All that you need to know about car title loans

car title loans

Car title loans do not need any introduction. Such loans have helped many individuals with credit in emergency situations, but still car title loan companies get only criticism in exchange. If you wish to go for such type of auto loans, all that you need is your own car.  You need to pledge your car title in exchange for loan amount, and once you repay that loan, your car title would be changed back to your name by the lender.

Medical emergencies can force anyone to look for credit on an urgent basis. Banks can take several days for loan processing; credit cards cannot be used unless there is sufficient balance in the same. So, in such cases, payday cash or car title loans can prove to be the best option.

car title loans

What is the procedure?

As mentioned earlier, you need to be the owner of the concerned vehicle that you wish to get loan against. Terms and conditions may vary from one lender to the other. Some title loans companies do not offer loans on cars that do not have their title clear because of existing loans. But some financial institutions do offer title loans for vehicles that are under standard auto purchase loan.

How much loan can you get?

The amount offered by the lender completely depends on the condition of collateral vehicle. If your vehicle is in good condition, you can expect higher loan amount. It is advisable to not to expect lender to lend as much as the car’s current value because they prefer to play safe and hence may offer few hundred dollars less than your vehicle’s market value.

Loan duration

Most of the car title lenders offer loan with duration of one month, so the entire loan amount needs to be repaid within one month. If you fail to do so, you can simply roll over the loan and get another thirty days period. However, rolling over can prove to be expensive because of fees involved in the same. Plus, rolling over is not allowed in some states.

You may lose your vehicle if you fail to repay on time

In exchange for loan amount, you need to transfer your vehicle’s title on lender’s name. So, if you fail to repay on time the lender can seize your vehicle and sell the same in order to recover their loan amount.  There is no guarantee that they would sell it for good amount because their aim to just recover their loan amount.

Losing your car can lead to more trouble as you won’t be able to reach your workplace on time, and may face difficulty in day-to-day tasks. So, experts recommend people to think twice before going for title loan.

If you are looking for genuine car title loan provider, you should consider getting in touch with Valdosta title pawn (Money Depot). The company also offers to pay off other title pawns. You can get rid of your old loan and get new one with lower payments.

Related posts