As we develop more technology and improve our lives in every possible way, there are some difficulties that we continue to face on a daily basis. One of the most common is how to borrow money or obtain financial assistance when you need it. Just because there is not one perfect loan option for everyone doesn’t mean the world stops moving! That’s why Sara Graves, the co-founder of US Title Loans, came up with her profound understanding of loan demand in the market!
Here is a look at everything you need to know about this service to borrow money.
What is a Title Loan?
A title loan is an option that you can use to access fair payment without selling your car. The great thing about these loans is that they work in a way that the owner of the vehicle can remain the same. In fact, these are like a second car without the debts associated with it.
The owner can use their vehicle as normal while they are paying back the loan. This way, they don’t have to sell their car, or even give up their vehicle if they no longer need it.
Types of title loans
There are two types of title loans: secured and unsecured.
- Secured title loans are done through financial institutions that secure a lien on the borrower’s car in exchange for cash advances.
- Unsecured title loans, meanwhile, do not involve security. As a result, interest rates are higher for secured loans. To borrow money, borrowers must bring in the title to their car, along with a driver’s license and proof of where they live.
What are the Requirements to Borrow Money?
Title loans come with minimal requirements as long as they are applied for in person and have been approved.
Proof of identification
If you apply online, you must have a valid Social Security number and a photo ID to be considered for the loan. In some states, you will need to have a driver’s license. The lender will ask for your personal information, so make sure that you are using your current information and that it is not outdated. If you do not have an address in the state, it is recommended that you contact the lender for a new address.
Credit history
People who have bad credit histories find it more difficult to obtain title loans. However, one can still expect to pay the current interest rate set by the state. Applicants who have good or excellent credit will likely receive lower interest rates.
Fees
Title loan companies collect only one fee, and that is the interest that you pay on your loan. Some states charge a title transfer fee, which should be listed on the agreement. Title loans in some states often come with additional fees, however. The fees will be listed on the agreement that you sign with your lender.
What Are the Benefits of Title Loans?
The main benefit of a title loan is that you don’t have to use your own property as security. If you lose or damage something when using the loan, it is not on you to replace it. In fact, you should ask for an insurance policy from your title lender so that if something does happen to your vehicle, the lender will cover any costs associated with repairing the damage. Options to borrow money are also beneficial since they don’t come with any stringent credit checks. You will not be denied a loan based on your credit history.
Good option
Maybe. It’s possible to pay off your car in full while using this service. The fact that you have a dependable income to fall back on will help make things easier.The important thing is to know exactly what you need before you start considering any of these options.
Easy loan
People who have bad credit and need to take care of their debts have excellent options. Since title loans do not involve security, borrowers get a full month to make their decision on the loan. There is no need to rush into a loan, as it will likely be paid off before you know it. How to take a personal loan upto 1lakh (complete information) 2022 The money that is borrowed can be used as you see fit, while still allowing you to pay off your debt.
Suitable amount
The amount that you can receive will depend on the value of your vehicle. For example, US Title Loans , a title loan broker in the US, gives an example of their process: A borrower applies for a $1,000 loan with a lender in their extensive network and has about a year before the car is paid off, with full monthly payments. The borrower would get $140 after 14 months since it is an annual interest rate on a monthly basis.
By far, the largest amount that can be borrowed is $5,000, which varies from lender to lender. Most loan amounts are around $1,000 to $3,000. You will be approved based on your own personal credit history with the company. Note that some states have limits on loans; it is important to check with your state or local laws before deciding on a title loan.
Minimum time
It can take anywhere from a few hours to a couple of days for the lender to receive your information and review your application. Some states are more thorough than others, so check with your local lending institution before deciding on a lender. Your loan will be prepared and all documents will be sent to you within a week of making an application. You can also expect your title loan approval notification by mail within 24 hours.
Final Words
US Title Loans is a wonderful way to compare your loan options and choose from a cooperative lender’s network to get money when other options aren’t available. If you are in a tight spot and need help, a title loan could be the best option for you. Make sure to check with your local laws, but if there are no limitations, it is an excellent way to get money fast.
Borrowers can also make up to five monthly repayments on their car or truck from the amount they initially borrowed through a title loan.
The vehicle must be worth enough to cover the loan, and lenders typically ask for some form of collateral in order to secure their investment. Without collateral, lenders are more likely to reject your loan application. If you need money in an emergency, you can use your own personal assets instead of signing up for a title loan. You may also be required to post collateral, which will keep the lender’s investment safe.
