These loans are generally short term loans and can carry a higher interest rate than other types of loans. The reason is because since you are using your car as collateral for the loan, some lenders do not need to do a credit check on you. As long as you hold a clear title to your car (or truck or SUV) and the wholesale value is at least $4,000, you should be able to get a loan.

One of the many benefits of a title loan is that while you have pledged the car as collateral for the loan, you are allowed to still keep the car and use it while making payments. Compare that to using say a pawn shop where you would have to surrender your car and be with out it. Also since this is a secured loan, your interest rate will lower than an unsecured loan, plus you may have as long as 36 months to pay it off. All while still driving and enjoying your car.

Often times you don’t even have to drive to the office to obtain a loan. Some firms can do it all online or by phone as long as you provide the proper documentation (I’ll discuss that later in this article.

Even if you have bad credit you can still be approved for car title loans as long as you have a job (in fact some lenders will accept disability payments as income) and own your car.

Here is all you need to obtain a loan:

-Clear car title—your title must show it free and clear of any loans on it.
-A valid drivers license
-Social security card
-Proof of auto insurance
-In some cases a recent pay stub

It’s that simple.

So here it is, if you have a job and own your car you will be able to get a quick and easy loan on your car. You can usually get a loan in under an hour (some offer in 15 minutes). That’s much faster then going to a bank and the rates are less than personal loans.

If you need cash quickly to help you get over some recent unexpected bills, or thinking about the holidays coming up, now is the time to get a car title loan and getthe money you deserve.

This is known as a secured loan. The car title loans lender now has some security when it comes to getting his money back. This is unlike a payday loan in which there is no security given. That is why a car title loan has a lower interest rate. You have pledged your car as collateral.

Even if you have bad credit, using your car as collateral can help you get a loan. A lender is more concerned about the value of your car and your monthly income than your past credit history. Generally a lender won’t even pull our credit report or credit score. As long as your car is worth more than $4,000 and you have an income, you can use your car as collateral to get a loan.

By using a money loan using your car as collateral, it may improve your credit. Pay on time and pay it off when due and it can only help your credit score. So yes, getting a car title loan can help your credit.