How Do Title Loans Work
A Better Understanding Of How The Car Title Loan Process Works
Loan contracts come in all kinds of ways with varied terms. Some range from a simple verbal arrangement with family members and friends while others are a bit more complex and usually involved a financial institution.
A financial institution – bank or credit union – tend to loan money to people who want to purchase something big – car, home or even a college education. It’s not often they’ll offer a person loan or payday advance to pay for non-essential items such as plumbing problems, car repairs, etc. If money is needed for something emergent or to make your life a little less hectic, it’s important you learn how each loan works.
What’s The Loan Process Like?
So, it’s important to know how do title loans work. The first thing you need to contend with is the reason you’re asking for a loan. You can attain a loan for all kinds of reasons – school loan, vehicle loan, mortgage loan, payday advances and personal loans. The loans you need will be based on your intended use. Each type of loan has its own terms and conditions such as:
- Payment due dates
- Loan lifetime
- Interest rates
You also have the option to choose from unsecured, secured, closed-ended and open-ended loans.
It’s so important to know the way these loans work to ensure you find one that’s right for your financial needs. What should you know about each of these loans?
- Open-Ended Loans – These are loans you can borrow all the time – think credit card or lines of credit.
- Closed-Ended Loans – This is a certain amount of money you can borrow but doesn’t renew after you pay it off.
- Secured Loans – These loans need collateral to be approved such as car title loan. If the borrower fails to pay back the secured loan, the lender can repossess the asset to cover the money they are out for the loan. If you do an auto title loan, this means losing your vehicle to the lender if you default on the loan.
- Unsecured Loans – There is no need for collateral, but the interest rates on these loans tend to be higher. You may pay the fees in the agreement, which can add up. Some lenders will charge 25% of the amount you borrow. Make sure you ask about their APR before applying for a loan. APR stands for annual percentage rate and lets you know how much it will cost to borrow the money for a single year. They must provide you with that information and the loan’s overall cost – principal plus interest.
What’s The Process Of A Title Loan?
You finally have some idea of how does title loans work and the kinds you can get. Now, it’s time to take a look at title loans and how they work. Lenders will provide car title loans for a certain amount of money for a minute period of time. Borrowers get these loans by putting up the title to their vehicle – be it a car, motorcycle or truck. This is the collateral. The borrower will pay a fee along with the original loaned amount, and often have 30 days to pay the loan back.
That’s the process of a title loan. And, if you need money now, you can start the application process in a store or online. It’s not hard to do. You just go to the lender’s store or their website. You show them several documents – the application, vehicle title and picture ID. Lenders often ask for vehicle pictures or will examine the car themselves to ensure it’s in good condition.
It’s not uncommon for some lenders to ask for an extra set of keys or have a borrower purchase a roadside service plan. After that, they accept the application and request the vehicle title. If the borrower agrees and the contract is signed, they will need to pay the loan back.
How Does A TitleLoanser Loan Work?
Now that you understand the basic concepts of title loans, you can look at the various options at your disposal. One such option is TitleLoanser, who make it easy to attain a car title loan in less than an hour. In fact, you can get your money in just 30 minutes.
The whole process is extremely easy and simple.
You can either apply through the website or stop by a TitleLoanser location. You’ll need a lien-free vehicle title and a government-issued ID (state ID, driver’s license or passport). If you apply in person, staff will do a quick survey of the vehicle you’re asking money for and determine what amount it’s worth. This will allow you to attain the money you need and still drive away in your own vehicle. TitleLoanser will give you the title back once the loan has been repaid.
The process to ask for and attain a car title loan is easy with the helpful associates at TitleLoanser. Our representatives know how stressful asking for money can be, and we want to provide you with the cash you need when you need it without any hassles. We don’t do credit checks, offer highly competitive interest rates and provide you with a plethora of time to repay the loan. Best of all, you can still drive your vehicle.