Whether you have a good credit score or not, chances are things can and usually do break down when you least expect it. Car title loans are a great resource for those who find themselves in this situation with no way to get a loan to buy a new one. Car equity loans require a pink slip as the collateral and they are quick to approve the loans and the money deposited into an account within a few hours. However it is important that you have all the information available when you apply otherwise there could be a delay.
When you have a car collateral or pink slip loan, your lender will hold onto the pink slip so you can continue to drive your vehicle while making the payment. You are still going to need insurance while paying on your loan, in fact most, if not all lenders will require it.
Once a loan is approved for someone who has bad credit, you don’t have to worry about them keeping your vehicle and holding it until you make all the payments back. However your title will stand good for that. If you fail to pay the loan back, they have the right to pick up and repossess your vehicle on the spot. If you have insurance on the vehicle while the vehicle is up for the loan, and you are in an accident, you can damage the vehicle and the lender will lose their value of the loan. They can pursue legal actions.
If you do not have insurance on your vehicle when you apply for a car title loan, most lenders will deny the application on the spot. You need to have at least the minimum basic coverage that is required by your state in order to approve your loan.
Auto insurance is a requirement in most states today but the minimum requirements can range from state to state. Some states also require that you have property damage liability insurance with a minimum amount as well.
Your monthly payments will be determined by your state and the vehicle you put up for the loan. You can usually get a discount on payments if your insurance is extremely high. An insurance quote is usually based on your credit score as well. Compare rates online before you apply for your car title loan. This will help you save money in the long run.