You can set up a budget and stick to it for many months, but you may suddenly experience a bill that you were not expecting. When this occurs, you might have nowhere to turn to acquire cash to pay this unforeseen bill. Where can you turn at times like these? One option is auto title loans. If you want to borrow money against your car title, you can pursue this type of loan. Before you apply, here are three questions you might have about car title loans.
Can You Keep Your Vehicle?
The first question people often have when pursuing car title loans is if they can keep their cars. If you borrow money against your vehicle, does that mean that you must leave your car with the lender? The answer is no. You do not leave your car there. Instead, you can keep your car and continue using it for your normal daily driving. You get the best of both worlds through an auto title loan, as you get cash for your car but get to keep the vehicle.
Do You Need the Actual Title?
The second thing people wonder is if they need the actual title to get the loan. The answer is yes. If you want to borrow money against your car, you must have the title, and you must bring it to the lender. The lender that issues the loan keeps the title while you have an outstanding loan. They will hold the title until you repay the balance in full. At that point, they will give it back to you. Therefore, they only keep the title temporarily.
How Much Money Will They Give You?
The third thing people wonder is how much money they can borrow against their vehicles. Every lender has different standards with the loans they offer. Some lenders might provide 25% of the car's value, while others might offer up to 50%. In any case, auto title loan lenders appraise vehicles before offering loans. After appraising a car, they will offer an amount to the car owner. The owner can borrow up to the amount they offer or find a different way to borrow money.
Now that you know the answers to these questions, you might want to talk to a car title lender. You can find car title loan lenders in most areas, and you can visit one to request a loan. Contact a car title loan lender for more information.