A Car Title Loan To Ease Your Cash Worries
You have determined that you need more cash that a payday loan will grant you
, so you decide that a title loan might just be the right answer. Title loans have the same features as a secured loan, except for a single aspect.
While secured loans do not explain the type of collateral that will suffice it, title loans specifically require cars or any other vehicle to act as collateral.
Vehicles may be used to guarantee secured loans too. Secured car loans, for instance, offer borrowers money to help them purchase cars. In this case, either the new automobile or an older automobile may be used as collateral.
Thus, secured car loans too may be termed as a title loan. Title loans are named because of the lenders demanding the certificate of ownership of the vehicle, known as the title.
The borrowers are not restricted from making use of the vehicle during the period of the loan, because only title is held by the lender. Title loans are generally taken for a shorter term.
Like other short-term loans, title loans too are expensive owing to the higher interest rate. Title loans fulfill short-term needs. Immediately as the borrower gets hold of resources, he pays the title loan and recovers the title to his automobile.
Therefore, the cost that a person has to incur in terms of interest is lesser. However, a clear title on the vehicle is the prerequisite for such loans. This also helps in accelerating the process of approval of the loans.
These loans are customarily faster approved than the regular loans. As soon as a borrower approaches the lending organization, the loan is sanctioned after making some necessary checks regarding the credit history of the borrower, and whether he has a clear title to the automobile.
The borrowers must however know that inability to pay the title loan can lead to a permanent loss of the vehicle. The amount left after the paying the unpaid balance of title loan may be claimed by the borrower.
Although auto title loan lenders require a source of income for repayment, they do not care where it comes from as long as it's regularly occurring, consistent, and stable. The good news is that the income does not have to be a job.
Some good, stable sources of income for repayment of an auto title loan acceptable to many lenders include: a paycheck from a job, monthly retirement pension payment, Social Security retirement benefit payment, Social Security disability benefit payment, Unemployment insurance benefit payment, insurance annuity payment, and proof of stable income from self employment (i.e. tax returns, bank statements, PayPal statements, etc.)
The borrower may be asked to hand over the vehicle at a specified date and time, thus giving him an opportunity to remove his belongings from the car, that are not a part of the car pledged.
The process of obtaining assistance through title loans is no different from the other loans. Borrowers have to be watchful for lenders who charge exorbitantly high rates of interest.
One must take title loans only from the licensed lenders who are authorized to offer these loans. They may even undertake checks to ensure that these lenders have the necessary credentials to offer title loans.
Lending organizations have title loan deals advertised on their websites. Alternatively, the borrower may contact the lending organizations personally. This will however be an arduous task since the number of lenders in the United States has increased significantly.
Most online lenders have links with other many other lenders. All these lenders get to suggest deals matching the borrowers requirements. Since the borrower is under no obligation to accept these deals, he always has a choice.
Vehicles are important assets and cannot be risked to any deal without considering its various aspects- both positive and negative. Discussion with independent experts, and extended research, will surely lead borrowers to the best deal title loan.
by: Jack Landry
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