Whether To Take A Car Title Loan Or Not
Car title loans are short-term loans that use the clear title of your car as collateral. Title pledge, pink slip loan, or a title pawn are other names that refer to a car title loan.
Some companies offer car title loans basal equity of a vehicle instead of the clear title of the vehicle of the vehicle. These loans are normally offered for a number of days to a whole month. Car title loans have a higher rate of interest compared to other loans.
These loans are not for everyone but they’re for those who can be able to pay back the loans. When one takes this loan, they are required to fill a loan application form, bring the clear title, submit a photo ID, present the vehicle, show proof of insurance and submit a set of keys to the lender.
When one is taking a car title loan, it is important to review the loan terms before signing for the loan. Other charges that one may find when taking a car title loan includes late fees, document fees, processing fees, title charges, liens charges and loan origination fees and all this must be disclosed by the lender. Some loans may have add-ons and borrowers must clarify with the lender whether there are such add-ons in one’s loan as this would raise the loan amount.
Applications for car title loans can be done through online platforms or through visiting a physical storefront that offers these loans. When a car title loan is approved, one must leave their car title with the lender until the loan is paid off. When one needs to make payments for this loan, they can do so through automated repayment systems, personally visiting the storefront with payment or through an online system.
Lenders may need to repossess a car and this is why they ask borrowers to install GPS devices so that the lenders can always know where the cars are located. Other lenders may require installation of starter interrupt devices which will limit your ability to start the car in cases where they need to repossess the car.
In case one is not able to make payment within the agreed period for the loan, they may get an additional loan which comes with additional fees and interest on the amount that was originally borrowed. Lenders repossess cars for people who are unable to pay back their loans. One should really carry out good financial planning if they want to take a car title loan.