Auto car title loans are known to be quite handy during tough economic times. For instance, if you have emergencies that require cash, these loans are great ways of meeting your expenses. Usually, most lenders do not lend an amount that is over 50% of the car value. You should note that these loans are secured. Before, you acquire a title loan, you should know that you will pay principal amount plus interest in one go. Therefore, you can be able to pay back the money.
Usually, you will be given more than a month to repay the loan. If you are unable to repay your loan within the stipulated timeframe, you are free to pay onetime interest fee and have your loan rolled over to next month. If you fail to do so, the lender has right to take the car and sell it. Therefore, as a borrower, you need to be quite careful.
- Proof of licenses and insurance
- You should be true owner of car
- The car should not have any outstanding loans against it
- Personal details are required during processing
The above are simple requirements, which you can easily process at ease. You do not have to be bothered again about your credit history. In fact, you can even get a loan within the same day. They do not require credit checking. Usually, lenders have a free lending hand as far as terms and conditions are involved. The car title loan is considered as a collateral for the personal loans. If you already have a car loan, you will find it difficult to process this type of loan.
How does it work?
After completing paperwork, borrowers are expected to provide car title and some keys to lenders. You will note that the amount of paperwork involved is very minimal and can be completed in less than five minutes. Although it sounds very easy, you need to hold your breath. The annual interest rates may turn into triple digits. Ensure you are in a right position to repay your loan amount promptly.
You will note that there are set limits. Some borrowers may decide to make full payment of principal amount plus the interest fees. Whenever you get to the limit, you will be required to settle the full amount or forfeit your car. There are several advantages and disadvantages of these loans. Therefore, it is up to you to choose right loan options.