Blog List > What is a Vehicle Title Loan?

What is a Vehicle Title Loan?

Vehicle title loans (also known as car title loans) are a relatively fast and painless way to raise money quickly. These loans are a great opportunity for people who need cash in a hurry, and they’re especially useful for people with poor credit.

What makes vehicle title loans so great? It’s simple: vehicle title loans are convenient, readily available (even to people with bad credit), and quick. To get a vehicle title loan, all you need is a car that you own outright, or which you’ve nearly paid off.

With a vehicle title loan, you won’t have to worry about facing a long, drawn-out and complicated loan process, because the entire application, approvals and funding process only requires three simple steps:

  • Apply for your loan online, by phone, or in person
  • Turn in the necessary paperwork (your car’s title, a paystub to verify income, etc.)
  • Collect the funds you requested

Borrowing money doesn’t get much simpler than that!

Of course, there are some risks associated with using your car as collateral for a loan, but as long as you make your monthly payments on time, you won’t have to worry about a thing. Plus, keep in mind that by using your car as collateral, you’ll ensure that your loan comes with the best repayment terms possible (lower borrowing costs, better repayment schedule, etc.).

There really is no better way to borrow lots of money quickly, so if you’re in a hurry to raise some cash, be sure to keep vehicle title loans in mind.
 

Three Major Benefits to Vehicle Title Loans

While there certainly are other lending options available to people who want to raise money quickly, vehicle title loans are the best option for three simple reasons:

  1. Vehicle title loans tend to come with lower interest rates – by securing your loan using your car as collateral, lenders are likely to allow you to lock in a lower interest rate
  2. Vehicle title loans are capable of raising more money – if you need thousands (or even tens of thousands of dollars), then you’re in luck – vehicle title loans are only limited by the value of your vehicle; the more your vehicle is worth, the more money you can borrow
  3. Vehicle title loans come with better repayment terms – unlike payday loans and many other forms of short-term lending, vehicle title loans can be paid back over an extended period of time via affordable monthly installment payments

When you investigate all the options, it’s clear that vehicle title loans are your best bet for raising large sums of money in a hurry, and City Loan is the best lender in the market. Get the cash you want today without having to sacrifice the use of your vehicle by calling us right now at 1-888-238-9085.

We’ll get you the cash you want without forcing you to park your vehicle, and, in fact, we won’t even place any restrictions on the number of miles you can drive, how or where you can drive, or anything else of that nature as long as you continue to make your loan payments on time.

There’s a reason we’re so well-known as the best provider of loans for people with poor credit; we’ve got the best interest rates and most favorable loan terms in the business.
 

How Do Vehicle Title Loans Work?

Before you sign any paperwork, we want you to have a complete and accurate understanding of the vehicle title loan process. Fortunately, it’s so simple that you’ll be a title loan pro by the time you finish reading this post.

To start, in order to receive a title loan, you’ll need to use your car as collateral. That requires you to give City Loan temporary possession of your car’s title, but don’t forget that we will still allow you to drive and use your car however you like, as long as you keep making those monthly payments on time.

Next, we’ll provide you with a loan based on the value of your vehicle, getting you cash (or credit delivered to one of your bank accounts), and you’ll be able to use that money however you like. Want to open a new business, fund some purchases, take a vacation or buy your family gifts? You can use the cash you get from us however you want!

Don’t worry if you don’t have perfect credit, because we’re well-versed at lending to people with poor credit scores, and even if you’ve already been told “No” by several other lenders, we may still be able to help.

Sounds pretty good, right? Well it gets even better, because vehicle title loans are incredibly easy to pay back. Instead of having to pay the entire loan back all at once (like with payday loans, credit card cash advances, etc.), you’ll have the option of paying back your loan in affordable monthly increments.

Repayment terms vary slightly for different borrowers, but the important part to keep in mind is that we won’t be requiring you to pay back the entire debt all at once (as that would be unfair and extremely difficult for the borrower), so you’ll have plenty of time to raise enough money to pay back your loan, plus its borrowing costs.

After you’ve paid off your loan in-full, we’ll start the process of transferring your vehicle’s title back to your name.

