What Is A Title Loan?
April 20, 2022 | June Mckaig
Title loans have grown in popularity for those looking into obtaining a personal loan. As far as personal loans go, title loans provide quick and easy cash when you are faced with a financial emergency. You may be asking yourself “what is a title loan” and how can it help you?
Title Loans Definition
In short, title loans are short-term, personal loans that use your vehicle title as collateral.
What is Collateral?
Collateral is an asset that you list with a lender to secure a loan. For anyone with poor credit, a secured loan is an option worth considering. Depending on the amount of the title loan, your credit will not play a major role in whether you get approved.
In the case of a car title loan, your vehicle title is used to give the lender assurance that the loan will be paid back.
This means that when you apply for a title loan, you will need to temporarily hand over your vehicle title to the lender. You will still have access and use of your vehicle.
Once you pay the loan back in full and meet the terms of your loan agreement, the lender will release the title back to you. For this reason, you may hear a title loan referred to as a title pawn.
What is a Personal Loan?
One great thing about a title loan is that they fall under the term personal loan. This means that the funds you obtain through a title loan can be used for whatever purpose you require them for.
This is unlike other loans that require the funds to be used for a specific purpose, such as a mortgage. What you use the funds for is solely up to your discretion.
What is a Title Loan Obtained For?
Title loans are obtained by individuals for many reasons. In most cases, title loans are obtained to address unexpected financial obligations.
What kind of unexpected finances? Below are some of the more common reasons someone may opt to get a title loan.
- Home and auto repairs that need immediate attention
- Medical bills such as for emergency room visits
- Unexpected travel costs such as moving costs or important work travel
- Paying rent or utility bills on time
As stated, there are many other financial emergencies that may call for a title loan. With that said, it is important to remember that even though the funds you obtain from a title loan can be used at your discretion, they shouldn’t be used for frivolous purposes.
Does Your Situation Call for a Title Loan?
If you are wondering whether your situation calls for a title loan, you may want to ask yourself the following questions.
- Does your financial emergency require a long-term loan or a short-term financial solution? If you need a long-term solution, a title loan is not ideal.
- Do you need financial help A.S.A.P (within the next day or so)?
- Have you exhausted all other means to raise the needed funds (i.e., have you asked family or friends)?
- Do you own a vehicle that has your name as the sole owner of the vehicle?
- Are you 18 years of age or older to apply?
- Do you have poor credit that prevents you from obtaining more traditional loan types and thus need to look into obtaining secured loans?
These are important questions to ask yourself when considering if a title loan can help alleviate your financial concerns.
What Is A Title Loan I Can Get In Nevada?
If the answers to the questions above have you certain that your situation calls for a title loan, you can apply for a Nevada title loan with Nevada Title and Payday Loans, Inc.
Nevada Title and Payday Loans, Inc.
Nevada Title and Payday Loans, Inc. can help you get a short-term Nevada title loan of up to $15,000.
How Fast Can Nevada Title and Payday Loans, Inc. Help You?
Fast! The entire application process for a Nevada title loan can be completed in a few steps:
- Submit an inquiry online or call their nearest location.
- Speak to a loan representative via phone about how to apply and what is needed.
- Bring the required documents (valid I.D., lien-free vehicle title, the vehicle itself) to the nearest store location.
- Have a loan representative perform a vehicle inspection and verify documents to find out how much you qualify for.
- Finish the application paperwork and find out if you are approved.
You can complete the above process in as little as 30 minutes! The best part? You can get your money as soon as the same day you apply or the following business day!
Submit an Inquiry Today
If you can answer “what is a title loan” and feel it is the loan for you, submit an online inquiry today. Just fill out an online form to have a Nevada Title and Payday Loans, Inc. representative contact you A.S.A.P.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.