When you are in a pinch and need money quickly, it can be hard to know where to go to get the money you need. Banks typically do not give out small loans because they are not as financially worthwhile for them. If you own something outright that has a title, you may be able to get a title loan on it. Many people think that cars or trucks are the only things you can get title loans on, but that is not the case at all. Use the guide below to learn a few things you may not know about title loans.
You Can Get a Title Loan on Just About Any Vehicle You Own Outright
If you own any type of vehicle outright, you may be able to get a loan on the title of the vehicle. RVs, ATVs, boats, motorcycles, and even planes can be used as collateral to get a title loan. Before being approved for the loan, the title loan company will need to see the condition of the vehicle and take pictures of it to ensure that it is in operational condition. The company will not give you a loan on a vehicle that does not work.
You Have Time to Pay the Loan Back to the Lender
When you get a title loan, you can often make payments to repay the loan rather than having to repay it in a large lump sum. You want to be sure that you understand the stipulations of the payment plan before agreeing to it to ensure you know when your payments are due and what will happen if you do not pay them on time.
The Payments May Show Up on Your Credit Report
When you make the payments to the title loan company, they may report the payments to the Consumer Reporting Agencies. This can help boost your credit rating because it will show that you are being responsible and repaying your debts on time. If you fail to make a payment, the lender may report that to the Consumer Reporting Agencies, which could damage your credit rating.
You Get to Keep Possession of Your Vehicle
When you get a title loan, you do not have to leave the vehicle with the title loan company. The company simply keeps the title of the vehicle until you repay the loan. If you fail to repay the loan, they can repossess your vehicle and sell it to try to get back the money that they are owed.
When you get the loan, the title loan company will establish the date that your payments need to be made. The lender may allow you to choose the date that you want your payments to be due to ensure that it falls during a time of the month that is most appealing to you.