Outlining the Car Title Loan Process

A car title loan could potentially provide you with a source of emergency cash if you need it. Here are the basics of the car title loan process and what you should expect from it.


The application process for a car title loan is typically very simple. You will have to locate a car title lender and then ask to apply for a loan. During the process, you will have to provide basic information about yourself and your car. They will ask you for information such as your name, address, phone number and an alternate means of contact for you. They will also ask you specific information about your car, such as the make, model and mileage. During the application process, you will need to be able to show them the title to your car. You have to own the car outright without any liens against it in order to qualify. The lending company will then want to take a look at your car and evaluate its condition. As long as everything looks good with the car and the title, they should be able to approve you for the loan. These loans are not dependent on your credit but depend greatly on the condition of the vehicle. Once you are approved for the loan, you will have to leave your car title with the lender. In many cases, you will be able to keep your car and drive it during the loan. However, the title will have to stay in the possession of the lender during this time.


Once the lender agrees to lend you the money, they will go over the terms of the loan with you. The interest rate is going to be extremely high for this type of loan. In many cases, it works out to over 300 percent APR. They will outline any fees that will be charged over the course of the loan. These fees might include an application fee, processing fee and late fees. You will have to sign off on these terms in order to be approved for the loan.

Money Distribution

Once you are approved for the loan, they will distribute your money quickly. In most cases, they will ask for your banking information. They will then transfer the money directly into your bank account. Many times this will happen on the same day that you fill out your application. It is common for the money to be distributed within four hours of approval.


In most cases, you are going to have approximately 30 days to repay the loan. If you can pay off the entire loan amount including the interest, you will be able to receive your title back from the company with no issues. However, if you cannot repay the loan in time, you will have to pay late fees. If you continue to avoid paying back the loan, they will come and repossess your car. They will then sell the car in order to repay the debt.

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