Car title loans can be convenient during the times of financial problems. If you’ve an emergency need for cash, car title loan is the best way to meet your expenditures. But, the lenders won’t be able to lend the borrower an amount that is higher than 50% of the value of the car. This means that car title loans are secured. The borrowers have to pay the whole principal amount with interest fees. Therefore, ensure you’ll be able to repay this amount of money as at when due. If you can’t do this, make use you give it a second thought before you apply for car title loans. The period given will not be more than a month in most of the cases.
If the borrower is unable to repay the loan within the stipulated period, they can pay a onetime interest fee and roll over the loan amount to another month. If the borrower fails to do this, the lender will repossess and try to sell the vehicle. Therefore, the borrowers must be very careful while applying for car title loans.
Requirements for Car Title Loans
• You must have a steady income.
• The VIN details are required at the time of processing loan.
• Proof of insurance, license.
• You must be the owner of vehicle.
• There should not be any liens on the vehicle.
These are simple requirements for applying for car title loans and it can be processed at ease. People do not need to be bothered about their credit history. Loans provided at such short time ntervals do not involve credit checking and the loan is secured. Car title loans companiescan
walk you throughthe terms and conditions of the agreement. A car title loan involves making use of your vehicle as collateral for your personal loans. When you already have a car title loan, things may become very difficult to process another title loan.
How Does It Work?
After the paper works are completed, the borrower must hand over a set of keys and the car title to the lender. There are little amount of paper works involved which can be completed within a few minutes. It is very easy right and approval is quick. The annual interest rates will run into multiple digits. Therefore, make sure you’ll be in a better position to repay the loan amount quickly. This seems to be ridiculous.
For a loan of $1000, you may end up paying up to $250every month as interest charges. Also, some may decide to do the balloon payment at the end loan period. There are some limits available on the rollover. Once when you reach the limit, you must pay the amount you owe at once or forfeit the vehicle. There are many advantages and disadvantages involved in this type of loan. It’s up to the borrower to decide if the loan is suitable for him or her. It’s ideal to think twice before applying for the loan.