Finding the best auto title loan, car title loan deals
You may have probably come across the word “auto title loan” before. Whether you are used to requesting for loans or not, you obviously would want to know more about an auto title loan or a car title loan. If you lack funds to cater for an emergency situation, one way you can use to access quick cash is by issuing your asset as collateral for you to access a loan. Requesting for an auto car loan is among the easiest ways to get access to quick cash and get out of a tough financial situation.
Life is full of surprises and at times, things happen when you least expect them. But you can easily get access to a loan any time you are financially challenged or in need or urgent cash to cater for emergencies. If you are in a situation that requires you to have extra cash, requesting for a loan with your car as collateral can be the best option.
Overview of car title loans
A car title loan, also referred to as title pawn, is among the forms of secured loan where the borrower issues the title of the vehicle to an auto title loan lender as security for the loan. The loan acts the same way as getting loans from financial institutions where the borrower has to issue an asset (either a house, savings account etc.) as collateral.
The main reason for issuing collateral is to secure the car title lenders in case the borrower defaults to repay the loan as per the agreed upon terms. Once it is clear that the borrower will not be able to repay the loan, the auto loan company will repossess the car to recover their money. The lender will only surrender the title to you once you have cleared all the outstanding loan (inclusive of the principal and accrued interest).
Once you understand how a car title works, you will realize that it is a better option to access cash compared to getting a loan in traditional institutions. Unlike loans from financial institution, you do not have to give up your vehicle to the lender. Rather, you can continue using the vehicle even after your loan is approved. The only thing that the lender will remain with is the loan title. But it is still important that you stick to the terms and conditions of the loan.
How does a car title loan work?
The car title loan request process is simple. For you to qualify for the loan, you need to own a car under your name. After that you can consult a car title loan company. An official from the company will check your car model, year, make and the car condition during an inspection process. The value of your car will determine the maximum loan amount that you are eligible for. While there are some companies that do not consider the borrower’s credit rating and proof of income, others will require you to be on permanent employment and have good credit as a guarantee that you will repay the loan. But most car title loan lenders do not impose these conditions. Provided that you receive consistent income in your account, chances are that your loan will be approved.
What is the maximum car title loan limit?
Generally, the car title loan company will offer you 50-60% total value of your vehicle. Your car model and competition between lending companies are some of the things that will determine the maximum amount of money you are qualified for.
Interest rates imposed on title loans vary from one lender to another. It is therefore important that you do background research and select a company with the lowest interest rate, flexible terms of payment and no hidden costs. Payment plan can also be negotiated with the lender.
How to apply for a car title loan
The loan application process is simple, fast and easy. Borrowers also have the option of applying for a car title loan online. You can also call the company and apply for the loan over the phone.
When can you apply for a car title loan?
Some of the situations that can require you to apply for an auto title loan, car title loan are when you are in need of cash to start a business, pay bills, school fees or in emergencies. As long as you need money to cater for your personal needs, getting a loan over your car is a wise decision.
Qualifications for a car title loan
Once a car inspection is complete, you will be halfway to having your loan approved. The loan you are eligible for will be determined by the value of your car. The approval process is also fast. Most lenders approve the loan within 24 hours but the best lender should be able to approve the loan within minutes. You also need to have an original government issue ID.
Advantages of car title loans
- Fast approval process
- You can access the loan while still using your car
- Borrowers with bad credit score can also apply for the loan
Important things to note when applying for the loan
- When a car title loan is rolled over, the borrower may risk paying more money
- The lender will repossess your car once you default payments
Whether a car title loan is the best option for you depends on a number of factors. For instance, people are different, and so are their needs. While requesting for a car title loan can be the best option for most people, it may not work well for others. You also need to consider your priorities. In circumstances where you need quick funding, a car title loan can come in handy.
There are also alternatives to a car title loan, but some of them may require long and demanding process. If, for instance, you apply for a loan in a financial institution, it can take weeks for the loan to be approved, which may not work well for borrowers who need cash for emergencies. If you have a bad credit, chances are that your loan request form will not even be approved.
Rather than going through all this hassle, you can easily hand over your car title and get access to quick funds with flexible repayment terms. However, it is important that you only request for the loan once you are sure that you will be able to repay and avoid losing your car title.