You may have heard a lot about car title loans from your families or friends around you. This is already popular loan you can apply if you are in need of quick money for short time. Quick approval is what makes people prefer this type of loans than others. However, there is also minus point, which is high interest rates or in simple word, it’s costly. Your vehicle is your collateral if you are applying title loans. You need to hand over the title of the vehicle to the lender until you can repay the loan. The good point is, this loan is useful for emergency such as when you need costly medical treatment. The bad point is, you risk losing your car if you cannot repay the loan.
How it works
To apply car title loan, you need to make sure that your car has high value especially if you need high amount of money to borrow. You need to have enough equity in your car. Some lenders and situs poker online http://184.108.40.206 also require you to be free from other loans if you want to get car title loans. The car title loans can range from $100 to $5,500. It is usually based on the value of your car to decide the exact amount of money you can borrow. Most lenders will give you 25%-50% of your car’s value. Each lender has different term and condition and they also have different interest rates ranging from 25% to over 100%.
You should know that title loan is a short-term loan which means you should repay within two weeks to 30 days. Therefore, you need to make sure that you have plan to repay even before you apply for the loans. If you don’t have any plan, you risk losing your car. Of course, there is a ‘rolling over’ where you can get another 30 days to pay your loan off. However, it comes with higher interest rate which can makes it more difficult for you to pay the loan with the increased amount of money.
When you are unable to pay the loans, the lender will take the possession of your car. They will sell it and keep the share for themselves. Therefore, it is highly advised to find the lenders that can give you plenty of time to repay, lower interest rates than others, as well as efficient works in processing your application.