A title loan is a secured loan that uses a car title as collateral. These loans allow people to use their vehicle equity as a way to secure a short-term loan to cover unexpected emergencies. The car title is given to the creditor as collateral, and if payments on the loan are not made, the car can be repossessed and sold to recoup the value of the loan. While these loans charge higher interest rates than a comparable loan using home equity, these loans allow people with precarious finances a chance to take a loan and cover an emergency. Title loans in New Castle are available from a variety of sources.
The application process for title loans in New Castle
Applying for a title loan is easy, quick and simple. The application asks for information on the make, model, year, and mileage of the car. This is the primary tool for assessing the ability to get a loan. Additionally, the application collects basic information about the applicant looking for a loan, and requires that they have proof of income and a steady job. However, these applications don’t ask for credit scores, which can be a benefit for those not able to access traditional credit. After filling out the basic application, applicants will be given a free title loan estimate on the terms of their loan, and a loan officer will reach out with further information. While most credit applications require that the recipient of the loan has a good credit score, title loans do not check credit scores. They only require proof of income and that the applicant has a steady job. As such, they can be a great resource for those outside the net of the traditional banking system. The application is quick, easy, and is processed incredibly quickly.
How to get a title loan in New Castle, PA
While it is not possible to get title loans in Pennsylvania, there are a variety of options for consumers looking to use title loans. For instance, people looking for title loans in Pittsburgh can take a short trip to New Jersey. For people looking for title loans in New Castle, Delaware is only a short trip away.
The benefits of title loans
Title loans are short-term loans that use car equity as collateral. These loans allow people to access credit when they might not be able to otherwise. Additionally, these loans do not check credit scores when considering a loan application. While a poor credit score typically bars people from accessing credit, they still have the ability to access title loans. This can be a lifesaver for those facing a short-term emergency in need of a loan. The application requires that the recipient of the loan has steady income and a job, but there is no requirement for a good credit score. As such, this can allow the “unbankable” to access credit. In addition to helping in the case of a financial emergency, title loans allow these people to successfully build their credit by taking then paying off a loan. By properly using a title loan, people can use their present vehicle equity to take a loan and avoid financial emergencies. Successfully repaying this loan allows people to build their credit and have a proven history of payment. This in turn will boost their credit score, and allow them to access different forms of credit that require a credit score. These short-term loans can be incredibly valuable in an emergency, and they might help when you need it the most.