Title Loans: An Overview

There are many types of loans, most of which utilize a type of collateral in exchange for a borrowed monetary value. In the case of a title loan, a car is used as the collateral.

To explain further, the vehicle is not completely surrendered, rather the borrower temporarily gives  the lender their vehicle title and allows them to place a lien on it as security for the lender’s investment. The lender then provides the borrower with a short-term loan and holds the car title and lien until such time that the loan and any accrued interest are paid off. However, if the borrower defaults on payment to the lender, the automobile becomes forfeit and the lender may auction it off to cover their loss.

Why Would I Want a Title Loan?

Small loans are not available to individuals with poor credit history through most banks and other financial institutions which provide other credit options. Such small-scale loans are considered to be too high-risk and low-reward to be worthwhile. An advantage to title loans is that very small loans may be acquired quickly and easily.

Most financial institutions also require that borrowers have a stable source of income, in addition to obtaining collateral. Because they are based on the value of the automobile used as collateral, it is not important that borrowers who apply to have a title loan have good credit. Because of this, many borrowers with poor credit history find auto title loans to be a good option for receiving a short-term loan.

Interest rates for title loans vary from 36% to over 100%  (which is high due to the risk for lenders)  and payment schedules vary between states and individual lenders.

Title Loans: How?

With new technologies available, many lenders offer website applications as well as storefront services. Borrowers should bring  government-issued identification and any other required forms of identity verification required by the lender at the time of application. Personal identification, such as a government-issued ID, proof of address, and proof of employment may be required, in addition to the vehicle’s title, insurance, and registration. The car used as collateral must be solely owned by the borrower with no pre-existing liens or financing.

The amount of a car title loan is based on the amount requested by the borrower and is capped at an amount which varies based on the value of the collateral. Lenders generally cap the amount of a title loan at about half of the car’s Kelley Blue Book resale value. The difference in the vehicle’s total resale value and the maximum loan amount is used by the lender to offset the debt and any expenses which may accrue in the case of a default.

Finding a Title Loan That Suits Your Needs

Nothing is more difficult than experiencing a financial problem. It can make your life remarkably stressful. The truth is that financial problems can occur for any number of reasons. Perhaps your hours have been cut back where you work. Perhaps you’re dealing with a massive medical bill. Regardless of why you are experiencing difficulties, the bottom line is that you need to act. A title loan can give you the money that you need to improve your finances. As you may know, though, title loans can be very complex. You need to find the loan that makes sense for your particular situation.

One of the biggest advantages of a title loan is that it is remarkably convenient. If often only takes a few minutes to get approved. Prior to applying for a loan, however, there are several things that you need to think about. You should only get a loan that you are confident that you can pay back. You will face stiff consequences if you do not pay the loan back on time. To begin, your car could be repossessed. On top of that, there could be substantial fines. As long as you are responsible, though, a title loan can be incredibly advantageous.

If you need money, a car title loan is a great option. To get started, you should look into your car’s value. It’s worth pointing out that the value of your car will be directly correlated to the value of your loan. Remember to do all of your homework before you even apply for a loan. This will prevent you from being taken advantage of. As you’re looking for a title loan, try to shop around. This will make it more likely that you find a loan that meets your needs.

Before you apply for a title loan, there are a few things that you need to do. Obviously, there are a few pieces of paperwork to worry about. Car insurance, identification, and current employer are all relevant details. If you expect to receive a title loan, you need to be a US citizen. Once you have all of your information ready, you’ll be able to apply for a loan.

Look into a lender’s background before you apply for a loan. There are several directories on the Internet that will be able to help you here. These sites allow people to post reviews on lenders. If you don’t have Internet access, ask your friends for recommendations. The truth is that someone you know has probably had a car title loan in the past. By collecting information, you can improve your odds of finding a good title loan.

A Brief Overview of Title Loans

In these hard economic times more and more people have been finding it difficult to get a conventional loans and are instead seeking alternative ways to receive the funding they need. The reason that people are having trouble receiving a conventional loan is that in tough economic times banks are less likely to lend to people who have questionable credit. The problem with this is the fact that, when the economy slows down, people often need a loan to get back on their feet or to save their business. So if you find this is happening to you, then you might certainly benefit from learning about title loans.

You might be one of the many people out there who knows little or nothing about title loans. Whether or not an applicant is qualified for a title loan is not, like a traditional bank loan, based primarily on the applicant’s credit score. Actually, it is one of the biggest advantages of a title loan that they can actually be obtained with relative ease. This is because, if you have something to put up for collateral, no matter what your credit score is, you can get a title loan.

If you are unfamiliar with title loans then you might be wondering how they work. When you get a title loan what you get is a loan secured by the lender holding the title of a certain kind of collateral, which can be your car or some other item. This is not to say that the collateral is in any way held by the lender through the course of the loan. No matter if its your boat, your car or a camper trailer, the lender will only hold the title through the course of the loan, while you enjoy full use and ownership.

