February 24, 2020
Need Money for Spring Home Projects? Consider a Title Loan
Need Money for Your Home Project? Get a Car Title Loan
Don’t have the cash for that deck in the backyard? How about a privacy fence or a pool? With a car title loan, the wait is over! Spring home projects can begin right away.
It’s as easy as 1-2-3. Just show the ownership of a car, truck, or motorcycle and proof of employment, and that home project can hit the ground running. Car title loans are available at Select Title Loans in Florence, Alabama with fast in-and-out ease.
How Does a Car Title Loan Work?
Before visiting your car title loan provider in Alabama, you need to gather a few documents.
Generally, a lien-free title, photo ID, proof of insurance, and proof of a steady source of income are needed. The original title with no lien will get you started. A driver’s license will do for the photo ID.
Proof of insurance is usually done with a copy of the policy or a summary card that most keep in their glove box. In some cases, proof of insurance is not needed.
Proof of a steady source of income can be made with a recent pay stub or other evidence showing a constant cash flow that should continue for the duration of the loan. This cash flow can be many things including documentation proving annuities, court documents showing alimony conditions, payments from long-term investments, legal settlements, and more.
The number and types of documents vary depending on the loaning institution’s requirements. After one has satisfied the documentation requirements, the car needs to be taken to the loaning institution for inspection and documentation review. Once approved, one gets the cash, keeps the car, and work can begin on that spring home project!
What if the Vehicle Title Isn’t Clear?
In most cases, one can’t get a car title loan unless the title is clear. That is, the vehicle isn’t being used as collateral for a previous loan. As with many things in life, there are exceptions. It is possible to get an equity loan. An equity loan is like a home equity loan where one borrows against the equity in the car. The equity is the value of the vehicle minus the amount of the outstanding loan balance. All or some percentage of this amount is fair game for the loan amount. You can borrow as much or as little as you need, making it a very flexible option compared to many others out there.
How Much Money Can Be Borrowed?
As with the documentation, different loan institutions have different policies. In general, this depends greatly on the value of the vehicle and the ability to repay the loan. A rule-of-thumb is that the loan can range from 25% to 50% of the value of the vehicle. For example, if the vehicle is worth $10,000, the maximum loan amount can range between $2,500 and $5,000.
According to the Federal Trade Commission, the average loan amount for a car title loan is between $100 and $5,500, however, some financial institutions loan up to $10,000.
Car title loans, therefore, represent a way to get a larger amount of money than you can on other types of short-term loans in Alabama. Because the lender has a short-term lien on your vehicle, they are at a lot less risk than when a loan is completely unsecured. So, they’re able to lend more.
Secured loans like a car title loan can also be at a lower interest rate because of this reduced risk. Alabama laws ensure that the interest rates charged by car title loan companies are within a reasonable limit, so you can be sure you’re getting a good deal. Still, you can shop around to see the different interest rates that Florence, Alabama car title loan companies will offer you.
What about Credit Checks?
As with the rest of the loan requirements, this too varies among financing companies. Some may check credit reports while others do not. There are many factors contributing to this decision including the amount of the loan and the perceived risky nature of a steady source of income. Many companies, such as Select Title Loans, often don’t require a credit check and allow for poor credit loans in Florence, Alabama.
Spring Home Projects That Save Money
The things one can do with the money are limited only by the imagination and, of course, the amount of money available. One can use the money best if projects are selected that will actually pay for themselves in the long run. These are generally maintenance projects like adding insulation, maintaining an air conditioner (e.g., new compressor and coil maintenance), new more energy-efficient windows, roof repairs, caulking, planting shade trees, and more.
It’s often the case that people turn to Alabama car title loans because an emergency has arisen in the household. When the fridge or air conditioner packs in, or there’s a hole in the roof, it makes sense to get it fixed quickly and without fuss. A car title loan in Alabama can get you the cash you need quickly and there’s no long-term commitment. You can repay the loan when your paycheck comes in and you’ve avoided all of the expense caused by the emergency.
Spring Home Projects for Fun and Home Equity-Building
Spring home projects are fun and they increase the value of one’s home. Many add decks to their backyards for those barbecues and other get-togethers. Others add a pool, patio, or privacy fence. The options also include adding a vegetable or flower garden, re-sodding the yard, building a gazebo, new siding, extending a driveway, and repainting your home.
The advantages to getting a car title loan are many depending on one’s situation. It is convenient, fast, and simple. With a little document gathering and time, one can get that spring home project underway in no time while keeping your vehicle.