A car title loan, such as 800loanmart lending services car title loans, shouldn’t be confused with an auto loan. An auto loan is the loaning of the sum of money required to outright purchase — and thus finance — a new or used vehicle. A car title loan, on the other hand, is a loan of money that is secured by using the title to a vehicle you own as collateral.
Title loans are similar to payday loans and cash advances in that the total sum of money loaned is usually no more than 5000 dollars, but differs in that physical collateral — in this case your vehicle — is required. By securing the loan with your car title, the lender knows that you will satisfy the debt by paying it all back within the repayment period.
In order to quality for a title loan, generally the only thing that is required is that you own the vehicle outright. It’s important that you make the repayment within the specified amount of time; otherwise you run the risk of losing your vehicle.
Car title loans are ideal for short-term, urgent situations that require the quick access to cash in order to take care of — such as an after-hours emergency dental visit, a sick pet that needs to be euthanized, or even a sudden car repair. But always pay back a title loan on time, and in full, or you run the risk of losing your vehicle.