A time always comes in a consumer’s life when he or she will need extra money. The need for additional cash might be due to an unforeseen emergency or a secret desire that person wants indulge in now such as a vacation or a shopping spree. Sometimes it just feels secure for a person to have spare money in the bank account for when an emergency does arise. An auto title loan is an all-purpose cash advance for which most consumers can qualify. Whether it is for pleasure emergency or security the help is just a phone call away.
What is a Title Loan?
A title loan is a short-term cash advance that a lender issues to a person who owns a vehicle. Many lenders offer this type of advance because it is secure for the lender and helpful for the borrower. The amount of money the lender gives to the borrower depends solely on the value of his or her vehicle. Additionally the lender places a lien on the owner’s vehicle until he or she repays the advance. That way both parties benefit and if everything goes smoothly the borrower may come back again some time. Click here to know more details about finances.
Who Qualifies for a Title Loan?
Anyone who is over the age of 18 and is the sole owner of a vehicle may qualify for an auto title loan. Some lenders will also like the applicant to have a stable job and a decent income. However some lenders will allow a person who receives disability checks or unemployment checks to process title loans. Since the car acts as security for the advance most title lenders are lenient in regards to the qualifications. The best way to find out the criteria is to contact a lender in the area.
How much can a Person Receive?
The amount the lender offers the borrower for a title loan depends on the value of the car. The lender will use information such as the make model year and condition of the vehicle to come up with a fair offer on the car. Newer cars can qualify an owner for a larger advance. The average auto title loan is approximately between $500 and $5000. However some title loans may go up to $50000 or more. Hundreds of title lenders exist and every lender has its own thresholds and criteria.
How to get a Title Loan?
Getting a title loan is a simple as making a phone call. Every title lender will have a number that an interested person can call. Some of them also have online inquiry forms the person can use. Usually the lender will answer a request within 24 hours and send someone to the car owners’ home to inspect the vehicle. Other companies might require the person come in to a branch location with the vehicle. If the borrower agrees to the terms of the contract and he or she signs the contract the lender will disburse the desired funds almost immediately after the signature.
A car represents a certain investment and sometimes that investment can be used to help pay some bills. Through car title loans a car owner can get some money from the car The process is reasonably simple and in generally the person can secure a loan within a few days making it a decent way to get the funds needed for bills. However before you enter into negotiations to secure a car loan you may wish to debate whether or not a car loan is right for you.
The idea behind car loans is simple. A relatively new loan the loan works because it comes with its own collateral; the car itself acts as collateral to secure the loan. In order to secure the loan a person must talk to a car loan officer usually at a used car dealer. As part of the loan application process there is a lot of negotiation usually about the price of the car and then terms are actually discussed. Once the terms are discussed and agreed to the person asking for the loan may or may not receive the money. As long as the payments are current the person keeps the car and the loan will eventually be replayed.
The negotiations are probably the least fun part of the process but the most necessary. The loan officer will seek a fair price for the vehicle based on his ability to sell the vehicle and how much he may be able to get for it just as the person is attempting to get the most value for his vehicle. Also the person’s credibility with the loan officer is going to help; the more the two of them know each other that will affect the price reached. In general the higher that credibility and the better the value of the car the better the loan can be; it is possible for the loan to reach as much as roughly half the true value of the car. Additional guides can be found here.
It is a simple enough process but there are some possible complications. The most obvious complication is that the person may default on the loan and the car may be repossessed. Most loan officers will usually allow up to three payments to be missed provided that there is a good reason and a promise to get back on track. However all officers are not that nice and thus they may default the loan for fewer missed payments or for too many delinquent payments. If the loan is defaulted on the loss of the car is imminent.
When you debate car title loans you should be asking yourself if you can afford to pay back the loan. Keep in mind that the loan may require you to pay back as much as twice the original loan over the duration of the loan making it definitely an onerous task to repay one. In fact this may be a reason to actually seek less than the amount possible in order to ensure that you can pay it back. Nonetheless it can help take care of some pressing bills and give you a much needed breathing room especially if you are looking at too many bills and a loan may be just the thing you need to kill some stress. It may be onerous to pay back but it may just the thing to help out with some bills.
If small amount of money is needed urgently then there are limited options in the loan market. Institutional lenders simply do not lend small amount loan. They also require different types of documents impeccable credit record collateral or security and cosigner before they even consider a loan application. They take a few weeks or months in releasing the loan amount. It is because of these disadvantages with the traditional loans that people have turned to online payday loans.
About a decade back it was very difficult to obtain even payday loans but thanks to Internet everything has changed now. Obtaining this type of loan is a quick process that can be completed from the comfort of home. Any person who is eligible to receive this type of loan can apply online and receive the money within 1-24 hours. There are only a few loans in the market that can be obtained in such a short span of time. These loan options involve pawning gold or other types of valuables. To apply for the payday loan an applicant only needs to fill some personal and salary information in the form given at the payday loan provider’s website. After receiving the submitted form the company checks the information provided by the applicant. If the borrower submitted correct information then the loan amount is disbursed immediately.
Payday loans can be used for any purpose. It is advised to use this loan only for short-term emergency cash requirements and not for everyday expenses. For example the payday loan is useful if someone in the family urgently needs medical treatment or expensive medication. If the vehicle an appliance or an important electronic device at home is broken then the loan amount can be used to repair that object. Some individuals are unable to repay their monthly installment of a major loan on time and face the prospect of paying penalty if the repayment is paid late. If the premium of an insurance policy is not paid on time then the policy may lapse. Payday loan is the right solution for all such financial needs.
The eligibility criteria for payday loans are very easy. Individuals 18 years or over and a citizen of this country can apply for this loan. The person must have a checking bank account because the loan amount is deposited directly into the bank account of the borrower. The loan amount a person can obtain depends on the loan provider’s eligibility requirements for the borrower. Individuals who have better record in repaying loans can obtain a loan with higher amount.
Payday loan is designed to be paid quickly on the next payday or before that. It is best to avoid extending its repayment because it is a high interest loan. When used judiciously for short-term financial requirements citrusnorth.com Online Payday Loans prove very useful in overcoming financial distress. A good thing about borrowing payday loan is that the information provided by the borrower remains confidential even after the loan has been repaid. This is not the case with traditional loans where every time an applicant applies for a loan the information is recorded and becomes available to all lenders. This proves damaging when many lenders reject the loan application of a person.
When dealing with any payday loan company it is important to verify its authenticity beforehand. It is a good idea to check its credential through Better Business Bureau. The company must have good record in providing good customer services. It is important to avoid spam payday loan sites that prey on people in need of loan and who are unable to obtain the loan through traditional route. Borrowers can avoid such pitfalls involved in receiving payday loans by dealing only with licensed and legitimate online payday loan providers.