Connect with us

Business

Everything You Need To Know About The Auto-title Loans

If the situation is not in your favour, you are suffering from the financial crisis, and you will get your salary after some time then the car title loans for you. If you have full equity in the vehicle and the title of the car is in your name, then you can easily apply and get the cash quickly with the car title loans.

You might have seen some advertisements regarding the car title loans, but you are not sure that what are they? How do they work? What are their pros and cons? Then don’t worry because here we will discuss them in detail.

What is a car title loan?

A car title loan is a loan that is meant for a short period (short-term loan). This loan is also referred to as the “secured loan” because in this loan you have to place your vehicle as collateral for the loan. The collateral system in this article is quite similar to the mortgage in which the lender has the authority to take back your home in case you fail to pay the amount.

Typically, the lenders offer you cash which is equal to the 25% or 50% of your vehicle’s value (but it differs from lender to lender). Generally, the auto-title loans have a due date within 30 days.

Reasons to go for the car title loan

If there is no other option and you require cash in a hurry for some emergency or need then a car title loan can be of help. The car title loan is available for everyone (who has full equity in his car) no matter what kind of credit score or history he has. But this can be a problem because the lender can give this loan to a person who has a car but he might not be able to repay it. Some good lenders check your income statement to get an idea before they can lend you the amount.

Reasons not to go for the car title loan

Most of the people think that this loan as a bad idea. Furthermore, this loan is banned in half of the states of the USA. The states which allow these loans highly regulate the lenders so that they can’t scam people.

The car title loans are one of the most expensive types of debt out there. Some of the states of the USA have limited the interest rates to 36% APR but on the other hand, some lenders charge 300% APR.

Let us take an example that if you took a loan of $1000 with 300% APR or 25% monthly fee then after one month you’ll have to repay $1000 along with $250 finance charges. 

According to the 2016 Consumer Financial Protection Report, only 12% of the people are able to repay the auto-title loans after one month. If a person can’t repay the loan within time then he has two options. First one is that he has to lose his vehicle (which was placed as collateral) or he has to roll his previous loan into a new one.

Recent Posts

Home Improvement2 weeks ago

Mastering The Maintenance: Breaking Down The Basics Of Your Ducted Heating And Cooling System

Welcome, fellow home enthusiasts! Ever find yourself lost in the labyrinth of your ducted heating and cooling system? Have you...

Business4 weeks ago

The Invisible Hands: Unveiling How Food Distributors Influence the Quality of Our Foods

Ever found yourself wondering why the tomatoes in your salad taste particularly fresh or why your preferred brand of coffee...

Marketing4 weeks ago

Webflow CMS: A Comprehensive Guide

Webflow is a powerful tool that allows you to create and manage dynamic websites without needing to code. It’s a...

Business4 weeks ago

The Three Most Important Benefits You Should Offer To Your Employees

Offering your employees a range of benefits on top of regular salary increases will really help to show that you...

Business2 months ago

Business Tips For Protecting Your Finances During A Recession

In 2024, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Green & Energy2 months ago

Air Conditioning Installation: What You Need to Know

When it comes to getting an air conditioning unit installed, can significantly improve your comfort and home environment, especially during...

Marketing2 months ago

Marketing Tips For A Gym Wear Brand

When starting a gym wear brand, there are a few things you need to do and one of them is...

General2 months ago

Social Media Marketing: What Are All The Types?

Social media marketing is a tool that is a must-have in today’s digital age. it’s very rare that businesses can...

Business3 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Business3 months ago

Remote Delivery Innovations: Case Studies from Leading E-commerce Brands

People have gone through much change in the past few years when it comes to online shopping. Nowadays, when delivery...

Business3 months ago

Why are Brits turning to online-only banks?

For years, large, conventional banks held all the aces when it comes to citizens’ finances in the UK. HSBC, Lloyds...

5 Important Web Design Considerations to Make For Better SEO 5 Important Web Design Considerations to Make For Better SEO
Tech4 months ago

5 Important Web Design Considerations to Make For Better SEO

Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...

SEO4 months ago

The Importance of Local SEO for Small Businesses

There are many different types of businesses and all of them will require online marketing however, with a small business,...

General4 months ago

Understanding The Unsung Heroes: Cool Rooms And The Importance Of Regular Repairs

Everybody loves a breath of fresh air when entering a superstore! But have you ever wondered who’s working backstage to...

Home Improvement8 months ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Categories

Archives

Trending