Are you considering getting a title loan? Title loans are a secure type of loan that involves using your car title as collateral. These loans are also referred to as term loans and are offered in the short-term or up to a maximum of 30 days. Generally, the amount of loan you can borrow is significantly lower than the resale value of your vehicle. This happens because you are getting a short-term loan. These loans are ideal for emergencies where borrowers require fast cash. For a car title loan to be approved, you need to submit certain documents to qualify. Some of these documents include your car title, your check or savings bank account, and some proof of employment.
There are many lending companies and financial institutions that offer title loans. However, you need to be aware of every tiny detail present in the terms and conditions of such loans if you want to get the best title loans. Here are a few things that you need to remember.
Before you can be an eligible candidate for title loans, you have to make sure that your car is completely or nearly completely paid off. The reason is quite obvious. Your car title will have less value as collateral if your vehicle is only half paid off. Thus, when you look at the title loan terms of each lending company, you have to know if they require your vehicle to be paid off in full so that it will qualify as collateral for such a loan. If you don’t meet this requirement, you should look for other short-term loans that you qualify for like a paycheck loan.
When you apply for title loans, you should know that the maximum amount of loan you can borrow varies. Because title loans are short-term loans, you should not expect to get a hundred percent worth of the resale value of your vehicle. One of the most important aspects of applying for title loans is the actual resale value of your truck or car. Most of the time, lending companies will offer you a loan value that is about 50{721a85b5f6e401e1a1d9129e4c0907e81d11a11c99a8b1c8b04c587685db515a} of the actual resale value of your car. There are times, though, that the figures can go as high as 75{721a85b5f6e401e1a1d9129e4c0907e81d11a11c99a8b1c8b04c587685db515a} of your actual car resale value.
When looking for the best title loans, full disclosure is vital. However, it is not often provided by some lending companies. Some lenders offer you full disclosure so that you can decide better if this short-term loan is worth taking. Meanwhile, some lenders don’t provide you full disclosure at all. In this case, you should be patient enough in reading and understanding all the terms and conditions associated with the title loan you plan on taking.
Once your title loan application is accepted by the lending company, you have to remember to pay off the loan when the term ends. Mostly, lending companies require borrowers to pay off title loans in full in a single payment. When the borrower is unable to pay for their title loan at the end of the term, the lending company may give another option. This other option is rolling over your loan, which means taking another title loan based on the title of your car.