2 Questions To Ask Before Applying For Your First Auto Title Loan
If you are strapped for cash and are considering applying for a title loan for the first time, you may not have much of an idea as to what applying for one entails. To get you started in gathering information, ask the following questions when you contact a service about applying for your first auto title loan.
1. Will the Loan Service Accept Your Car?
The first question you might want to start with when learning about applying for a title loan is whether or not the service even accepts your vehicle's particular make and model. If they will not accept your vehicle as collateral, then there is little reason to keep asking more questions.
When you call or speak with the service, provide the year, make, and model of your vehicle. While they may accept certain makes and models, there may be a cutoff year that they no longer grant loans because the actual value of the car or truck has depreciated to the point that it would not be in the loan service's interest to take as collateral.
If you were to default on the loan, they would need something that they could repossess and sell to recoup their losses. They may also ask about the vehicle's accident history, as that may affect the value. If they do accept it, be prepared to drive it when you go to apply or finalize the loan, as they will want to see its overall condition.
2. What Paperwork Do You Need for the Application?
After finding out that the service would accept your vehicle, ask about any additional paperwork that will be needed from you to process the application for the loan. Along with pay stubs and checking account information, you may also need to provide additional information about the vehicle itself.
For example, you will need to have the car's title, as well as the current registration, as most services will not accept a vehicle with expired tags. Also, you most likely need to show that you have insurance on the car or truck to ensure that the company's collateral's investment is protected until you pay off the loan.
Once you have basic information about applying for the loan, you may think of other questions to which you need answers before you proceed. Speak with a representative at a company that offers auto title loans services for more information about the process.