What Must You Know Before Applying for Car Title Loan?
Are you searching for the best title loan company near me? It’s time to pause your search for a bit and then start getting some information that proves helpful in making the right financial decision. Here are some points to ponder a bit before sending your car title loan application online.
You Must Own the Car or Have Some Equity to get this Loan
No matter how promising a title loan feels like, the first requirement you need to fulfill is car ownership. If you don’t own the car and have it through a financing company, you have some equity in your vehicle. It is a secured loan in which your vehicle works as collateral. You must know about four mistakes that you should avoid while taking a personal car loan.
When it comes to loan amounts from a car title loan, between $100 to $5500, people are getting such loans for both new and used cars. As long as your car has a market value, you can use its title to generate a loan. It would help if you kept in mind that title loan is short-term; it means you only have 15 to 30 days to pay it.
Although it is commonly referred to as car title loan, the reality is that this Loan is available against the title of other vehicles, such as trucks, motorcycles, and SUVs.
You must have a clear title for getting this Loan or 100 percent ownership of a car. If your car has a lien, then you can’t get a loan. If you go this car through a car financing option, make sure you have some equity. Your car title isn’t the only requirement, proof of your car insurance alongside, your photo ID is required in most states. Your lender will hold your title as he will become lienholder of your car title. You can get your car title back once you pay off the loan amount.
Understand the Cost of Car Title Loans
A car title loan comes with a cost that includes interest rates and other charges. If you have already locked into a debt deal, then you know all about the cost related to a loan. However, one thing that makes this Loan different from others is its high-interest rate. Whenever you search for the best car title loan company near me, you should ensure that you get a clear idea about the interest rate. Go with a company that offers a competitive rate. Most likely, a company charges a 25 percent rate of the loan amount, for a $100 loan you need to pay $25 extra. It is essential to understand the cost of fast title loans before you decide to get it. When considering to trade an old car to get some money to buy the new one, you might want to check here for best place to sell your caravan. If you’re looking to buy New Hyundai Cars, you may look into acquiring loans and other financing options.
If you opt for an alternative to car title loan such as a payday loan, it comes with 400 Percent ARP while a car title loan has only 300 percent ARP. Although you need to incur a cost when you opt for title loans, this cost is lower than getting a payday loan.
You will lose your car
Last but not least, if you are unable to pay off the Loan, then the lender will take your car and sell it in the market. So, you put your car at risk. Make sure you consider all these points before getting this loan if you’re looking to buy used cars.
