Facts about Car Tile Loans

By: Tom W Jerry


Facing acute cash crunch? In dire need of immediate cash? Then a car title loan is something that might work for you. Your car does not just serve as a mode of transportation, but also acts as a valuable asset that can get you quick cash with minimal of hassle. The popularity of car title loans has grown to unprecedented levels over the years and here are the reasons as to why. It is the only loan option of its kind that commands low interest, offers easy repayment terms, gets fast approval and requires minimal of documentation; all this irrespective of past credit score. It is one of the easiest and quickest ways to get fast cash. Listed below are some basic facts that you need to know before getting car title loans.

What is car title loan?

Car title loan is a way with which a person can borrow quick cash against the title of his or her car. The loan is granted irrespective of past bad credit score and minimal income verification. The concept behind the loan is very much similar to that of payday loans. The loan stands for a period of 30 days; after the expiry of the term, borrowers both have the option to extend the loan period for further 30 days or repay the loan amount and get the car title back. The loan is available not just on cars, but other similar assets like boats, trucks, jet skis, etc.

Basic facts

The amount that you can derive from your car titles will be dependent on several factors. The lender will examine the value of the car, your ability to repay the loan, current income, and past credit history, based on which you will be offered a rough estimate.

Even though the maximum amount that a person can borrow from car titles varies, the most that a person can scrounge is up to 50% of the value of the car.

There are certain prerequisites that need to be fulfilled in order to be eligible for the loan. The applicant should be above 18 years of age, should be the legitimate owner of the car, and the car title should be clear with no prior debts on it. Furthermore, the applicant also needs to furnish a proof of permanent residency, income proof, and bank details.

Word of caution

If you have been under the impression that the title loan is virtually interest free, you are in for a major surprise. Every medium through which you try to get quick cash is bound to have some hitches. The rate of interest that is charged is generally higher than what you have come to expect from banks, credit cards, and even payday loans for that matter.

If you thought that furnishing your car titles is all that is required to get your quick cash, here is a catch that you were not aware of. Many lenders might ask for GPS tracking of your car and copy of your car keys.

In case you fail to repay the loan amount on time, do not expect any concession or leniency. In all probability, your car will be detained and sold off to recover the loan amount.

Before you make any decision, it is highly advisable to get the facts right from an expert so you can make a well-informed decision.

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