There are many different loan constructions out there. One of those is the car title loan. This type is becoming increasingly popular and basically means that a borrower puts up the title deed of their car as collateral.

How to Apply for a Car Title Loan

One of the greatest advantages of car title loans in Texas is that they are so easy to apply for. While your credit rating is not important, unlike with other types of loans, there are a few acceptance criteria. Exact criteria will vary depending on the lender and your geographical location. However, some of the standard requirements include:

  • You must have a completely clear, or almost clear title deed.

  • You must be at least 18 years of age (21 in some states).

  • You must have a valid bank account with direct deposit facilities.

  • You must be a legal and permanent resident of this country.

  • You must be employed.

Another great advantage of car title loans is that they are very quick to apply for, particularly if you apply online. The lender will simply have to take a short while to check your vehicle’s value and deed and to make sure your identity and other details are correct, and they will make a decision there and then. Usually, lenders guarantee that the money will be in your account within 24 hours of applying for it. This means that you can almost instantly meet all those financial emergencies.

How Come Car Title Deeds Have a Bad Reputation?

If you ever look up car title deeds online, you are likely to come across a range of warnings telling you to avoid them as much as possible. This is due to a few reasons, including:

  • The warnings come from financial experts who will advise against any type of loan construction.

  • The warnings come from people who have had their vehicle repossessed because they didn’t meet the repayments.

  • The warnings come from people who were scammed before the car title deed industry became regulated.

  • The interest rates are incredibly high on these loans.

Financial experts are right: loans are never a good idea. However, when you are facing a financial emergency, there is little else you can do. And it is also true that the interest rates on these loans are very high. However, they are also short term loans, which means that you don’t actually pay all that much interest. Warnings from people who have had their vehicle repossessed should be ignored, as they lost their vehicle due to their own behavior. Finally, people who were scammed should no longer worry, because the industry is now completely regulated. Lenders have to meet laws set at federal, state and local level. This means that they have to operate within certain strict regulations that have been put in place to protect people like you.

If you are facing a financial emergency, then a car title loan may just be the perfect solution for you.


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