Here’s a breakdown of our title loan process, explained in four easy steps:

  1. We take temporary possession of your car’s title (pink slip)
  2. You get a cash loan based on the value of your vehicle
  3. You start making small monthly payments to pay back your debt

We give your title back after the loan and borrowing costs are repaid in full

There’s no simpler way to raise thousands of dollars quickly, so if you’re in a hurry to come up with some serious cash, then make sure to call City Loan today.

One last thing you should keep in mind is that we aren’t the only company that offers vehicle title loans, but we are the best lender in the market. Some of our competitors operate entirely differently, and may require you to leave your vehicle with them until it’s fully paid off, or they may place restrictions on the number of miles you can put on your car, or on where you’re allowed to take it in the first place.

Here at City Loan, as long as you continue to make your monthly payments on time, we won’t limit your driving in any way.
 

Advantages of Vehicle Title Loans

Vehicle title loans have tons of benefits, especially when compared to some of the other lending options out there. You may be considering getting a payday loan, a credit card cash advance, or some other form of short-term loan, but here are some reasons why vehicle title loans are an inherently better idea:

  • Vehicle title loans come with a streamlined application process, allowing you to get the money you want as quickly as possible
  • Vehicle title loans are often available to everyone who owns their car outright, even including people with bad, or even terrible credit
  • Vehicle title loans typically get distributed the same day the application is completed, meaning that you won’t face any delays if you’re in a big hurry to raise money quickly
  • Vehicle title loans let you use the equity you own in your car as collateral, all without having to sacrifice the use of it (many collateral loans require you to leave the collateral item with the lender, like the way a pawn shop works)

On another note, make sure to keep in mind that every title loan company offers a different deal, and that your choice of lender can be a major factor in the equation determining the value of your loan.

While one lender may offer you a great deal, some others may be little more than scam artists looking to prey on customers, and burn them with overly-expensive, overly-restrictive lending conditions.Some may even refer to their vehicle title loans as auto title loans.

Be careful about determining who to borrow money from! Your lender will have enormous control over your life until you’ve fully repaid the loan, so choosing the right lender could be a vital factor in determining your future quality of life.

To make sure that you get the best deal possible on your vehicle title loan, make sure that you get it from City Loan Long Beach.
 

Vehicle Title Loans For People with Poor Credit

Perhaps the biggest benefit to vehicle title loans is that they are readily accessible to people who don’t have perfect credit scores.

Even if your bad credit has lead to other lenders saying “No”, we may still be able to help. There’s a reason why we’re so widely known as being the best lender for people with poor credit – we really might be able to help.

If you have credit problems, but you own your car outright, please call us now to find out if we can get you the cash you want today.
 

Vehicle Title Loans vs. the Alternatives

These days, there are all sorts of ways to raise money quickly, but how do they compare to vehicle title loans?

Vehicle Title Loans vs. Vehicle Pawn Loans

They sound the same, but these are completely different types of loans.

Vehicle pawning is similar to vehicle title loans in that both use your car as collateral to secure a loan, but there’s one major difference between the two borrowing opportunities: most title pawn companies will require you to leave your vehicle with them until the loan is fully paid off.

Why give up your vehicle when you could get the same (or more) amount of money from City Loan? As long as you keep making your monthly payments on time, we won’t restrict your driving in any way!

Does it make sense to pawn your car when vehicle title loans would let you raise the same amount of money without having to give up your ride? Of course not!

Compared to vehicle pawn loans, vehicle title loans are a much more convenient way to raise money quickly.

Vehicle Title Loans vs. Payday Loans

Payday loans may be widely available, but they’re also one of the most heavily regulated short-term loan options in the marketplace, and for good reason. So many payday loan lenders have abused their customers that 14 states have resorted to banning payday loans outright.

If that’s not enough to change your mind about getting a payday loan, then be sure consider these other drawbacks to payday loans:

  • If you’re getting paid under the table or are currently unemployed, then you may not qualify for a payday loan. Typically, lenders require a paystub to prove that you have a steady income.
  • The value of a payday loan is determined by how much you get paid. You’ll only be able to borrow as much as your next paycheck is going to be.
  • Payday loans must be paid off all at once, on the date you get your next paycheck, meaning that they’re extremely difficult to pay off in full and on time.
  • Missing your payment or being late on your payment will lead to all sorts of penalties and additional fees, dramatically inflating your costs of borrowing money via payday loans.
  • Protect yourself from the predatory lending practices associated with payday loans by getting a convenient, fast and reliable title loan from City Loan Long Beach instead.
     

