Definition of Car Title Loans

How to define Car Title loans, and just how can you use them for your benefit?

Urgent Cash

What do you do in a situation when you need funds urgently? People approach a bank for the loan, in most cases, and may even get one. However, they will have to complete the lengthy paperwork that the bank requires. They may be rejected for the loan if they do not qualify. Payday loans are expensive, but available from the local loan store, and this may be the only thing left for people to do. There is another option, which assures you that you will never be rejected for the loan and even get the money quickly. Such loans are known as Car Title Loans.

Instant Approvals

Car title loans are approved almost instantly. Since you are handing over the title of your car to the lender, they are assured of the money that they agree to loan you. They may also be referred to as a secured loan. You should be aware that by handing over the title of your car, you risk losing it in case of a default. Lenders approve such applications for loans without any hesitation as they are aware about the facts. Lenders transfer the money to your account within hours. You will not have to run around trying to complete large amounts of paperwork. Your borrowings will depend upon the resale value of your car. Having a new car with a clear title, will make you eligible for an higher amount than with an old one.

Necessities

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. This means that you will be ineligible for the car title loan if you have an unpaid debt on the car. The title of your car will be with the lenders of your car loan in such cases. Therefore make sure that you have a clear title on the car before you can fill out an application.

Time Frame of a Car Title Loan

Car title loans are usually offered for very short periods. The money has to be repaid within 15 to 30 days. It is correct, if people feel that this sounds more like a payday loan. Car title loans come with lower interest rates as they are considered secure, unlike payday loans. Exorbitant charges towards interest and other fees will not be recovered from you.

Guidelines Stay 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. Make sure that you do not fail to meet your repayment schedule. You will become liable for heavy rollover charges, if you do not make payments in time. There is a possibility that your car may be taken away from you against overdue payments, in certain cases. Remain careful by keeping ahead of the repayments and return the money before the due date. After all, the paltry loan pales in comparison with the title of your car that is more valuable.