A title loan offers a fast and effective way to borrow money secured against your can, bike or truck. This makes them attractive for people who own a car and need to borrow money with a bad credit score – and because they might have been turned down for traditional products such as personal loans or payday loans.
You can be eligible whether you own the vehicle outright, on lease or partially on finance.
When applying for a car title loan, you temporarily hand over the ‘title’ to the lender who owns the vehicle for the duration of the loan. So you can borrow 25% to 50% of the car’s value (sometimes upon inspection of the vehicle) and repay over 30 days.
However, if you cannot keep up with repayments and the lender has tried to collect on several occasions without success, your car could be repossessed by the lender.
Car title loans or auto title loans are also known as ‘pink slip loans’ because you hand over the pink slip stating your ownership of the vehicle when you apply.