The pink slip loan turns out to be an excellent solution when you are in the urgent need of funds. These loans are even denoted as "car cash loans", given to the owner of their car. This means the car acts as a form of collateral. Despite the simplicity of the loan, there are certain queries that revolve in the mind of people as a result of which they are not sure whether to choose it or not? If you are one of them then this article is just for you, as it explains everything that you need to know about the loan and how to get them in five easy steps.
Everything You Need to Know About Pink Slip Loans
A pink slip loan is a form of secured auto loan. A common example of secured loan is mortgage loan where the home is backed by the collateral. In this case, the security will be the car. Such loans are available to everyone who comply with the essential standards and own pink slips. However, in order to be eligible, you need to ensure that:
- The slip contains your name as the sole owner and not the lender
- If you haven't paid off the borrowed money that you had taken for purchasing the car, the slip would remain in the name of the lender
- Only when you have cleared the pending financial obligations you will become eligible for the loan
The idea is simple! An already existing outstanding loan means you won't be able to take another loan against the car. Therefore, make sure that the certificate of title or slip is in your name allowing you to take money against the same.
Getting Pink Slip Loan in 5 Easy Steps
The five simple and easy steps that would lead your way to pink slip loan in a convenient manner are:
- Determine how much you will be able to afford: Once you decide to take a loan against the car then a good practice is to determine the average interest that you will be able to afford. This is because the money that you borrow from the lender is directly proportional to its rate of interest.
- Look for the suitable lenders around: Never go by the first option that you come across, rather look around and get to know more about various lenders near your area who consider pink slip loans and have offered their services to other borrowers before. Always choose a trustworthy lender who comes up with the right interest and loan standards.
- Know the options that you have: Most of the people often think that slip loan is just about taking money against the car, yet there is more to it. Companies offer several options to their customers to help them get the best one. Here you have to weigh the different options and then select a preferable one.
- Apply for the pink slip loan: Once you are sure about what you need and the interest that you are willing to pay, the next step is to apply for the loan with the essential documents for verification. After successful verification, the loan would be approved and you can take advantage of pink slip loan.
- Discuss your queries with the lender: Approval is not the final step of the process, rather after this you should discuss your queries with the lenders focusing on the way interests are calculated and other associated rules.
Follow these five steps to get quick pink slip loan approval from a certified company and that too in a hassle-free manner.