There may be times when you are strapped for cash and have thought about selling your car. However, instead of selling it you could easily get a car title loan. Today, it is very simple to get car title loans online, and these are fast. You can secure a car title loan by just handing over the title of the car as collateral. There is zero credit checks required and you can get cash in a jiffy.
What is a Car Title Loan?
A car title loan is a short-term loan where the borrower’s vehicle is used as security. The borrower needs to be the lien holder of the car. The borrowers need to surrender the hard copy of the lien in exchange for the loan amount. Most title loans can be taken out in 15 minutes or less for an amount as small as $100, while lenders such as banks usually lend larger amounts starting from $1,000 and require longer period for approval.
How do car Title Loans Work?
To borrow against the title of your car, you must be the owner of the car. If you have financed your car purchase through a loan, that must have been paid in full. However, some lenders do allow you to borrow even if you have a standard auto purchase loan, which can range from $100 to $5,000. The amount that is lent is based on the current value of the vehicle, so the higher the value; the larger will be the amount. However, you may not get the full value amount as a loan, but around twenty five percent to fifty percent of the car value as a loan, as it entails high risk. But the fast cash should help you out in case of emergencies, visit page.
Title loans are for a short-term and are due to be paid within the next 15 to 30 days. If you are unable to repay within the stipulated time, you can” roll over” the loan. Instead of paying back you get a new 30-day loan, where the principal is inclusive of the interest and principal of your old loan. The cost of rolling over can be high, so you must try to pay on time.
Like any other loan, there is a risk of non-payment and in that case, the lender can repossess your car. If you are unable to make the loan repayments, the lender can sell your car and keep the money that makes up the principal and the interest accrued on it. The actual value may be the same as the amount the lender sold it for so he can recoup the money.
In order to find lenders, you can simply search online for title loans near me. You will find plenty of lenders as well as aggregators who would be more than willing to help you out.