Return to site

Must-Knows About Title Loans

By Rowan Wagner

· loans,finance,automotive,car title loans,auto finance
broken image

A title loan is a type of secured loan where the borrower obtains a certain loan amount using the title of their car as collateral. All vehicle types are likely to qualify for a car title loan. So, how does a car title loan work? Whether you own a truck, classic car, sports utility vehicles, or even a motorcycle, all can get to qualify for a car title loan depending on your lender.

 

Car Title Loan is a Secured Loan

A car title loan is a type of secured loan, and like other secured loans, a collateral is required to get a car title loan in Florida, California, Texas, or anywhere in the United States. Car title loans near me, open today are available all throughout the US of A. In this case, the title of your car is what you will use collateral. Your lender will take possession of your car and also place a lien on it. This is done to enable the lender have a legal right to your car in case you default.

 

How Much Can I get?

When you apply for a car title loan, you can get a loan amount as much as your car is worth. Your lender will appraise your car and you will be able to get between 25% to 50% of the value of your car.

 

No Credit Checks

Most title loan lenders do not carry out credit checks when their customers apply for a loan. Your lenders are more concerned about what your car is worth and if it meets their minimum requirement to be used as collateral for the loan. This is why all credit types can qualify to get a car title loan.

 

You can still drive your car

When you get a car title loan, you can still drive your car around to wherever you wish. However, some lenders will install a GPS tracking device in your car.

 

It is easy to Secure

Since there are no credit checks when you apply for a car title loan, it is easy to secure one. Another thing that makes it even easier is that most title loan lenders now operate online, this means that you can apply anywhere you are, whether from your home or from the comfort of your office.

 

It has High Interest Rates

Title loans usually attract high interest rate that can be as high as 25% to 30% monthly. This accumulates to around 300% Annual Percentage Rate (APR). The reason for this high interest rate is to enable the lenders manage risk so that they can recoup their money as fast as possible. The longer you keep the loan, the more expensive the loan becomes.

 

Hence, if you own your car free and clear, with the title of the car in your name, you can apply for a car title loan when you are in need of emergency funds. This type of loan is one that offers people with quick and fast cash loans when they are in need.

 

Read more about interest rates from https://en.wikipedia.org/wiki/Interest_rate.

A title loan is a type of secured loan where the borrower obtains a certain loan amount using the title of their car as collateral. All vehicle types are likely to qualify for a car title loan. So, how does a car title loan work? Whether you own a truck, classic car, sports utility vehicles, or even a motorcycle, all can get to qualify for a car title loan depending on your lender.

Car Title Loan is a Secured Loan

A car title loan is a type of secured loan, and like other secured loans, a collateral is required to get a car title loan in Florida, California, Texas, or anywhere in the United States. Car title loans near me, open today are available all throughout the US of A. In this case, the title of your car is what you will use collateral. Your lender will take possession of your car and also place a lien on it. This is done to enable the lender have a legal right to your car in case you default.

How Much Can I get?

When you apply for a car title loan, you can get a loan amount as much as your car is worth. Your lender will appraise your car and you will be able to get between 25% to 50% of the value of your car.

No Credit Checks

Most title loan lenders do not carry out credit checks when their customers apply for a loan. Your lenders are more concerned about what your car is worth and if it meets their minimum requirement to be used as collateral for the loan. This is why all credit types can qualify to get a car title loan.

You can still drive your car

When you get a car title loan, you can still drive your car around to wherever you wish. However, some lenders will install a GPS tracking device in your car.

It is easy to Secure

Since there are no credit checks when you apply for a car title loan, it is easy to secure one. Another thing that makes it even easier is that most title loan lenders now operate online, this means that you can apply anywhere you are, whether from your home or from the comfort of your office.

It has High Interest Rates

Title loans usually attract high interest rate that can be as high as 25% to 30% monthly. This accumulates to around 300% Annual Percentage Rate (APR). The reason for this high interest rate is to enable the lenders manage risk so that they can recoup their money as fast as possible. The longer you keep the loan, the more expensive the loan becomes.