Car Title Loans
A car title loan is one of the easiest ways of getting quick cash to offset your emergency financial obligations. Whether you need to pay, medical, bills, fix your car or help a friend or family who is in need, car title might just be your best bet; it is easy, fast and straightforward to secure a loan using the title of your car as collateral. It is a type of short-term loan that is similar to a payday loan.
What is Car Title Loan?
A car title loan is a type of secured loan that requires the borrower to use the title of their car as collateral in order to obtain a cash advance that will be paid off over an agreed period of time. The lender places a lien on the car, the lien is removed as soon as the borrower pays off the loan completely.
How Does a Car Title Work?
A car title loan works the same way like other secured loan. The borrower submits the required document for evaluation and the car is evaluated to determine its current market worth, it is based on the worth of the car that the borrower will know how much loan amount he or she can get. Usually, the loan amount that can be gotten will be a certain percentage of the value of the car. Some lenders give as much as 40 – 50% of the value of the car as the loan amount.
The borrower and lender enter into an agreement on the terms of the loan; they agree on the duration, and the periodic payment can be two weeks or monthly. The longer the loan period the higher the interest rate. Hence, it is recommended that you should keep your loan period as short as possible to avoid paying high interest rates.
Advantages of Car Title Loans
- It is easy to get one as you can apply online from the comfort of your home or office.
- It does not require any credit check
- You can still get to drive your car while you pay the loan.
- You can negotiate your payment terms with your lender; it is that flexible.
- You can get the money the same day.
Will Bad Credit Disqualify Me?
No!!! Bad credit will not stand as a barrier to your chances of getting a car title loan as your lender is not concerned about your credit history or credit profile. They assess you based on the value of your car and your ability or capacity to repay the loan. So it doesn’t matter whether you are bankrupt, facing foreclosure, or you have bad credit or no credit history at all. All these will not prevent you from being approved for a car title loan when you apply at Car Title Loans.
The interesting part of car title loans is that your car will not be impounded, you can still drive your car or use it for your business while you pay off the loan. It is easy and flexible.