Car Title Loans a Definition

How can car title loans work to my advantage?

Emergency Funds

What do you do in a situation when you need funds urgently? Approaching a bank, in many cases, may help people get the loan. Banks have lengthy paperwork, which they will be required to complete. They may even be rejected for the loan if they do not qualify. Making an application with the local loan store for an expensive payday loan will be the only thing left for people to do. Here is an option that will assure that you will never be rejected for the loan and give you the money quickly as well. These loans are called Car Title Loans.

Instant Approvals

Car title loans are approved almost instantly. Lenders in this case are assured of the money that they agree to loan you, since you are handing over the title of your car to them. These are also known as secured loan of sorts. Beware that you are handing over the title of your car, you risk losing it in case of a default. Lenders are willing to approve such applications for loans without any hesitation as they are aware about the facts. It will only be a matter of hours before the money is in your account. You do not have to run around completing large amounts of paperwork. The resale value of the car will be taken as the amount that you will be allowed to borrow. Ownership of a new car with a clear title will get you a higher amount than with an older one.

Requirements

The only aspect that lenders look for when approving a car title loan is whether or not you have a clear title on the car. If you carry a debt burden from another financer on the car, you will not be eligible for the car title loan. In this case the lenders of your car loan will be holding the title of your car. Fill out an application only after making sure that you have a clear title on the car.

Duration of the Car Title Loan

Car title loans are usually offered for very short periods. The money has to be repaid within 15 to 30 days. This may look similar to a payday loan, which is true. A car title loan is available with a lower interest because the loan is considered secure, unlike a payday loan. You will not be required to pay exorbitant charges as interest and other fees.

Rules Remain the Same

Just because you have offered the title of your car against the loan, you are not entitled to delaying payments when they are due. You are still required to stick to the repayment schedule without fail. You will be liable for heavy rollover charges, if you don't. Your car can be taken away by the lenders against any overdue payments, in extreme cases. You should always remain extra careful about this and be sure to return the money on or before the due date. After all, the title of the car has more value to you than a paltry loan.