Facts About Car Title Loans
At times, you may be faced with a financial crisis. One of the ways you can acquire an emergency financial loan when you have a car is a car title loan. The amounts given on credit and is payable within one to four years is the car title loan. In exchange for the cash, you will have to give your car title to the lender. You will need to learn how car title loans work.
Proper documentation is very essential when you are applying for a car title loan. Note that your car is a big asset, which is why you need proper documentation. Lack of proper documentation will leave the lender doubting the honesty of the person applying for the loan. A vehicle title, your application, car photos, and a valid government issued identification document are some of the documents you need when applying for a car title loan.
You will also need to do a car inspection and evaluation whenever you are applying for a car title loan. Based on the condition, model and value of your car, the lender will determine what amount of car title loan you can get. After, your documents are approved, you will receive your loan.
You might also not get a car credit loan from some lenders if you don’t have good credit. To ensure that you will be in a position to repay your car title loan, your lender will go through your background, employment checks as well as your credit checks. As opposed to other bank loans, you can get a car title loan without undergoing a credit check provided you have an income source.
Your car value is what determines the car title loan you can get. Mainly, you will get 50% to 60% of the value of your car. You will get a car title loan limit based on whether there is any lien on the vehicle, whether your car title is clean and the model of your car. You will get back your car title the moment you repay your car title loan together with interest. The car title repayment plans are different depending on your lender and is usually based on principal, loan duration and interest.
You should also know that the processing of a car title loan takes a short time as compared to normal bank loans. The car title loans usually involve little credit checks and paperwork, which is why it is considered as an emergency loan.
You should also know that in case you are unable to repay your car title loan and interest, the lender will put your car on sale.