Have you ever heard about pink slip loans? Many of you come to know about it from a friend who was looking for some immediate cash and borrowed money against his car. If you face the same life problem, then the most favorable financial solution comes in the form of the best car title loans. It's time to tap on the ultimate guide of pink slip loans, aka title loans.
What is the process of Pink Slip Loan?
In the USA, every state has different rules and regulations when it comes to borrowing and lending. However, when you talk about a pink slip loan, it's generally a short-term loan that a borrower can get by using his car as collateral for the loan.
For getting qualified for this loan, a borrower must be the sole owner of the car. The vehicle must have no lien, and if he got it from a car financing deal, then all his debt is paid off. Another essential requirement for getting a car title loan online is that the car title must be under the borrower's name.
The car title is commonly named as a pink slip in California. So, when you are giving a pink slip to a lender, you are basically borrowing money against your car's resale value and you can get a loan amount up to some percentage of that value.
Car Title Loan is Better than Payday Loans
When it comes to raising cash or meeting your immediate cash needs, people first think about payday loans. This insecure loan had remained the ultimate choice of many people for the last decade. However, payday loan scam and the low limit of this loan have changed people's minds. Now they prefer car title loans over a payday loan as they know that later worths nothing. Understand why payday loans are a terrible idea. Although you are using your car as collateral, you don't hand the vehicle to the lenders with a pink slip loan. You not only get the loan amount but also get to keep and drive your vehicle. Pink slip will be transferred to the lender's name until the time you pay off your best car title loans and move this slip back to your name.
What're the main Requirements for Getting a Pink Slip Loan?
When it comes to things needed for a pink slip loan, a borrower feels quite relaxed because there is nothing much to do. You already have car insurance, whose proof you will share with the lender. If you are a car owner, you already got a car registration document that you need to give to the lender. Other things are your driver's license, identification number, and a pink slip. Some lenders require you to install a GPS tracker in your car and handover them extra keys to the car, so in case of default, they can repossess the vehicle.
Before you opt for a pink slip loan, you must know that this loan comes with repossession risks, and if you think that you can pay back the loan as quickly as in one month, you should give it a try.