Financial worries are not only devastating but can also affect an individual’s well-being. Rather than sitting back and watch this happen, consider a loan request for a title loan.
Online title loans are easy loans that use the borrower’s asset as collateral. The loans are popular due to two main reasons. These personal loans are also know as a title pawn.
They are long term financial boons in times of need. You can apply online, make monthly payments and use your title as collateral.
Individuals can borrow as little as $100. Online title loans are also available for borrowers who want to avoid the long procedures when you apply for loan in-store.
Car title loans online are among the most common types of title loans. In this case, the borrower should own a car. Loan companies can lend up to 25% total value of the car and retain the car title as security.
The maximum amount offered by online loan companies for car title loan is $1000, although the amount can be higher depending on the lender.
Online title loans are repaid in a single easy payment or in installment plans for a maximum term of 2 years. If the borrower does not adhere to the loan agreement, the auto title loans company repossesses the car immediately.
Alternatively, the borrower will have the option of paying monthly interest only installments, which rolls over the borrowed amount until it is repaid in full.
Title loans mostly attract people who need almost instant cash and borrowers with bad credit. Title loans are mainly used for:
Title loans online are just like any other loan types offered by financial institutions. The only difference is that the loans specify the type of item to be used as collateral.
Online title loans also offer the same benefits as an in-store request. The word ‘title loan’ is used because lenders normally require a certificate of ownership for the property used as collateral.
Borrowers, on the other hand, are not restricted to using the property when and during the easy loan application process.
This is because it is only the title that is held, but the property remains with the borrower.
Property used to apply for title loans should be backed up by legal document as proof of ownership and should also be recognized by government agencies.
As much as the loan attracts a higher interest rate compared when you apply for other types of loans, they are intended to be short term and aid borrowers in emergency situations that require immediate funding.
Since lenders issue the loan for a short period, the rates are expected to be affordable compared to a mortgage loan that runs for a term of 30 or more years.
Title loans are also the best option for borrowers with poor credit score since the borrower’s asset is used as collateral.
Borrowers should be aware that if they do not stick to the loan repayment terms, the lender immediately takes over the possession of the titled property to recover the loan.
If you are in urgent need of cash, there are a number of loan options to consider. But when you own a high-quality asset, you can easily access immediate funding through title loans. Here are some of the loan advantages:
After your loan request form is approved, the funds will be channeled to your bank account within a few days. Individuals are eligible for title loans if they have a high-value asset and a steady income.
If you meet all the requirements, the process can take as little as 30 minutes.
You only need to complete the request form, take photos of your titled property and sign the paperwork. Some direct lenders will even approve the funds within 24 hours after request.
Many financial institutions will require the borrower to have a good credit history to qualify for different types of loans.
However, this is not a requirement with title loans. Every person is eligible for the loan provided they have a consistent income source and an asset as collateral. A soft credit check may be performed. You can get cash as soon as the same day.
When you request for a title loan, you have to give up your property title to the lender while repaying the loan. But this does not mean that your asset cannot be used during this period.
The lender will only use the asset as collateral. Motorcycle title loans are also available.
Regarding interest rates, payday loan and cash advance are quite expensive compared to title loans. This is because your property is used as collateral.
Therefore, high-interest rates are not charged since the asset is enough proof of payment
With title loans, borrowers know the total amount of credit to pay back, and by when the money should be repaid.
If you do not pay back in time you could end up with too many loans and need payday relief
Most borrowers repay the loan on their next payday. But if you have taken up a large loan, repayments can be done in several installments.
The value of your vehicle or other title asset is what determines the amount of money to borrow.
If you have issued a property title worth $10000, you are eligible to borrow any amount, provided it does not exceed the total value of the asset.
Whether you are paying bills or faced with emergency situations that require immediate funding, a title loan can be the best option for you to get credit.
The fast approval will relieve you of stress and give you peace of mind. Before requesting for the loan, it is also important to weigh the benefits and drawbacks that come with title loans.
But if a title loan is well managed, there is no doubt that your experience with the loan will be positive.