Car title loans are usually something people look at as a last resort option. They could also be used by people who want to leverage the equity they have in their vehicles. Either way, title loans are a popular and viable solution, but they need to be understood first. In this article, we’re going to touch on what car titles loans are specifically, how to apply for one, and some of the things you should be on the lookout for when pursuing one.
What Are Car Title Loans Exactly?
Car title loans are usually short-term loans that are offered to people who own their vehicle or those who have substantial equity in it. When we say own, we mean in the sense that they don’t have any payments left on the vehicle and there are no liens against it.
While these often have 15 to 30 days terms, it depends on the lender and where you are in the country. For instance, you can find title car loans Orlando with terms ranging from 60 days to a whole year.
Also, note that your vehicle will not be automatically seized if you can’t repay the vehicle on time. In some cases, you may be able to roll it over to another loan. But, in others, your car will be opened for repossession if you default on your loan. Also, know that the value of the vehicle will be the main determinant for eligibility. Some lenders won’t even look at your credit score.
How Can I Apply for One?
There are plenty of ways that you can search for a title loan, but the most convenient is to look online. You can work with either direct lenders or brokers that will connect you to a network of lenders.
To qualify, you can expect lenders to ask for things like a free and clean title, a government issue ID, proof of insurance, references who are not directly related to you, your SSN, and pictures of the vehicle. If you have your vehicle’s VIN, they will usually be able to process the application faster. Once loans are approved, they are usually deposited directly in your banking account in 48 hours or less.
Are There Some Things I Should be LookingOut For?
Yes. First, you have to make sure that you know the exact terms of the loan andthe interest rate. Sixteen states in the country allow lenders to charge triple-digit interests on their loans, so that is something you’ll need to watch out for. You also want to know what will happen if you default on your loan or miss a payment, and what are the fees associated. You also want to know if you’ll have the opportunity to roll over the loan and how.
Car title loans can be a good option if you own a vehicle or own enough equity in it. It’s also a great option for those with a poor credit history who are running out of financing options.