As a borrower you have many choices when it comes to choosing an online lender. Online car title loans are useful loan option that you may come across online while seeking quick funds. If the popularity aspects are taken into consideration, then these options do stand their ground as the ones which are a good choice for borrowers who need cash.
Let’s breakdown the different aspects of car title loans, which you should know in detail before you will be heading for this option.
What is it all about?
These financing options, which we know as car title loans, happen to be short term loan options. To qualify for same day funding, you will need to take some time and submit an online application. They are quite coveted loan options in these days because you can get access to these loans during any sort of emergency situation which you might have been thrown into. In case, you are already running into a debt situation and looking for a quick respite, you can definitely give a thought about these options. Though it sounds like too easy to avail quick funds with the least existence of the red tapes on them, it would be good if you manage to learn more about the important facets of these loans.
If you make it a point to compare lending rates, you will surely find that car title loans assume a role of significance in the entire scenario of loan market. The title of your car will be playing a pivotal role here.
Use your vehicle’s title as collateral.
You need to know about the real value of the car you own. It’s the collateral which is going to come handy for you in future so you should really be careful as in keeping it in a pristine condition. The lender would definitely look into the state it is in before he gives you the loan amount. Therefore, it’s a responsibility on your part to keep the documents related to the car intact. You will need them to procure the loan amount.
How will you apply for the loan?
Now, let’s get a reality check on the actual process which is going to follow. Here’s the detail related to how things would actually work in order to let you claim the loan amount. First things, before you are going to ask for a car title loan, you need to have enough documents to prove that you own the car which you claim to be yours. You need to have the pink slip with you. You might have to hand over the car title or the pink slip if the lender asks for it. After having a verbal discussion with you regarding the loan, the lender might visit your place to examine the exact condition of the car. If the lender finds the car OK after the evaluation, you are good to go for the loan amount. Once, things are finalized and you have obtained the loan, a lien might be imposed on the car from the side of the lender.
Understand your state laws.
If you really want the car title loans to make inroads into your life, then it’s really important for you to get a hang of the rules in the first place. The fact is that car title loans are subjected to divergent laws in various states. The rules prevailing in one particular state would not be applicable to another state for sure. So, it is more than a mandate that you get to know the different rules of car title loans which apply in different states. You need to make yourself abreast of the crucial specifics pertaining to the fees, charges which are going to apply on the loan, and details related to repossession of the car title etc.
No credit check.
If you have got your car in a pretty good condition, then you can rest assured that you are seriously not going to get through any sort of stringent credit check. The reason is it’s your car title which will be getting you covered. There are many who find these loan options up to their taste as they don’t have to go through credit checks. It’s actually a very convenient aspect associated with the loan option. Given the fact that you have total ownership of your car along with some equity (no debt on your car) you will be entitled to avail yourself of at least 25% to 50% of what would be the valuation of your car.
How will you repay the amount you borrowed?
Now, we need to talk about something which is presumably more important than even getting the loan approved. We will be talking about the repayment options. You need to ensure you have planned at least some steps to repay the loan amount even before you take the loan. Obviously, you will be given a timeline to repay the loan. You can choose to pay it back in person if that should be convenient for you. Or else, you can also do an online fund transfer. Checks will also work in the repayment process. However, if you can’t make it within the time frame given by the lender, you might have to opt for the Roll Over. However, as you choose to do so, the rates are definitely going to get revised.
Make sure that you will be doing your best as it comes to the comparison of the specifics of the lending rates which are currently prevailing over the market scenario. When you apply for the loan amount, you really need to ensure that all information furnished by you, stands as correct and authentic. The information should be up to date as well. By doing so, you will make sure that you stand a chance and bag the loan amount to your advantage. You should also take very good care of the specific documents which prove you as the veritable owner of the car.
So, do you think the information, which we shared, would add some value in your situation? If you find the information useful, please let us know. For more value added updates regarding different loan types and formats, please follow our posts regularly.