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.