Every person is liable to financially tough times in which he requires additional financial aid in order to help him in fulfillment of needs at hand. If your income fails to meet big lifetime demands, loans work as life saviors. One type of these loans is Car Title Loan. Although this loan has a number of great advantages it can cause loss of your title in case of default on car title loan – TopLoanCompanies.com. Here is everything which you need to know before taking out a Car Title Loan.
Car Title Loan explained:
Car Title Loan is exactly how it sounds- meaning that a lender keeps your title as a collateral in order to offer a loan to you. Traditional lenders such as financial companies and banks will keep your offered title as a collateral for the lending the loan.
Need for a Car Title Loan:
Car Title Loan does not bound you with spending and access restrictions. In situations where the sudden need of a sum arises for the fulfillment of basic life needs such as paying off bills or making it to the next payday, a Car Title Loan can be obtained.
Working on a Car Title Loan:
Today’s Car Title Loan lenders work by either keeping your title as a loan collateral or by letting you keep the title.
- First, you will take your title to a potential lender and he will evaluate the car for its condition and model. He will determine the resale value of the title and may demand to have an actual look at it.
- After that, you can obtain as much as 50% of the total resale value of the title as Car Title Loan.
- Repayment is either done in lump sums or bit by bit. The latter option is subject to high interest rates.
Advantages:
Car Title Loan has some major advantages associated with it which include:
- No cash restrictions. You can cash your Car Title Loan at any time you want.
- Car Title Loan is a loan which does not require or demand any credit
- There are no cash spending restrictions nor are you required to explain your expenditures to anyone. You can spend the Car Title Loan anywhere you want.
- Unlike other bigger loans, Car Title Loan is a relatively smaller loan. This makes Car Title Loan easier to be paid back.
Disadvantages:
Car Title Loan also has some serious disadvantages associated with it which include:
- Car Title Loan has high-interest rates if you cannot pay lump sums. These interest rates fall somewhere near 300%.
- You are also required to pay higher amounts of fees in case of taking Car Title Loan.
- In the case of loan default, you will definitely lose your car. Visit default on car title loan – TopLoanCompanies.com for more information.
- Car Title Loan has strict rules which require that the title must be in your possession as well as free from any kind of liens.
