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. Title loans are loans that uses the borrower’s asset as collateral. The loans are popular due to two main reasons. First, it does not require the borrower to have a good credit rating. Secondly, loan approval process is faster compared to other types of loans. Individuals can borrow as little as $100. Online title loans are also available for borrowers who want to avoid the long procedures when requesting for loans in-store.
Car title loans 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 loan companies for car title loan is $1000, although the amount can be higher depending on the lender. Title loans are repaid in a single payment or in installment plans for a maximum 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 instant cash and borrowers with bad credit. Title loans are mainly used for:
Title loans 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 loan request process. This is because it is only the title that is held, but the property remains with the borrower. Property used 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 to 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 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. But 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 lender 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.
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.
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 money to pay back, and by when the money should be repaid. 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.
There are several lenders who offer online title loans. This means that borrowers do not have to travel to physical locations to fill out loan request forms. You can easily request for the loan using a PC or mobile phone.
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.
After you have qualified for a title loan, a repayment plan will be presented. This will help you know when to make the loan repayments. Title loans can be repaid either by cash deposits or by use of debit cards. If a borrower wants to repay the loan at once, there will be no penalties incurred. If another person is mentioned as the titled asset owner, he/she must be contacted before the loan is approved.
Whether you are paying bills or faced with emergency situations that require immediate funding, a title loan can be the best option for you. 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.