We’ve already written a blog post comparing our two main services, payday loans and car title loans. Today we want to take a closer look at the second of those and hopefully answer a few questions. Just what exactly is a car title loan, and what is this kind of loan most useful for?
As a small spoiler, we can tell you that car title loans are great for getting cash fast. We wouldn’t offer them otherwise. Let’s look into the details.
What is a car title loan?
Like a payday cash advance, a car title loan is a short-term loan. The way it works is you present your car title to your lender – in this case Carolina Cash Fast – and we put a lien on your title. Your car then serves as collateral until you have paid off the loan.
Let’s unpack that a little bit more. What is…
- A car title? This is the legal document that says you own your car. It’s like writing your name on the collar of your shirt so people know it’s yours, but legally binding. Important note: You won’t be eligible for a car title loan if you are not the sole owner of the vehicle. If it’s a new car that you’re still financing, you’ll have to explore another option for a cash advance.
- A lien? A lien is an agreement. In this case, you agree to forfeit ownership of your car until your loan has been paid back. Once your debt is settled, the lien is removed from your title, and your car is yours again. At Carolina Cash Fast, we will work with you to create a personalized repayment plan so we can make sure your loan is paid off within a timeframe that best serves your interests.
- Collateral? This is the item or property that a lien is placed on. The idea is that to borrow something, you should be willing to give something up in return. We’ll give you a cash advance in exchange for the rights to your car, and then when you pay us back, we return the car title.
What are the advantages of taking out a car title loan?
The big difference between a payday loan and a car title loan is how big of a cash advance you are eligible to receive. When you apply, we consider two things when deciding how much money to lend you:
- The value of your car
- Your ability to make monthly payments
In other words, because you’re putting up your car as collateral, and because your car is a piece of property with high value, you are eligible for a bigger loan. For this reason, car title loans are helpful in situations where your needs are urgent, such as an emergency medical expense. If you don’t think you need that much money, consider a payday loan instead.
Note: You are unlikely to receive an offer for more than half the estimated value of your car, so think about how much you need before applying for a car title loan.
Where can I take out a car title loan near me?
The other advantage of taking out a car title loan is that it’s still super easy when you pay a visit to a Carolina Cash Fast store near you. For residents of the greater Charlotte area, including Fort Mill, Gastonia, and Clover, we offer a hassle free path to a quick cash advance.
If you think you need a car title loan, you can either fill out a form right on our website and wait for one of our staff to call you, or you can visit one of our locations. Let us know how Carolina Cash Fast can help you.