Why Getting A Car Title Loan Is A Good Idea

Car title loans are among the safest options when you have to go for a loan while you don’t stand a chance to get loan from other sources. This may be because you have no credit rating at all, or may be because you had a bankruptcy earlier, or also because of a bad credit score. Whatever the problem is, if you know you can be denied loans from multiple sources, then you can always opt for a pink slip loan. A pink slip loan or car title loan is a simple system, where your car is held the collateral and you are approved a loan amount which is slightly lower than the car equity.

How the car equity is determined

The car equity depends on a few factors like the age and condition of the car, the damages incurred to the car through the months of use, the add-on fittings inside the car, the enhancements etc. Sometimes the car itself is not of that great a value but still gets a good equity valuation simply because of the enhancements you had added to the car in the years. Sometimes there are too many damages seen on the body of the car thereby reducing its value. The car photographs initially helps them decide the value, and finally a physical inspection of the car by an expert determines the final value.

How much money you can get as loan

The amount of money you get in loan depends on a few factors in case of car title loans Riverside. They are:

• You must have a minimum income of $1200 per month to qualify for the loan. But then again the more fat your earning is the higher loan amount you can get sanctioned.
• The higher the car equity is the higher your loan amount. There would always be a difference though between the loan amount and the car value, and the amount would be lower than the car value.
• If your car is insured the loan amount would be higher as because no insurance premium would be deducted from the approved loan amount.

Getting approval of a car title loan also involves the following:

• You must furnish proper proof of your income
• You must show details of the car with proper documents
• You must show if the car is insured or not and in case it’s not you are helped in arranging a insurance
• Your government residential ID is a mandate
• You need to give to the loan company 5 names of people you personally know as references

No prepayment penalty

You would love to know that car title loans Riverside do not impose any prepayment penalty on you when you try to close the close before the fixed loan term of 24 months. This means when you have enough money you can close payback all the amount and close the loan without any extra charges being added. That makes a car title loan all the more an attractive instant cash resource in riverside.

Haris is a Digital marketing specialist and part time blogger. And he loves to write about home improvement niches.