Have you ever thought of how you can get cash using your car title instead of your credit score or bank loan? Luckily for you, this article will give you the information you need to know concerning car title loans. You’re probably wondering how this is even possible.
Well, thanks to a massive number of companies all around the world, you can cease the car title for a while in exchange for money. In this case, you allow the lender to use it as collateral. Having so many responsibilities in our day to day life can be so stressful, however, a car title loan can help ease this stress.
All you have to do is surrender the hard copy of your car title in exchange for a loan once the line has been placed.
1. The Application Process
Applications can be done online or at any car title loan lender store near you. However, note that the amount of cash you need or your ability to repay and even the value of your car is determined by the size of your title loan. Some lenders may offer car title loans even if there is no clear title and these loans can be offered between a funding amount of 25% and 50%.
For the application to be completed you will need to present the title of your car, proof of insurance, photo identification, the ccar and payment of additional fees required by the lender. Most of these loans are short term, probably within the range of 15 to 30 days. These loans have high interest rates and they range on an average from $100 to $5,500. Note that it’s possible to borrow against your car while you’re still paying off a standard auto purchase loan.
2. Loan Payment
There are several ways you can pay for this kind of loan. It could be in person, an automated repayment system or even online. However, these title loans can be quite expensive as lenders tend to charge 25 percent per month to finance the loan or when the lender offers to roll over the loan into a new one. A roll over happens when you can’t pay off the loan within the agreed period of time and this can be dangerous as you may end up paying more in fees than the original amount you borrowed.
3. Online Benefits
Let this not scare you away as there are a lot of benefits you can get from taking this kind of loan. For starters, you can get quick cash and it is faster. By filling up an application online the process can begin right away. You don’t have to wait in line or think about the prolonged paperwork. It’s easy and fast. One of the best things about applying online is that you can get a quick approval of your application probably within 24 hours.
Keep in mind that getting a car title loan doesn’t mean that you can cease to use your car unless you fail to pay back the loan. As soon as the loan has been paid off, the title is given back to you and you can get another loan if you want to.