A title loan is a type of secured lending that allows borrowers to use their own car as collateral. In this case, if the borrower defaults on such a loan, the borrower may confiscate your car, since it is the object of collateral. Since the credit risk of the lending company is low in this type of short-term lending due to the presence of physical collateral, such a loan can be granted to a borrower with a bad credit history and a low credit rating. A short-term loan secured by a car gives the borrower the opportunity, in exchange for the transfer of ownership of the car as collateral, to receive a loan from a credit company in the amount of 25 to 50 percent of the value of the pledged car. These types of loans are short-term, the term of which, as a rule, does not exceed 30 days. To obtain a short-term title loan secured by a car, the borrower, as a rule, must be the sole owner of the vehicle. Although such a loan is called a title loan secured by a car, in practice it can also be granted against the security of motorcycles, boats and other vehicles owned by borrowers. The loan amount varies from 25 to 50 percent of the value of the pledged car and depends on the value that the lender determines when evaluating your vehicle. The minimum amount of such a loan can be $100, but often the loan amount can be $10,000 or more.
How does a car loan work?
Source: geeksandcleats.com
In order to get a title loan secured by a car, you must first find a lender that provides this kind of loans. In addition, you must own a car that is not the subject of another pledge. If you are the sole owner of such a vehicle, you can apply for a title loan. When applying, the lender will need to show ownership of the car and the car itself. Most often, title loans are short-term with a maturity of 30 days. However, the lender may extend the term of the loan, depending on your financial situation. At the end of the loan period stipulated by the loan agreement, you will be required to make a lump sum payment, including the principal amount of the debt, interest on the loan and other fees, if they were provided for in the loan agreement.
Is it possible to get a loan secured by a car without inspecting the car?
Source: fincyte.com
Since the car is used as collateral for such a loan, lenders must assess the condition of your car before approving such a loan for you. However, this does not mean that in any case you will have to deliver your car to the office of the credit company. Currently, more and more financial transactions, including credit, go online. Not only interest payments are moving online, but also inspections of physical objects that can act as collateral for title loans. Submitting an online application for a title car loan allows you to choose a vehicle inspection format that does not require you to present your vehicle for a physical inspection. By contacting an employee of the credit company, getting approval to provide high-quality photographs of your car from different angles for inspection, you get the opportunity to quickly receive the money you need. Servicing online loans is currently no less, if not better, than a physical visit to the office. Online lending gives you the opportunity to save your time and have credit funds in your bank account within 1-2 days. Such a loan suits different categories of borrowers, even the unemployed. This is because if you own a vehicle, lenders may not need proof of your employment and income level. These types of loans are also beneficial for lenders, as they have high interest rates that can increase if you stop repaying the principal and interest on it. The risk to the lender is increasing and the rates are also increasing.
«Also, on our site you can read about, what do you need to get a loan on a salvaged title.»
Credit rating
Loans of this kind have huge advantages for borrowers, as they can be granted to them even if they have a bad credit rating. Even if your credit score is extremely low, you can still get such a loan because it will be secured by your own car. You don’t need to think about how to improve your credit score to get a car title loan. Especially since it can take years.
Get approved immediately
Source: entrepreneurshipinabox.com
The approval process for a car title loan is quick and easy. Since the borrower does not need to visit the office of the credit company, the process of filling out an online application and obtaining a loan is very fast. The online application can typically take 5 to 10 minutes to complete. The application approval process is also fast because the lender does not perform a serious credit check on the borrower. If all the information you provide meets the requirements of the lender, then the process of transferring funds to the bank account you specified occurs within 1-2 days.
Keep driving
An important advantage of a title loan secured by a vehicle is that as long as you make good faith monthly payments for using the loan, your car will remain with you and you will be able to continue driving it as before. This is due to the fact that the lender, when approving this kind of loan for you, imposes a lien on your ownership of the car. This means that the ownership of your vehicle is pledged until the loan is fully repaid, but the vehicle continues to be in your possession and available for daily use. You can read more about the requirements for obtaining a title loan on the website.
Summary
Car title loans are a popular and quick way to get fast cash even if you have a bad credit history and a low credit score. You can spend a lot of time looking for the right lender that provides this kind of short-term loans. The situation can be complicated if you want to take out a loan secured by your car without a physical examination of it. To facilitate the task of obtaining a loan in such a situation, it is better to contact online lenders who have accumulated extensive experience in this type of lending. These lenders are able to provide you with a title loan secured by a vehicle without having to physically inspect it. They can provide you with such a loan based on correctly completed documents and high-quality photographs. If you would like more information about the terms and conditions of these loan programs, you should contact a trusted representative of your local lending company. Employees will explain the terms of the loan agreement and help you get a short-term title loan secured by a car without physically examining it.
