subject: Title-Loans: The Solution [print this page] Title-Loans: The Solution Title-Loans: The Solution
Title loans can be a great solution if you need a loan fast, you need a small loan, or you have bad credit, or no credit at all. You can generally get a title loan in no more than 15 minutes! Because title loans are tied to the title of your car (the title of your car being the asset), it is a very quick process. Credit is not even typically checked since lenders feel secure enough since they will have ownership of your vehicle if you do not pay back the loan. Sine credit is not checked, however, interest will be high, usually around 36%-65% interest is what you can expect to pay.
Since lenders use the vehicle as their asset if the loan is not paid, the value of the vehicle must be at least the amount of the loan. Generally, lenders will not let you borrow more than around half of what they could get if the car sold. So, if the lender ends up taking your car because you cannot pay back the loan, any extra money they make from selling your car they keep for their troubles. Usually, terms on title loans tend to be short, so you would normally be expected to pay back the loan in about a month, or just over a month. You can usually take out another title loan over and over again until your unpaid balances are paid off, but there is a limit on how many times you can do that, and each time you do that, you can expect to pay additional fees and more interest.
Although the interest rate is high on title loans, the loans themselves tend to be a small amount. In fact, you can get much smaller loans going through a title loan than you can with just about any other type of loan. With most loans, lenders do not like to mess with small amounts because they feel it is not a good use of their time, especially for someone with bad credit or no credit. Therefore, most lenders do not like to lend out amounts smaller than 1,000 dollars. However, with title loans, you can get a loan for as little as 100 dollars without any problems.
