People see commercials about pink slip loans, or they over hear their friend, colleague, or family member discussing how they got a good chunk of cash from a pink slip loan. However, many people are not informed as to what a pink slip loan really is. Essentially it is a type of credit loan wherein the individual receiving the loan uses their car as collateral to secure cash. These pink slip loans are generally smaller, faster, and easier to secure then typical loans issued by commercial banks.

The application process for a loan can be done mostly over the phone or online. However, a loan agent may personally contact the pink slip loans candidate to obtain or verify certain information. The whole process of receiving a pink slip loan has been streamlined, and it has become quite fast.

Those seeking to obtain a pink slip loans generally need to meet some basic requirements. However, the following requirements will obviously vary somewhat depending on the pink slip loan institution. First of all, a loan candidates needs to have their car completely or almost completely paid off. This vehicle generally needs to be valued at least around $5,000. The vehicle also needs to be a decade or less old. The pink slip loans seeking individual should also have access to the internet and/or fax machine. Most pink slip loans institutions also require the individual to have verifiable proof of income of at least $1800 a month. All pink slip loans candidates must be 18 years of age or older. It is also important for the car being put up for collateral to have full coverage insurance on it. The pink slip loans agent will often ask to see a bill like a home phone or cell phone bill, so as to verify the loan candidate's address. Pink slip loan agents seek to help people with a broad range of credit histories to get loans, whether near perfect or abysmal. However, it is very tough for persons currently in bankruptcy to obtain a loan. It is also difficult for pink slip loans candidate's to be approved if they have three or more delinquent accounts. If the candidate has had something repossessed within the past six months, it is difficult for them to obtain a loan. Lending agents also often ask for around eight references. They will generally want some of these references to be family members. The aforementioned information is basically everything the loan candidate needs to provide.

The typical pink slip loan is generally small compared to the hundreds of thousands or millions loaned out by commercial banks; however, pink slip loans can be for several thousand dollars depending on the agency, value of the car, and individual. Some institutions have set a floor of only doing loans worth $2,000 or more.

One big concern for pink slip loan seeking individuals is whether or not their credit report will be pulled. Many people are embarrassed by their credit score and fear that they won't be approved. Some lending institutions do pull the candidate's credit score, but only to verify some basic information.

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