Courtney Myers Blog | Understanding the Auto Title Loan Process and What You’ll Need to Supply | Talkmarkets

Understanding the Auto Title Loan Process and What You’ll Need to Supply

Date: Monday, September 17, 2018 2:18 PM EDT

Despite our best efforts to budget wisely, save smartly and spend consciously, most of us will experience at least one period of time in our lives where money is a little difficult to come by. Maybe it’s the ebb and flow of the economy. Maybe it comes at a time of unemployment. Maybe there is an unforeseen circumstance that puts our bottom line a little behind where we’d like it to be. Regardless of the situation, the good news is that there are myriad ways out of this predicament and many avenues to travel down when you need cash as quickly as possible.

One such route is an auto title loan, also known as a car loan or auto equity loan. With this type of lending arrangement, you will essentially put your vehicle up as collateral on a loan. In return, your lender will analyze the amount of equity you have built into the car to determine the loan amount that you are eligible to receive.

While the deal sounds similar to one you would sign for at a pawn shop, where your personal goods are also used as collateral, the difference between an auto title loan and a pawn shop loan is that you don’t have to leave your vehicle with the lender in the interim while you’re using the money. Rather, you can continue driving your car in the meantime. The catch? If you default on any of your payments, your lender could seize your vehicle, selling it to get those lost funds back.

If this sounds like an arrangement you’re interested in, there are several steps you’ll need to complete before walking away with your new loan. It’s important to gather the needed information before you walk into a lender’s office so you are as prepared as possible. To that end, here are a few important papers you’ll need to bring along.

1. Your Identification Documentation

This is an important step in any lending process, but arguably even more so when you’re applying for an auto title loan. Why? The lender will need to verify that you are indeed the owner of the vehicle in question. You’ll need to bring along your driver’s license, along with your social security number to confirm that you are who you say you are.

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