Obtain Fast Cash With Car Title Loans
Do you need fast money? Do you have a bad credit score? In case of poor credit history, you may come across difficulty to acquire short-term loans. By using car title loans, issues can be solved. It is possible to get quick cash without any issue. Income verification may not be done on the occasion at all. Requirement of credit check may not be observed at the same time. It is a kind of loan that is quite straightforward. However, you may fall in to a huge amount of debt in the future due to lack of car.
How car title loans function
By analyzing the car in proper manner, loan can be offered to you on the occasion. It is necessary to judge the value of the car. Money is obtained from the lender and some amount of interest may be charged over the debt also. If you do not manage to repay the money on time then you may have to surrender your car to the lender.
According to the wholesale value of the car, price is offered in most occasions. Title of the car is retained by the lending company till the loan is paid completely. However, the value of the car may not be same as its price. Title loan can be considered as a loan of short term nature. High amount of interest may be noticed with the short term loan in most occasions. It becomes necessary to sell the car to the lender in case money is not paid.
Title loan is mostly associated with the equity that has been built through the car. The title of the car must belong to you completely. In case you have bought the car with the loan then you cannot utilize it as collateral for title loans. During this time, title of the car is retained by the bank. In addition to the ownership of the car, you must be above the required age to acquire the loan. Evidence related to income and residence must be submitted in order to get the loan without any issue.
Read the offer document minutely
Legal bindings related to the title loans must be known adequately before applying for the loan. It is necessary to look at following things within the contract.
- Interest must be calculated in proper manner. Time period plays an important role to decide about the interest. In most occasions, 3% rate is charged each month. So, it can be equated at 36% per year quite easily. It is important to remember the fact that lenders for the title loan are not similar to banks or credit card companies. Usury law cannot be applied to them at any given occasion. Interest is quite higher with these kinds of loans.
- Penalties are often charged with the late payment. Therefore, you must be aware about the additional fees. Do they take away the car for a single late payment? It is important to know answer of this question.
- In addition, you must be aware about the mitigation rules also.