Title loans are the most common types of loans that we have today. With title loans, you are given the loan against collateral used as security for the loan. Most of the time, these loans are given against car titles.
In case you have a car, the car title will be used to secure the loan. Unlike other types of loans, title loans are relatively affordable compared to other types of loans. You use your car title as security means that you do not have to pay high interest. Here is all you need to know about title loans:
How Much Can You Get For A Car Loan?
You can get from 25 – 50 % of the car value. For a car loan, you will get a small percentage of the value of your car. This is because your car is a depreciating asset, and the lender will take a lot of risks.
The amount of loan that you can get will depend on the type of company that you are using. The FTC regulates title loans, so you might not get anything above 50%. It is important to beware of companies that claim that they can offer more than 50% of the title.
What Do You Need To Get A Title Loan?
In the modern-day, it is possible to get a title loan online. You do not need to visit any lender to get a loan. All you need is to present your documents online to prove ownership of the car.
You will be required to scan the documents and present them online. The best way to go about it is to show documents like car insurance and also residence. It will depend on the lending company that you are using the car title loan.
How Long Are Car Title Loans?
Car title loans are short terms loans. They are in the same category with payday loans, so they are short term high interest loans.
When taking car title loans, make sure that you will be able to repay the loan in the shortest time possible. Most of the car title loans are between 15 – 30 days, so you need to be careful about whether you need the loan.
Do You Need Good Credit?
Car titles are short term loans. You will not need to have good credit to qualify for the loan. You can get the loan even with poor credit since it is not a qualification factor.