You can borrow $5000 against your car title at both banks and credit unions as well as smaller lenders specializing in car title loans around the neighborhood. These unique loans allow you to borrow money with easy credit requirements or income verification since you put down your car title as collateral. If you cannot pay back the loan by the stipulated due date, they can legally repossess your vehicle thus these car title loans pose very low risks for the lenders. If you pay back on time, you will get back your car title so many people usually time it such that the payment date is after they receive their next paycheck. When you need to borrow money urgently, you can get an easy loan against car titles for bad credit with higher success.
Note that cash loans against car titles are usually meant for short term borrowing and you should try to pay back within 90 days maximum. Typically, these are like a payday cash advance and many car owners redeem their car titles within two weeks to four weeks. The maximum amount you can get against online car title loans depends on the current market value of your vehicle pledged, and is generally 20 to 50% depending on the lender.
For example, if your car is worth $10,000, one lender may allow you to borrow $2,000 and pay back within 30 days while another company may agree to lend up to $5,000 for 90 days against your car title but at a higher interest rate. Hence, there is a need to plan carefully how much money you need, how long you take to pay back etc before you start comparing loan quotes from several car title lenders.
The average car title loan rate depends on which state you live in. Some U.S. states have rules and regulations to protect borrowers and set a maximum interest rate limit that can be charged by lenders. Interestingly, it is also more difficult to get a fast car title loan in these places. Otherwise, you typically need to pay $20 to $25 for every $100 borrowed against a car title for 30 days.
You may lament about the higher APR charged on these easy car title loans despite these being secured loans. The fact is that cars depreciate very fast and there are various costs involved in repossessing and liquidating vehicles when borrowers default.
Fast car title loans are not popular previously when it is relatively easy to borrow a large cash loan with bad credit and unsecured. However, with the credit crunch, some people find it difficult to borrow 5000 installment loans without collateral or a good FICO score.
Despite being a type of secured lending, personal loans for car titles can be processed relatively fast within an hour. You just need to bring your car title and a set of spare keys over to the credit union. There is lesser paperwork involved and you can even get a loan while unemployed at the moment.
When the loan deadline is near but you do not have sufficient funds to repay, you should immediately contact your car title loan company and ask for an extension. Usually you can get another month of time, subject to some processing fees.
If you do not do this, many lenders will simply charge a late payment fee, double your interest rates, file a report at the credit agencies etc making it very difficult for you to pay off the loan and get back your car title. Note that when the agencies are notified, your credit score will be damaged and this may affect all your current loans.
If you have good credit but jobless, most payday loan companies will not offer you an unsecured cash advance since your next pay check is uncertain. You can choose to pawn your car or truck in this case because the provision of collateral allows the lender to overlook your lack of full time employment.
Note that you only need to leave your car title at the lender’s premise and you can still continue to use the vehicle until it is repossessed in the worst case scenario. This is to prevent some borrowers from selling off their pawned vehicles without a title.
For many people, easy car title loans with no hidden fees provide a fast solution to monetary problems. As long as you have at least 75% equity in your vehicle and the car title is clear, you will be able to borrow $5000 from most car title lenders. The higher your car equity, and the newer it is, the more likely you get accepted at any car title lenders.