A title loan can help you in a lot of things and going back to school is on that list. If you are on a budget — and we all should be — keeping to it is crucial for financial success. If your budget is tight, title loans can help. Take the time to learn about title and registration loans so you know what is available and whether it is a good financial vehicle for your needs.
A title loan and a registration loan differ slightly in how they work, but the end result is the same: rather than getting a loan based on your credit score and loan history, these title and registration loans allow you to borrow money based on a vehicle you own or are buying. The use of your vehicle as collateral circumvents the need for your credit to be stellar — you can have spotty credit and still get a loan.
A title loan means that you own the vehicle and you are using it as collateral on a loan. Because the loan is based around your vehicle, the worth of your car or truck sets the limit of how much you can borrow. If you have a recent model car in good condition, you can get a bigger loan than if it is a few years older or is banged up a bit.
A registration loan is what you use when you don’t yet own the vehicle out right. If you are still paying it off, you can borrow up to the amount you own. But you still don’t need a great credit score to get this type of loan and repaying either type will help build your credit rating so you can get better terms from us and potentially use more traditional loans down the road.