Guide to Getting a Title Loan
Do you need money, but there are too many hurdles along your way as you try to access credit facilities? Do you feel you are going nowhere with those processes? You need to calm down and take a different approach. Have you heard of title loans? Here is your chance to learn more about this facility, and how you can make the most of it.
A title loan is defined as a mortgage in which you provide an asset as collateral for you to access the funds you need at the moment. Title loans are quite popular and with good reason. The first is, no provider will ask for your credit rating when processing your application to see if you qualify. You can, therefore, access this facility even when you have a poor credit rating. The other reason people like it is it is quite easy to apply for it, more so when you need low amounts in funding.
Title loans come in several forms, the most common being the car title loans. You can access a car title loan when you own a car, which gives you the right to sign over its ownership to the title loan provider, built you settle your repayments. You can access loan amounts at or higher than 20% of the car’s current value. You do not have to give up the use of the car during the loan period. You can still use it as you normally would, and get back the ownership papers once you complete the payments.
The amounts in questions are normally not too high, making it possible in certain instances for you to pay back the money in one installment within a month. You can still make use of the installment option, which can last for as long as two years. Failure to service the repayments s agreed, and a repeat pattern of such failure, the car will be instantly repossessed by the loan provider. They can also proceed to impose heavy fines on your repayments, thus making you pay even more for such inconveniences.
As expected, such a loan where there is no credit check will have a high-interest rate as compared to the conventional ones where they check your rating. You, therefore, need to be prepared to make those payments. The sooner you finish repaying the loan, the less interest you will pay. The longer it takes, the more money you payback. It is therefore advisable for you to think of taking a title loan only when it is necessary. An example is where you are sure to make so much more, to cover those interest rates without incurring losses. If you also have an emergency, such as a sick relative, then you may have to take it.
It is important for you to also focus on approaching a reputable and well-established title loan provider. Check to see how they handle their customers and what other favorable terms they have in place. One that offers competitive interest rates while handling their customers with respect and excellent customer service is worth the consideration.