditional loan, you're looking at an income validation period, more scrutiny of credit history, and a great processing time. Salvage loans stay relatively uncomplicated in comparison to a bank loan. You'll still have your money in a matter of days, and you can spend money from one of these loans on anything your heart desires. Catch up on bills, consolidate debts, or make a car payment on a car you're actually driving. It's up to you. While you're allowed to spend your loan money on anything you want, most people recommend taking out title loans only when there is an emergency need for quick money. The interest rates on these loans are extremely high compared to traditional loans, so take them out for emergencies mostly and prepare to repay quickly.
Why you should apply today
Applying for a title loan on a salvage title is quick and easy. Fill out the make, model, year, and mileage of your car. Give out basic contact information like your name, phone number, and email address, and soon you will be contacted by a loan specialist who will discuss whether or not you want to go forward with your title loan. There are a lot of reasons to go through with the loan.
Why go through with the loan?
- You have an emergency and need money immediately
- You don't want to go through the red tape of a traditional loan
- You are certain you can repay the loan and its interest quickly
That's the short list, but it's an impressive list. With a title loan, you can quickly pay off certain debts and move onto repaying the final title loan. Many people do debt consolidation this way because it's simpler to have one simple loan than 5 different loans to pay on at different times. Other people run late because they live paycheck to paycheck and they might face an eviction or utility cutoff notice. Don't let these things keep you from trying to get your situation under control. It's stressful to have unpaid bills. Sometimes a title loan can be the way out of your temporary situation quick. When the next paycheck comes, you can begin working on your repayment terms.
If you love the sound of getting cash in a day from a salvage title, it's as simple as filling out an online form. A loan specialist will contact you by your preferred method of communication and walk you through the steps of finalizing the loan. Pay close attention to repayment terms on a title loan in Texas. You can only renew the loan 5 times. If you go beyond this, you can lose possession of a car. Even if it's just a salvage title, it can have some value for parts. Don't walk into this loan without being aware of the higher interest rates, the quicker repayment period, or the obligation you have to repay in a maximum amount of time. Your car title is always at stake during your repayment period. If you make sure that you have a realistic budget set for the repayment period, these loans can be a huge help to households that struggle to live paycheck to paycheck.
There's no reason to wait. If you like what you hear about title loans, you can be approved for one today and have your cash by tomorrow.