The user of cars to secure loans is getting popular with many financial companies and banks offering this facility to those who are in need of money. Car title loans are the loans that are offered against car title. The bank or the finance company would take up the car title as the collateral for issuing loans to the car owners. There are also different types of car title loans available in the market and you will need to choose the one according to your financial need.
There are several reasons why someone needs a loan. However, one can now get a loan against their car title. It might be that you need to pay some bills or need some cash to meet your immediate financial needs. Well, you can now use your car to secure a loan. All you are needed to do is approach a financial institution or a bank with the car title and apply for a loan against the same. You can make use of this asset to meet your financial needs and repay the loan on your next payday or as per the payment terms set by the bank or lending company.
Car title loans work just like the other title loans and there is nothing special that you are required to do. There are some banks or companies who take possession of your car along with the car title and return them only when you repay the loan. The loan amount depends on various factors like the model of the car, year of manufacturing, the distance the car has already been used for, condition of the car etc. Now, depending on all these factors, car owners can expect to get up to 50% of the current valuation of their car as loan.
The rate of interest on such loans is huge and hovers somewhere around 300% and if you are unable to repay the loan, the car would be confiscated by the bank or lending institution. Though the interest rates are higher, still there are many people who apply for the car title loans on a regular basis. Some of the key advantages of car title loans are instant cash disbursal, credit scores are not taken into account and the borrower is free to use the money for whichever purpose he wants.
If you are having a lot of trouble getting a loan then you can use your car title to secure one. Neither does your credit score nor does your income source is a determinant factor for such loans so you can easily expect to secure a loan at will. Just be ready to pay up a hefty interest on such loans. You can submit an online application for such loans and in some cases you can expect your loan to be disbursed within a day or two.