A title loan is a loan that is based upon offering your car as collateral. The reason for calling this type of loan a title loan is that the lender will require you to leave the title of your car with them. These loans offer many advantages. They are easy to get, even if you have bad credit, and these loans can get approved quickly. They can be paid back in installments, and they offer lower interest rates than other fast money loans. There are various requirements for getting a title loan, depending upon the state that you live in. The following is an example of the requirements for title loans mississippi.
You will need a clean title
Sometimes a clean title is referred to as a clear title. This means that no one has any claims to your car. Usually, this will mean that you are not using it as collateral for another loan. It is possible to use a car as collateral without surrendering the title. In general, there should be no legal claims to your car. The title should be in your name only. If, for example, the title is also in your spouse’s name, you may still be able to get a title loan, but your spouse will need to cosign on the loan. A clean title means that there is no question that you own your car.
You will need to have your car inspected
Although they will keep the title after you get your loan money, they still want to see the car they are holding the title to. One reason for this is that they want to make sure that it is running, and you are not attempting to get a loan on a junk car that has little value. They also want to determine the general condition of the car. Your car is collateral for the loan, so if you don’t pay back the money, they will take your car for resale, so they can get their money back. A car in running condition can be sold, if needed.
Finally, you will need a government, photo identification card, so they know who you are. The rest of the requirements will depend upon the process of collecting on a loan from a particular lender.