How Does A Pink Slip Loan Work

A pink slip loan allows you to get cash by using your vehicle pink slip as collateral for a loan. It is usually set up to be paid back in installments, and the amount that can be borrowed against pink slips is determined by companies like GoTitleLend.

Pink slip loans are intended for emergency purposes only; they are not long term solutions to problems with money. They do serve a genuine purpose, however, it's essential to understand how they work and why they may benefit you. Here's our take on pink slip loans.

A pink slip loan gives you quick access to cash when needed. Car title loans and pink slip loans come with high interest rates and, therefore should only be used in emergencies.

Pink slip loans use your vehicle's equity as security for a loan. You pay back the balance over 6 to 24 months. If you own a vehicle and need cash fast, there may be no better option than using your car title as collateral.

Remember, you will always need to give the lender your car title. They will hold your paid-off car title as security until the loan is paid off. As long as you make on-time monthly payments, you can keep driving your vehicle, and you can get the pink slip back when the loan has been fully paid off.

What Do I Need To Get Approved For A Pink Slip Loan?

All pink slip loans require the actual car title as collateral. Even though you don't need good credit, you still need to show proof that you can afford the monthly payments. The lender will need to know that you have a steady monthly income from which they can deduct repayment monthly. Verify your income with bank statements, social security documents, or employment records.

Other pink slip title loan requirements may include proof of active vehicle registration from the DMV. You may need to provide proof of full vehicle insurance coverage, proof that your vehicle has passed a recent smog check, and you may have to take the car or truck in for a quick inspection to verify the current vehicle's value.

You must contact your lender at least once monthly when making pink slip loan payments. Since pink slip loans can accumulate interest upon interest, you must pay off the loan each month at its due date and time. If not, your account will end up with high fees and possibly lead to legal action against you by the pink slip title loan company.

How Much Money Can I Get With A Pink Slip Loan From GoTitleLend?

The amount of money you receive with an online title loan from GoTitleLend depends on the car's actual cash value, which is how much your car is worth at any given time. The car's resale value will fluctuate over time, but you can still get a reasonable estimate of the current value based on current sales prices. To find this out, use our online title loan calculator after typing in all your pink slip information. Generally, your loan amount will be anywhere from $1,000 to $5,000, depending on your vehicle value and ability to pay off the loan. Some customers can qualify for up to $25,000, but this is often only for cars valued at $40,000 or more. 

The pink slip loan amount you are approved for will be based on whether you already have an open pink slip loan with another company. You must pay title loan fees and interest for that pink slip term if it does exist before applying for another one. Some companies will charge pre-payment penalties if you pay off your loan early.

So, How Can I Apply For A Pink Slip Loan

Now that you know all there is to know about pink slip loans, what are you waiting for? Get all the necessary documents together and review your budget to determine an amount that works for your monthly payment. Apply for a title loan in Cleveland and consider a pink slip loan that uses your car as collateral! Consider the different approval timeframes and look at a 24 hour title loan to get cash quickly. Otherwise, expect your loan proceeds in 2-3 business days through direct deposit, or you can pick up a money order at multiple locations throughout Ohio.

Are you worried that it will take too long to get an initial lending estimate? At GoTitleLend, we've got you covered and can provide a quote in less than an hour! All we need is basic information about your vehicle, such as the make and model, your requested loan amount, and some generic contact details. Contact us at GoTitleLend today at 380-888-5035 to get a same-day quote for your vehicle pink slip!