Bills can pop up out of the blue and you can’t wait for your next paycheck. Maybe it’s a surprise medical expense or car repair bill, whatever the reason, you need cash quickly. Thankfully, you have a few options that don’t involve any illegal activities.
In fact, Alabama residents may be able to get the money they need in 24 hours or less. Of course, we’re talking about auto title loans in Alabama here.
So, how do you go about getting a title loan, and does this mean giving up your vehicle? Keep reading to learn more.
You Keep Your Vehicle
Okay, the first thing to cover with a title loan is who gets your vehicle. Don’t panic! You hang onto the vehicle, not the title loan service. The vehicle stays in your possession as long as you make the loan payments on time.
Think of your vehicle as collateral on the loan, which means even if you’re unemployed you can still get approved for a title loan. However, if you start missing loan payments, the service can legally be repossessed, which means you lose your vehicles, sometimes permanently.
You can recover your car if you pay the loan back in full. However, you’ll also be dealing with extra fees associated with the repossession—think of things like towing and storage fees, and these aren’t cheap.
Qualifications for an Alabama Title Loan
So, what qualifications do you need to meet? Thankfully, there’s only a few. First, you don’t need to prove employment, so make sure you leave your paycheck stubs at home, as a title loan isn’t the same as a payday advance. You can also stop worrying about your credit score since no one cares if your credit is awesome or sub-par.
You need to own the vehicle, which means having the title in your name, and there aren’t any exceptions when it comes to vehicle title requirements. The title must be solely in your name, so if the vehicle has shared ownership or you have a co-signer, you won’t qualify for a title loan.
Why does it matter if more than one name is on the vehicle title? If a vehicle is under shared ownership, it can’t be used as collateral without both parties agreeing to the loan. This creates headaches for title loan companies, along with a few tricky legal ramifications.
For example, the title loan service can’t repossess a vehicle owned partially by another person not associated with the loan.
Bring These Documents
When you’re ready to hit the title loan office, don’t walk in empty-handed. You’re going to need to bring some documentation. Don’t worry, it’s not a lot of paperwork. You should have the necessary documents close at hand.
You’ll need a valid driver’s license with your current address. Go ahead and bring some mail to verify your address. You’ll also need the vehicle’s title. That’s it! Fill out some paperwork and you’re all set. Most people get an answer within a few minutes.
Titles Loans Can Be Great For Emergency Funds
Title loans present a mixed bag of benefits and drawbacks: they provide a rapid source of emergency funds but at the cost of high interest rates.
Hence, if immediate financial liquidity is a critical need, opting for a title loan might be the most practical solution, though it’s important to carefully weigh its long-term financial implications against the urgent need for cash.
