You could really use a short-term loan to float you unil you can get out of an unexpected situation. A bank loan is not in the picture, and you need more than what a payday loan will provide. You do have a car and a clear title, though, so you’re likely eligible for a title loan. As a resident of the Yellowhammer state, you may be wondering how you can get a short-term loan in Alabama.
Read on.
Title Loans
These short-term loans require borrowers to own their cars free and clear, and have income sufficient for loan repayment. Because the loan uses the borrower’s vehicle as collateral, approval rates are high. You can also keep your vehicle while you’re making payments.
What About my Options?
In a perfect world, you’d have a relative or friend who will help you out until you get over the proverbial hump, with flexible terms and no interest, to boot. Alas, such a loan is not always possible, and you may not want to go that route anyway since it might strain the relationship.
A payday loan may not be doable since you require more than the couple of hundred dollars you can get — and must repay by your next check. And besides, interest rates are generally more than what you’d pay with a title loan.
That leaves you with a bank loan – IF you can get one. Banks typically have stringent qualifications that include excellent credit. They also typically have drawn-out application processes that can exceed the timeframe you have to get out of your predicament.
What Do I Need for a Title Loan?
It depends on the company and your state of residence — we’ll focus on Alabama below — but borrowers generally need proof of insurance, a government-issued ID, pay stubs or other proof of income, and interior and exterior photos of the vehicle you want to collateralize. That vehicle, by the way, can be a car or truck, or course, but also a boat, RV, or motorcycle.
How Much Cash Can I Get?
Again, every state and company is different, but in general, the amount you can borrow is based on your vehicle’s value and your income.
Expect to get between 25 and 50 percent of your car’s value. The lender will weigh your vehicle’s mileage, age, make and model, and model, and overall condition.
How to Get a Short-Term Loan in Alabama
As we say, every state has its particulars regarding vehicle title loans. Here are some specifics about title loans in Alabama:
- You can get a loan of up to $20,000.
- You may not have filed bankruptcy within the last seven years or have any judgment against you that could affect ownership of the vehicle you wish to use for a loan.
- The maximum amount you can get is mostly based on the vehicle’s potential resale value. Remember, if you miss payments your vehicle may be seized and sold to cover the loan.
- You’ll need proof of employment that could be in the form of a verification letter from your employer. That’s in addition to proof that you earn at least $1,500 monthly. That amount could go up, depending on the loan amount sought and proffered.
- You must be at least age 18 and have a valid state-issued photo identification.
- You must apply online; approval can take just minutes.
- Upon approval, cash will be deposited in your account that day. If you live in Huntsville or Mobile, you can go get the cash directly from the lender.
Now you know about vehicle loans and how you can get a short-term loan in Alabama. While qualification is easy, you must first be 100 percent certain you can pay the loan back.