Tag Archives: auto title loan

Bad Credit Title Loan

Auto title loans are become increasingly easy to secure. They are short-term loans, and they use a vehicle as collateral. The lenders who offer such loans are not interested in the borrower’s credit score, so these loans are fit for those who have bad credit. For a borrower to secure a bad credit title loan, a person can either seek for lenders in town or online. The online version is more comfortable and gains more and more popularity.

To secure a bad credit title loan, the borrower needs one form of identification or another, a valid government-issued ID, such as a driver’s license, and a proof of a stable income. There are other requirements to secure such a loan: some form of mail to prove the borrower’s residency, car registration, a lien-free car title in the name of the borrowers, some references. Some states might require even having car insurance, though not all states do. The maximum sum a borrower can get is determined by the value of the collateral. Usually, lenders will offer up to half of the car’s resale value, and some will go even higher. However, the borrower must have a clear vehicle title, which means that the car needs to be paid in full and have no liens or any form of current financing. Some lenders also require a full insurance on the vehicle.

The interest rates vary from state to state, and from lender to lender. They range between 36% and sometimes go above 100%, which makes these loans some of the most expensive ones, almost as expensive as payday loans. Payment schedules are different from lender to lender, but usually the borrower has to at least pay the interest at each due date. When the term of the loan ends, the full outstanding amount could be due in a single payment. Again, this may vary. If the borrower cannot repay the loan at this time, they can take out a new one, known as to roll the balance over. Most of the times there is a limit to this, for borrowers to not remain perpetually in debt.

If the borrower doesn’t pay back the loan or is late with the payments, the lender is entitled to take possession of the car and sell it to recuperate the money. But lenders only choose this option as a last resort, for many reasons. It may take a long time to recover the vehicle, months and months, and the costs with repossession, auction and court make lessen the amount of money lenders will get back. In most states, law requires the title loan lender to hold the vehicle for 30 days before selling it, so the borrower may pay the loan and recuperate the car.

However, bad credit title loans should only be considered as an emergency, and paid as soon as possible, to avoid the high interest rates and various commissions.

Get the Perfect Vehicle Title Loan Online

Being strapped for cash is never a great feeling, but if you own your own car then you might have a way out of your financial shortfall by arranging a vehicle title loan online today. Whether you have a bad credit, no credit, bankruptcy, new comer to Canada or can’t get a bank loan for other reasons, you could still take out a car title loan quickly. Money borrowed can be used for travel, emergency cash, pay a bill, vehicle repair loan or any other cause requires fast access to cash. There are a few simple steps that you need to take before you can get approved for a car loan, including getting your paperwork together and doing some research, but as long as you are the registered owner of your vehicle and it is fully paid for, you should have no problems getting some kind of auto title loan.

Take The Time to Research Online

Looking for the perfect vehicle title loan online is the best place to start, because many loan companies are now offering their services online. Some of the companies may not be able to offer you the full loan that you need, but there are others who will be able to. Some companies lend only a few hundred dollars, while with others you can borrow up to $30,000. One should also consider the term of repayment – short term loan being one month or so – or long term loan over a few years. Some financial car loan companies will offer you an open loan while others will charge pre-payment penalties. Researching the companies will allow you to make the best car title loan choice for your needs.

Applying Online

When you find the company that you want to do business with, you will need to make an enquiry. You can do this through the company’s vehicle title loan online application form, where you will fill details of your vehicle, including its age and the number of KMs on the odometer. Once you have done this, you will then get an email or phone call reply.

Submitting Paperwork

Although you can apply for your personal vehicle title loan online, you will still need to submit paperwork which proves that you are the owner of the vehicle, and that there are no other loans on the car. Submit the paperwork as required, and let the company get your loan approved. You will be approved if your vehicle meets the companies’ criteria and it is fully paid for.

Benefits to A Vehicle Title Loan

Unlike some forms of loan, auto title loan does not require you to have good credit, or to have a job. If you are unemployed or self-employed, you can still get the cash you need as long as you own the title to your vehicle. In most cases, being a loan using your vehicle as collateral companies will offer you competitive interest rates compared to other types of loans. The best part about auto title loans is that you keep driving your car while making monthly payments to your lender.