If you have found yourself facing a very rough financial situation and you are in need of some quick cash, you might have thought about obtaining a car title loan. While this might be a good way to get you out of the financial bind that you are in, you will want to make sure that you are fully aware of what you will need, what you can expect from the process, and how you can ensue that you are not going to lose your vehicle. Here are things you will want to keep in mind:

You Need To Have A Clear Title To Your Vehicle

Having a clear title to your vehicle means that there are not any liens against it. You do not have a car loan that you are paying on and you have the vehicle title in hand. You will need a clear title to take with you when you go to apply for this type of loan. This is because the car title company will become a lien holder. If you were to not repay the title loan, they will have the right to repossess the vehicle.

They Will Determine Your Loan Amount By The Value Of Your Vehicle

There is no set amount of money that the lenders give per vehicle. You are not approved for a loan amount based on your credit. Instead, the loan amount is based on the value of your vehicle. In most cases, the title loan companies will only lend up to a certain percentage of the value of your vehicle. The more your vehicle is worth, the more you may be able to lend.

You Will Need To Show Proof Of Income

Even though the loan is mostly based on the value of your vehicle, you also must be able to show that you have income to support the payments you will have to make. Pay stubs from your work or award letters from Social Security is generally all you need. Make sure that you are going to be able to make every payment back to the loan company so your vehicle does not get repossessed.

Now that you have a little more of an understanding regarding what you will need to expect from this entire process, you will want to begin your search for a local car title loan company that you can apply through. Gather all of the documents that you need and get your vehicle ready to go down to the loan company. Since the loan application and approval process can sometimes take a little bit, you will want to try to go to the loan company at least a couple of hours before the close for the day.