Vehicle Title Loans vs. Credit Card Cash Advances

Credit card cash advances are another popular form of short-term lending, but they too come with some serious downsides:

  1. Credit card cash advances are only available to people with credit cards in good standing (not already maxed out)
  2. Credit card cash advances are usually limited to a few hundred dollars, depending on how much credit you have left available on your card
  3. Credit card cash advances often require excellent credit scores, unless you’re prepared to pay extremely high interest rates

With vehicle title loans, you won’t face any of these restrictions. First, they’re available whether or not you’ve got a credit card. Second, they’re capable of raising up to tens of thousands of dollars (depending on the value of your vehicle). Third, they do not require perfect credit, so may be able to get one even if you have credit issues on your report.

Vehicle Title Loans vs. Traditional Bank Loans

If you can qualify for a traditional bank loan, then we recommend that you use this avenue to borrow money, as it’s one of the cheapest ways to raise cash. However, keep in mind that there are some major issues to borrowing money from banks, and that these types of loans definitely won’t work for anyone who’s in a hurry, or for anyone who has any credit issues at all.

There are a lot of reasons why you might not want to pursue taking out a bank loan, even if you do qualify for one. Here are some of the downsides to borrowing from a bank:

  • Bank loans come with a long application, approval and funding process. A bank loan can take weeks or even months to get approved and disbursed. You may not have the time to spare.
  • Bank loans are only available to people with great credit scores (the general consensus is that you need at least a 620 credit score to even have a chance at getting a loan from a bank).
  • Bank loans typically can’t be used for anything you want, but have to be spent on certain approved expenses, like buying a new house, investing in a business, etc.

Compared to bank loans, Vehicle title loans are a much better option. They’re faster, easier to qualify for, and can be spent on whatever you want!
 

Tips For New Borrowers

If this is the first time you’ve taken out a title loan, here are some tips that will help ensure you get approved for the best possible loan:

  1. Your car needs a clear title. This is a requirement to get your loan. If your car isn’t in your name, then you can’t use it to get a title loan.
  2. Your vehicle must be worth more than you owe. How much you can borrow is determined by the equity you’ve built up in your car (the amount of it that you actually own). For most cars, you’ll need either have it fully paid off, or have just a few remaining car payments left on it.
  3. Make sure that your car is worth at least a couple thousand dollars. Most of the people who get denied vehicle title loans are turned down because their vehicles aren’t worth enough money.
  4. Make sure that you pay back your loan on time, without missing a single payment. Missing payments can lead to penalties, or even repossession, so don’t borrow more money than you’re sure you can pay back.

Just like taking out any other type of loan, there are risks associated with borrowing money via vehicle title loans. If you follow the advice above though, then you should end up having a great experience with your title loan.
 

City Loan Long Beach Can Help!

City Loan has the best vehicle title loans in the country, and we’re ready to offer you the financial help you want right now.

No matter what your credit history looks like, we may still be able to help. Sometimes, we’re even able to lend money to people with bankruptcies, loan defaults or even car repossessions!

Our application process is simple, streamlined and as fast. If you’re in a hurry, give us a call right now and we’ll do our very best to get you the money you want today. Even if other lenders have already told you “No”, we may still be able to help.
 

Find a City Loan Near You!

Are you a Long Beach local? If so, visit our office at: 

Address: 
3431 Cherry Ave,
Long Beach, CA 90807

Don't worry if you're not located near our Long Beach location. We can still help!

City Loan offers the best car title loans in MissouriNew MexicoTexas,  ArizonaUtahCalifornia, and South Carolina. If you live in any one of these states, chances are that City Loan can help you get the vehicle title loan you need. Find out for yourself and get in touch with us today.

Get your own fast, easy and convenient vehicle title loan today by calling City Loan at 1-888-238-9085.