Benefits of Title Loans
Sometimes people need money quickly without hassle. An auto title loan may be the best solution to get funds during a difficult time.
What is a Title Loan?
Auto title loans are small short-term loans where a person uses their vehicle for collateral. When a person owns a car or other vehicle, auto title loans are a great way to secure emergency funds. When a car title loan is processed, the loan company places a lien on the title of the automobile as possible payment to the lien holder, if the auto title loan is not paid back in full by owner. The hard copy of the vehicle's title is then surrendered to the loan company until the loan is paid in full, including interest and fees. Auto title loans can be arranged using any vehicle type such as a car, truck, or motorcycle. These loans are popular because auto title loans sometimes require no credit check and you can typically be approved quickly.
How to set up an auto title loan?
The most common type of auto title loan is a car title loan. The person applying for the car title loan, also known as the borrower, the borrower owns the car entirely and has the hard copy of the title in their possession. The amount of the car title loan is mostly based on the blue book value of the car. Auto title loans are frequently up to 25% of the value of the vehicle. Other factors that help determine amount loan will be approved for will be your paycheck or proof of income. The loan company will most likely need to see the vehicle and identification to approve or deny a loan. Once a loan is approved payment is usually made in full 30 days later in some place’s loans are paid in installments where the borrower is obligated to pay only the interest until principle loan is paid off. Car title loans can be costly but, they are catered to individuals with bad credit or people in financial straits who need cash fast.
Fastest ways to get a title loan
Car title loans can additionally be prepared online, which makes the process quicker and easier. Title loans online expect you to fill out a secured application, then talk to loan expert, send in demanded papers, then you undoubtedly have the money that you need. The loan expert walks you through any state required documents and helps you appraise the vehicle over the phone.
Overall Benefits of Getting an Auto Title Loan
• Fast processing
• Uncomplicated approval
• Easy to qualify
• You keep your car and get the money you need
Facts to keep in mind before attempting to get a title loan
Always come prepared with ID, proof of income, and vehicle title. With all the proper documents loans are typically processed and allow you to leave with funds the same day. Lastly, be sure that loan payments are always made on or before the due date. If not, the lender can add supplemental fees to the balance, and you may even lose ownership of your car.