Have an emergency cash need and can’t wait for a bank to get back to you to approve your loan? Or maybe you have lousy credit and can’t get a bank loan. Do you own your car with no finance outstanding on it? If you do, you may qualify for a pink slip loan.
How does this work? A pink slip loan is a loan where you use the value of your car as collateral for the loan. A lender will appraise your vehicle and may lend you up with a loan up to half the value of your car. The amount they will lend depends on the Kelly Blue Book value of your car and your ability to pay back the loan based on your monthly income.
Pink slip loans are a way for people to borrow money when they have had past credit problems because the lender won’t bother checking your credit rating when considering whether to lend or not. A title loan lender is willing to loan you money since he has your car as a guarantee of getting his money back if you default on the loan.
These lenders generally don’t care about your past credit history. All that matters to them is what is your car worth and what is your monthly income. They have no need to pull your credit report and to even check your credit scores. As long as the car is in good shape and you have a steady income, you can probably get the loan.
What if you have declared bankruptcy? Even if your bankruptcy is closed, you may still be able to get this loan.
With a pink slip loan, even though you have pledged the car as collateral, you will still have use of your car. No need to pawn the car, you can still use it while the loan is outstanding. The only way you will get into trouble is if you find that you can’t make your repayments on time. Auto title loans lenders are renowned for following up extremely quickly when you get into trouble with these products so its essential you ensure you always have the cash available to pay off the debt in a timely manner.
At the end of 30 days, you will need to pay off the balance and pay all of the accumulated interest on it. Some lenders will let you extend the loan. If they do, you will need to pay up all of the interest for the first 30 days.
When looking for a pink slip loan or auto collateral loan, be sure to shop around for rates and terms. Find the right one and get the money you need today, but only use them if you have nowhere else to turn for financial assistance. The high interest rates and large fees on the auto title loan mean that those that use them end up paying a large premium for their use, and of course, you could end up losing your vehicle.
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It’s really nice if you can keep your car along with your auto title loan. I had also tried for the pink slip loans from City Loan and it was really one of the best ways to deal with emergency money need. I had faced that situation and understand how one feels in such circumstances, you really need someone who can offer you loan or help in minutes. Since then I rely on City Loan, as they always send me cash within one day and sometimes less.