The Beginner’s Glossary Of Car Title Loan Terms And Definitions
If you’re just starting to learn about a car title loan, then there are probably a lot of terms you’ve never heard before. There’s a lot to understand when you’re getting a title loan for the first time, and understanding title loan definition terms can be useful so that you don’t go in blind. Don’t let unfamiliar words scare you off; because understanding this loan isn’t difficult. Read this article to learn the most important terms that will help you understand how title loans work and how to get one.
Learn These Car Title Loan Terms Before You Apply
Title Loan
A title loan is a secured loan that uses your vehicle’s lien-free title as collateral. Your car’s title serves as the security for us at Wisconsin Auto Title Loans, Inc. offering the loan, and we, in turn, give you money to use for emergencies – if you are approved, of course. If all of this seems a little confusing to you, then don’t worry! The expert representatives at Wisconsin Auto Title Loans, Inc. are well-equipped to answer any questions and concerns that you may have.
Required Items
Now that you know the title loan definition, the next term you’ll hear when it comes to a car title loan is the required items. These are the items we use to determine whether or not you qualify for approval and how much we can lend you if you do qualify. The beneficial thing here is we don’t make you bring in a lot of items to get through our process. In fact, you only need to bring in the following items:
- Your driver’s license or state-issued photo ID.
- The lien-free vehicle title in your name.
- Your vehicle to match the title for the inspection.
Credit History
Credit history is a measure of how reliably you pay off your debts. For most types of bank loans, your credit history will play into how much you are eligible for or if you even get approved. Better credit histories signify trustworthiness to a lender and make you a more suitable candidate to get a loan, while poor credit can be seen by a bank as some sort of red flag that an individual isn’t trustworthy.
With that being said, there are some exceptions. When it comes to us in Wisconsin Auto Title Loans, Inc., we will still consider you even if you have poor credit. This means that where a bank might automatically disqualify you, we will still allow you to apply and we will still take your items into consideration. Do keep in mind that there is always a chance we will have to run a credit check, you just don’t have to let your poor credit keep you from applying with us.
Collateral
The next term you’ll need to be familiar with when it comes to a car title loan is collateral. If you’ve never dealt with secured loans before, collateral just means you are putting up a personal item to secure the money. This is what makes a loan secure. When a loan doesn’t call for collateral, it is considered an unsecured loan. For this loan with us, we are using the vehicle’s lien-free title as collateral.
There are a few things to keep in mind when it comes to this collateral. We call this a title loan because we are just interested in the title. This means that if you are approved for the loan, you won’t have to give up your vehicle and leave it with us. We are not holding onto your vehicle while you repay the loan. Instead, we will place a lien on your title and hold onto it until you repay. Once you’ve repaid, we will remove the lien and safely return your title to you.
Lien-Free
You’ll need to have a number of items to get a title loan, one of which, of course, is your car title. And when we say car title, we don’t just mean any car title will do. The car title you are using must be completely lien-free, which simply means that there are no outstanding judgments or debts against your car’s title. If you aren’t finished paying off your vehicle and there is an outstanding lien on your title, then you won’t be able to get a title loan with us.
Clear up your debts and make sure your car title is lien-free at the DMV before you try to get a title loan with us. You’ll also have to make sure that your car title is listed in your name. We can’t accept the title if your name doesn’t appear anywhere on it to prove that you are the owner of the vehicle. If it doesn’t have your name, you’ll also need to have it changed at the DMV before you come see us for the loan.
Title Loan Process
The last term you should get familiar with is title loan process. This term means exactly what you think it means, the actual process you’ll go through to find out if you can get a title loan. And we here at Wisconsin Auto Title Loans, Inc. have made sure to make it simple and quick to get through. To get started, go to our website and fill out the online form on our homepage. This will send the nearest WI title loan location your contact information.
You will then receive a phone call from one of our representatives who’ll go through the process with you, answer your questions, and set up an appointment for you to either come to the store or have them meet you somewhere else. Regardless of where you meet, you’ll bring in your required items so we can inspect your vehicle and decide if you qualify. If you do, you’ll get the money on the same day or the next.
Get Started Online Today
There are a number of terms associated with a car title loan that can be confusing, but now that you understand the title loan definition, you’re all set to apply confidently when you need emergency cash. If you’re struggling to handle major bills or repairs, consider using the value of your car title to secure a title loan and get up to $15,000. When you understand the terms better, go to our website and fill out the online form to begin.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.