You never know when an unexpected bill makes you seek an emergency car title loan Sacramento. It’s time to explore 5 facts you should know about car title loans.
Your Car Value Matters the Most
Do you own a car? If the answer is yes, then having your hand on a car title loan won’t be hard. It’s because your loan is dependent mainly on your car value. You can address any emergency cash needs with it. As far as interest rates are concerned, they depend on the amount you are going to borrow, the state where you are locating, and a loan provider.
You Can Tap on Your Car Equity
Like a home equity loan, where you make the most from your equity value, you can also tap on your car equity. Equity is the amount you owed on your car financing deal minus the market value of your car. When you have car equity, then it means your car’s title is on hold by the bank. However, many lenders offer you a chance to borrow some money based on some percentage of equity. In typical cases, you can borrow 70 percent of equity car value.
You Can Get Loan with Weak Financial Profile
People with weak financial profiles or naturally low credit scores can find Car Title Loan Sacramento a simple, economical solution. The lender isn’t concerned with your bad credit or low credit situation because this problem offsets through collateral. He uses your car title as collateral, so even when you don’t pay him back, he can sell your car after warning you.
You Can Apply in Store and Online
These days, every lender is trying to facilitate its customers. When it comes to applying for a car title loan, you can go with either store and online option. If you go to a store, then you need to make sure that all your documents are prepared. You need to furnish the following documents: original car title, insurance proof, income proof, and government-issued ID card. An essential step of your car title loan application is the inspection of your vehicle. Frequently, an independent car dealer will check your car condition and ascertain its market value. The lender will grant you a loan based on that value. Generally, you can expect to get 25-50 percent of car value in the form of a loan.
As far as the online application is concerned, you will fill out an online car title loan in Sacramento form and then attach all the documents required. Scanned copies of documents in PDF format are usually required. Some lenders don’t want you to send your car for inspection. Instead, they demand photographs of your vehicle.
You are Free to Drive Your Car
Many people mix up car title loans with pawning. They think that if they get a loan against their car’s title, then they won’t get to keep their cars. It’s not true. You can not only keep the car but drive it with confidence. The lender won’t hold it.