A Complete Guide on Car Title Loan


Car Title Loans have become one of the most popular ways to generate instant cash. People are becoming more aware of its benefits, resulting in its increasing popularity. Companies offering a car title loan understand that there are instances that people will require fast cash. Whether you have to settle an unexpected bill or need additional money for your expenses, an auto title loan is your best option.


What is a Car Title Loan?


Auto title loan

The amount of money you can access on your car title loan depends upon the market value of your car. It means that a vehicle with a more excellent value will borrow a higher amount of money. However, you should not expect that you will be able to squeeze out the full value of your car. It is also a great option for those looking for a short-term loan. The auto title loan will typically be due within 30 days. Therefore, you will not have to worry about the long repayment terms. If you do not have the necessary funds to secure your loan within 30 days, you do not have to worry since the repayment terms can be extended. The company will roll over the loan, meaning you will have a brand new loan.


The Benefits of Car Title Loan

 car title loan

Here are some of the benefits you will enjoy once you choose to apply for a car title loan. Hopefully, it will help you determine if the auto title loan is the best option to receive fast cash.


The Easy Process


Compared to the other loan programs, you will not be required to complete an extensive and complex process. The whole process from the application to approval is convenient and quick. In some cases, the entire process of applying for a car title loan can be completed in as little as 10 minutes. After submitting all the required forms, you will receive your required amount of cash on the same date.


No Credit Check

 Auto title loan

A car title loan is also a great option for those with no or poor credit ratings. The loan is based on the collateral, which is your car, making it easier for you to secure fast cash without the intricate credit check. However, there are some instances when you will be required to show proof related to your monthly average income.


You Are Free to use Your Car


When applying for a car title loan, the agency will still allow you to drive your car. It only serves as collateral should the borrower fail to repay the loan. After repaying the loan, the car title will be returned to the owner. You will get the amount you need for your emergency and continue to enjoy driving your vehicle.


Finally, the Car Title Loan is less stressful than other types of loan. It is designed in a manner that will address the needs of a wide range of audiences. There is also a spectrum of vehicle makes and models that you can place on collateral.


Tips to Acquire the Best  Car Title Loan

 Auto title loan

Are you trying to find the best loan that will finance your business? Or perhaps you are looking for an immediate source of cash to help you get through these trying times. The standard type of loan will not always be convenient. There are many problems that you will encounter during the process. The car title loan is designed to overcome all these problems. It involves a lesser stringent process that allows the borrower to access quick cash. It is a secured type of loan where the borrowers use their vehicle as collateral. However, before you apply for the auto title loan, here are some tips that will help you avoid the common pitfalls.


Understand the Payment Options


Before you decide to apply for a car title loan, you need to understand first the repayment terms. You may accomplish this by using paycheck or direct transfer. Apart from this, you will also need to determine the extent of the repayment terms. Like the standard type of loan, the extended repayment term should result in a lower monthly payment. However, you might end up paying more on the finance charges. Ensure that the loan will be valid in the shortest amount of time.



 Auto title loan

Regarding the standard auto title loan, there are instances when settling the repayment of the loan early would result in a penalty. If you obtain the car title loan that is outstanding for a 30-day period, it likely comes with an early repayment penalty. It means that if you decide to repay your loans early, you will have to settle the amount mentioned in the contract. Nonetheless, repaying your loan early will help you save thousands on interest.



The Application Process


There are car title loans requiring you to complete the application form online. Others will require the phone verification to complete the process. Normally, it will take less than an hour to finish the application. It will help you save a lot of time. You will also need to determine if the lender will perform a visual inspection before your application is approved. This inspection will be conducted before you receive your check, in most cases.


The Type of Car

 Auto title loan

While there are car title loans that will only accept vehicles manufactured after 2005, there are still others who will admit the cars manufactured in the late 1990s. There are also instances that the lender will consider the car mileage. It would be essential to inquire about the mileage restriction of the lending company before applying for the auto title loan.


Finally, when applying for the  Car title loan, make sure that the company will allow you to keep your vehicle. In most cases, the lender will allow you to continue driving the car and will only require you to surrender the title. However, it is still best to be clear on this.


Frequently Asked Questions about Car Title Loan


When you need immediate cash to cover your unforeseen expenses and are short on money, applying for a loan would be your best option. However, if you can't borrow money to your loved ones or have a poor credit history, enrolling for the standard type of loan will not be possible. Using your auto title as collateral will allow you to access an easy loan through a car title loan. If this is your first time to hear about auto title loan, and you want to know the facts related to this loan, here are some of the answers to the frequently asked questions about this financing option.


How Does Car Title Loan Work?

 Auto title loan

The car title loan will work similarly with any collateral loan. Regarding the auto title loan, you are using the title of your car as collateral. The lending agency will determine the amount of money that you can borrow depending on the vehicle's market value. After you pay off the entire loan, the lender will return the auto title. Once you use your vehicle as collateral, the lending agency should still allow you to use your car. They should only keep the title of the vehicle until such time that you settle the cost of the loan.


What Happens If My Car Title Is Used As Collateral on another Lending Company?


As long as your vehicle has enough equity, you will still qualify for a car title loan. There are instances that the lending company will be willing to entertain your request even if the car is used to apply for a loan from the other lending company. The lending company should understand that the needs of its audience will be unique. You need to talk to them to understand the best course of action.


What are the Average Interest Rates?


The interest rate will vary widely depending on the lenders. In most cases, they will prefer a monthly interest rate over APR. If you think that your loan will be outstanding for at least a year, you can simply calculate the annual interest rate. For instance, if there is a 20% interest rate per month, this means that you need to settle a 240% annual interest. It may be a bit high, but borrowers are still willing to choose a car title loan considering the convenience and the simple process.


Do We Need to Complete a Credit Check?

 Auto title loan

The lenders will not commonly require a credit check to approve your car title loan application. This is because you are using the car title as a guarantee. The value of your car is what matters most in this loan, and they will not necessarily pay attention to your credit history.


Finding a good lending company that offers great terms on Car Title Loan is all about research. You need a lending company committed to providing the best option to the borrowers.

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