The first step toward choosing the right loan is learning exactly what a title loan is. Title loans work by using a borrower’s car as collateral for funding, agreeing that the proceeds will be paid back within a certain time. In essence, your car will be the insurance for lenders if you miss your monthly payments.\u00a0<\/span><\/p>\n

You essentially borrow money from your car’s equity with a title loan. That’s because title loan lenders determine your car’s value and equity when deciding how much financing to give. The great news about this type of agreement is that you don’t need perfect credit to qualify! While this may be considered, what matters more is your car’s equity and showing proof of a steady income.<\/span><\/p>\n

If approved for title loan funding, the lender will place a lien on your vehicle during the repayment period. The lender may repossess your car if you don’t pay back the funding. However, this is typically the last resort that anyone wants to take! If you’re struggling to make payments, reach out as soon as possible to discuss alternative options.<\/span><\/p>\n