Car title loans are same like home equity loans. Like home equity car title is the market value of your car minus outstanding amount you owe. It is also called an auto title loan, pink slip loan or simple title loan. In this, borrower can use his automobile to keep his collateral in order to borrow secured loan from his lender. This loan is safe for both borrower as well as the lender. Title loan
borrowers must allow lender to place lien on their car title by temporarily handing over car documents to lender in place of total loan amount. When lender receives his money back at end of loan period he releases lien from borrower’s car and return to its lender. If borrower fails to pay back, then lender can possess his vehicle or even sale to compensate his loss.
What are Title Loans?
Car title loans are lent at high interest rates as compared to other credit card options and are available for short term financial matters. Usually Lenders do not check credit history of borrowers; rather they do verify value and present condition of the vehicle to be pledged by borrower. Most of these loans can be acquired within 15 minutes. They are very easy and convenient to apply as well as acquire. Minimum amount lend is $100 and maximum is up to 75 percent of present value of your car. It is very necessary that amount borrowed must be less than current values of the vehicle. It is also very necessary that borrower should be employed and should have at least one source of monthly income. One exciting feature is that title loans do not demand for any down payment from the borrower.
Cover Urgent Financial Journey with Car Title Loans
Requirements to get Title Loan Sanctioned
1. The basic requirement for every legal service is that a person must be 18 years old or above.
2. You must own a car that you can give to lender as collateral. Make sure that it should be free of all liens.
3. You must be individual owner of the car. Title Loans are not available for multiple persons on single title.
4. You should be having a steady source of income. It is not necessary to be employed to borrow car title loan.
5. A person must be having a working bank account that will act as a router for every loan transaction.
6. You must have a proof that you are not a debtor and are not involved in any bankruptcy case.
7. You must have a valid driving license issued by government.
8. You must have government id witnessing your citizenship.
Documents needed by Loan Company
A car title loan company will need every legal detail related to you and your vehicle. Following are they:
1. Borrower’s Name, Address, Phone Number.
2. Make, Model and year of your car.
3. Proof of insurance coverage.
5. Employment information of the borrower.
There are not as such any disadvantages of these loans. They may arise if borrower fails to understand contract terms and don’t make timely payments. Worst consequences may be debt piles and loss of vehicle. To avoid every negative effect, read and understand contract terms thoroughly and make sure to do repayment in allotted time.