The value of a title loan is based on the amount of equity or value that your collateral has. Most people use their car’s title to secure their title loans, so often that they are usually referred to as auto title loans. Regardless of what you choose to use as collateral for your car title loan, the process of obtaining a title loan is so fast simply because it is a secured loan. Unlike a bank loan that can take as long as a week to process, your title loan lender can actually process your application and give you a decision in less than an hour.

It is also possible to visit a title loan website and access an application right from your home computer, which can make the process even faster. The best way to learn more about title loans and the title loan process is to go to a title loans website where you will find all of the information you need to get the application process started.

Learning about Car Title Loans

As much as our lives have changed in the wake of the recent economic downturn, the fact still remains that we need money in our everyday lives. In fact, whether they are bills or unforeseen emergencies, these economic troubles have only made it more difficult for many of us to manage and simply get by. Because so many of us have accordingly taken serious hits to our credit, if obtaining a loan to help take care of these things is even possible, doing so is certainly more difficult than ever. As such, alternative means of obtaining loans, like car title loans, are becoming increasingly popular for people in need of money.

As the name suggests, a car title loan is a loan in which the title of your car is used as collateral security for borrowing various amounts of money. Unlike the majority of traditional loans, which use your credit history to determine your ability to repay them, car title loans depend on your car’s value as the primary instrument guaranteeing that the loan will be repaid. However, these loans do tend to have relatively higher interest rates and are usually for shorter periods of time, primarily because the value of cars depreciates every day, as well as each time they are driven. Still, with the lack of credit checks, as well as the guarantee of repayment, these loans can often be obtained in less than an hour and can be as little as one or a couple hundred dollars.

Of course, there are binding terms to car title loan agreements, the most important of which is that the borrower must be the actual owner of the car, without any outstanding balances or liens. Also, these loans just about always require you to have full insurance coverage on it, though there may be a few exceptions in some states or regions. This stipulation is very important for lenders because you will still be able to continue using the car as you normally would, although you have to hand the actual title over to them. If the lender ever needs to claim the car as a result of your inability to repay the loan, this will give them sufficient assurance that the condition of the car, and thus its value, is sufficiently protected.

Though easier to obtain than traditional loans, car title loans should never be taken lightly since the consequences of failing to pay it back are quite serious, especially if you are having any kind of financial challenges. Clearly, the fact that your financial situation requires you to take out a loan most likely means that it would be considerably difficult for you to replace a car if the lender happens to take it away. Fortunately, many states do require lenders to hold the vehicle for a specified amount of time before they can sell or auction it, allowing you the opportunity to pay whatever is owed on loan. In the end, the most favorable outcome for both you and the lending institution will be to repay the loan according to the terms you agreed upon, if not sooner.

In the midst of struggle, we can sometime come to realize that we have more options available to us than we might at first think. Similarly, even if your credit is not accepted at banks and traditional financial institutions, you still do have other loan options available to you. In those times you need a bit of financial help, a car title loan could very well be that relief. Visit the car title loan website if you have questions.

Important Information About Getting a Title Loan

Most of us could use some extra money every now and again. We have all had unexpected events happen that end up costing us money, or things that we knew we had to pay for that ended up costing more than we anticipated. Or it might just be that you are experiencing money troubles. No matter which of these reasons fits your circumstances, if you are in need of some extra money then a title loan is one way you can get help.

Title loans are basically secured loans in which the borrower puts up some for of collateral, usually a vehicle, up to secure the loan. But you do not, however, lose the use of your car if you borrow against it. As is suggested in the loan’s name, a title loan is where the lender actually holds the title of the collateral while the loan is being repaid. Though we may assume by the name that only cars can be used to secure title loans, you may also borrow against anything else that has equity, including boats, campers, trailers and various types of recreational vehicles.

The amount that you can borrow is determined by the amount of equity that you have in whatever you are borrowing against. This means that if you are the owner of the car or other form of collateral but still owe payments you might still qualify for your title loan. Even if the lender runs a credit check, your credit score is not the determining factor in whether or not you get a title loan. In fact, getting a title loan is one way that is often recommended to help a person rebuild their credit.

When you research title loan lenders there are certain things that you should look into before you decide which lender is the right one for you. First, you should look into what kind of interest rate the lenders offer. You will also want to look closely at the repayment schedule for your loan. If the minimum payment seems a little bit low for the loan then you will want to make sure that it is not a weekly payment instead of a monthly payment.

The bottom line for most people who have the proper collateral is that a title loan is a great way to get the money they need fast. In order to learn more about how to obtain a title loan you should visit the web site of a title loan lender on the Internet. When you visit a title loan web site you will be able to learn about the entire process of how to procure a title loan as well as the terms of the loans that are currently being offered.