Have you been frustrated lately because all your loan applications are being rejected? Well, nearly 16% of Americans have a poor credit score. Could you be one of them?
There is still a way you can access to get that funding that you are craving. Yes, all you need is to be an owner of an automobile. Then you can access funding in the form of car title loans.
Title loans can be a great source of fast money that you badly need. Yet most people don’t know much about this source of funding. Dive in if you’d like to get answers to some of the common queries about this loan that people are afraid to ask.
What Are Car Title Loans?
Title loans are a form of high-interest loans that are short-term in nature. Lenders will require that you put your car as collateral for this loan before they advance it to you.
Lenders don’t require much before they extend this credit facility to you. It’s, therefore, possible to get this funding even if your credit score is poor. You can get this loan even if you have a truck or a motorcycle so don’t let the term “car” limit you.
The Working Mechanism of Title Loans
You can get this loan by making an application to a lender that offers the service. You need to make sure that you own a vehicle that’s lien-free for the application to be successful. Once the lender approves the loan, you’ll get the cash in exchange for the car.
Different lenders have different terms for car title loans. But it’s typical of most of these lenders to give you a repayment period of 30 days. The loan amount will be anything from 25% to 50% of your automobile’s value.
You are supposed to clear the loan amount plus interests and fees before the expiry of the loan period. If you default then you risk losing your car forever. Repayment of this loan can be a headache since the interest rate is very high.
What Can You Do to Avoid Defaulting?
The first and obvious solution is repaying car title loans on time. Make sure your lender has an income verification procedure if you take car titles online. The verification process will show you in advance whether or not you can repay the loan when it’s due.
The second remedy would be to engage firms that buy out title loans. TitleLoanser.com offers this service at a favorable interest rate. Working with a company will help you to clear the loan and interest repayment with your lender, even if you don’t have a clean and clear title for your vehicle.
Understanding Car Title Loans
Car title loans seem like an appetizing source of fast cash at first. You don’t need to have a good credit history or a stable source of income to get this credit facility. However, you might end up losing your car easily when you go for this credit facility.
Analyze your ability to refinance the loan on time before you take it. It’s also necessary to understand all the terms of the loan before taking it. That’s the only way you’ll avert defaulting on the repayments.
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