Car Title Loan Guide
A lot people are currently facing challenges one way or the other as a result of not holding cash at hand. And if the issue of not having money to solve the immediate issue currently happening, it might lead to more critical problems. Some people are ready to drop their cars as collateral to borrow money when they are in desperate need of money. Fast Money Car title loans credit system is made available for this set of individuals. You can use money obtained by this means to settle your personal needs, use it to fund your education or make use of it to help yourself get out of medical emergencies.
What Does a Car Title Loan Truly Mean?
According to Investopedia, car title loan is a loan that needs you to put down one of your assets as collateral. Two things make this credit scheme unique. The first one is that the credit rating of the person in urgent need of money is not considered in car title loan. The second one is that the whole process of securing the loan is very fast. The lender you go to meet to borrow money from will place a lien on your car immediately the agreement is signed by you.
Car title loan is said to be a secured type of loan unlike the open-ended loan, closed-ended loan and unsecured loan practiced by other financial institutions we have. The lender will officially become the owner of your car if you fail to return the borrowed money. And to my best knowledge, lenders always sell the borrower’s car to recover back the money given out as a loan.
The Story Behind Car Title Loans
Not until 1990s, car title loans didn’t receive the attention given to it in our world today. Car title loans and PayDay Loans got a lot of things in common. From that time till date, car title loans have been increasingly growing and this is as a result of the opportunity it gives people to be able to borrow money despite being in a very bad financial state.
Twenty states in the country have given license for people to practice it. These states are Mississippi, Louisiana, New Mexico, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin, Ohio, Delaware, California, South Carolina, Illinois, Alabama, Arizona, Georgia, Nevada and Kansas.
The Summary of Car Title Loans
This secured type of loan requires that you submit the title to your car and other important car title loans requirements as collateral to the person or organization willing to provide you money in form of loan so that you will be able to settle the immediate urgent needs of yours. Car title loans and the loan conventional banks give out have some little similarities in common. In the case of loans given out by conventional banks, you will have to offer your house as collateral (in most cases) before you can be given the loan. The collateral secures the bank against the risk of failure to pay the loan and the bank could go ahead to sell the house to recover the money back if you fail to pay back the money loaned out to you.
The laws under car title loans support that a lender must return your car back to you when you fully payback the money you owe. Not only will the lender do, the lender must also remove the lien placed on your car.
Other names you could call car title names are car identity loan, auto title loans, pink slip loan, etc.
The Process Involved in Securing Car Title Loans
Before you think of taking car title loan, you must have owned a car or better still have more equity in the car. The next thing for you to do is to visit any car title loan company you know and tell them your interest in taking the loan. One of the company’s employees will proceed in accessing your car and give an estimate of its worth. If the estimated amount equals the amount you seek borrowing, your application will be processed otherwise they will tell you No. The lending agency will also continue your application if the estimated amount is more than the money you want to borrow. Once all these are done, you are provided with a paper to sign the agreement to show you have accepted all the conditions the company places on it.
A Car Title Loan is not Depended on Brilliant Credit Scores
Car title loan organizations give out loans without performing credit checks. They won’t even ask about your employment status or question you if you have a stable source of income as some other financial institutions ask this to know if your income will be able to pay back the loan. This feature by car title loan makes it stand out, unique and very easy to acquire.
The whole process involved in car title loan acquisition might last for just about an hour. It is very fast; it does not require too much time so far the borrower is fully prepared and the lender, on the other hand, is ready to give out the money. This fastness is what some other financial institutions owners cannot beat their cheat to.
How Much Can I Borrow?
A lot of people might have asked themselves this question before finally going to get the loan. It is commonly known that the minimum amount you can borrow is about $2500 to $50000. The next thing for you to do is to ask yourself if your car is worth $2500 or more. The reason is because car title loan companies won’t answer your loan offer request unless the value of your car meets the money range earlier stated here.
What is the Interest Rate Like?
Car title loan companies are very expensive to obtain. The interest rate these lenders offer borrowers is far too high compared to what other financial organizations are demanding. Some lenders charge as high as 25% as interest rate. This fee together with the money loaned out and some other charges (if included by the lender) are summed together by the lender to be paid back by you on a particular date.
If you are not comfortable with the interest rate of a lender, continue with your research so that you can see and meet the best lending company for you in terms of interest rate.
I would advise you to only go to car title loan companies that will explain to you clearly everything you need to know about making the right financial decision and that will also offer you a good car title loan experience without hiding any charges from your view.
The Necessary things to know About the Payment Plan of Car Title Loan
Each of the car title loan companies operate on a different payment plan. All depends on agreements signed between the borrower and the lender. A borrower might agree with a lender to pay back the money bit by bit before the due date or there could be agreement between the two parties having relation to the borrower to only pay the loan back at once at a certain period of time.
You must also note that during the course of you trying to source for the money to pay back, you won’t have access to your car. This means you will be unable to use a car to go to work if that happens to be your only car. This situation of you trying to board a cab to work because of the agreement you accepted and signed, pending the time you fully return the borrowed money, might not come in a convenient way for you. The only solution would be for you to accept reality and adjust to make things right for yourself.
The lender will not be able to give you another loan because you must first pay back the current one you are owing. Another point is that the longer you delay the complete payment of the money, the more your debts keep increasing. This is another reason to say that this type of loan scheme is very expensive to acquire. This increment in amount to be paid when a borrower fails to return the borrowed money at the speculated time will continue to happen because car title loan system is a risky investment that is only active for a short period of time.
What are the other things I must have to be able to obtain the loan?
The other required things you must possess to collect a car title loan are given below:
· A utility bill
· A mortgage statement to show where you are currently living
· Phone number
· Full name
· The address of where you are living
· A valid driver’s license
· A valid Government ID Card
· And some other important things that you need but not on this list
We believe you have found this Car Title Loan Guide helpful one way or the other. We truly hope you find it very easy to understand so that you can easily make adequate use of it when the right time arises.
Areas We Service:
- Alabama Title Loans
- Arizona Title Loans
- California Title Loans
- Delaware Title Loans
- Florida Title Loans
- Georgia Title Loans
- Idaho Title Loans
- Illinois Title Loans
- Indiana Title Loans
- Kansas Title Loans
- Kentucky Title Loans
- Michigan Title Loans
- Mississippi Title Loans
- Missouri Title Loans
- New-Mexico Title Loans
- Ohio Title Loans
- Oklahoma Title Loans
- Oregon Title Loans
- South-Carolina Title Loans
- South-Dakota Title Loans
- Tennessee Title Loans
- Texas Title Loans
- Utah Title Loans
- Washington Title Loans
- Massachusetts Title Loans
- Minnesota Title Loans
- Virginia Title Loans
- North-Carolina Title Loans
- Nevada Title Loans
- Wisconsin Title Loans