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

Autos2 days ago

In a Car Accident? Here’s How to Find a Great Lawyer

If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...

Education3 days ago

Considering Therapy? Here’s a Few Common Therapy Techniques Explained

If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...

home repairs home repairs
Home Improvement4 days ago

Top 5 Home Repairs You Should Never DIY

DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...

Health2 weeks ago

The Power of CBD Oil for Relaxation: How to Use it for Sleep and Stress Relief

If you’re struggling to get a good night’s sleep or feeling stressed, try CBD oil. CBD oil has a moment...

General2 weeks ago

Benefits of Getting your Mobile Phone Repair

Mobile phone repair is a task that needs high skills and experience. That is why we always recommend users trust...

Home Improvement2 weeks ago

Great Ways To Clean To Get Your Security Deposit Back In Full

Moving is almost always stressful as there are tons of things to plan and do. Getting your security deposit back...

Home Improvement2 weeks ago

DIY Garage Door Repair: Tips and Tricks for Fixing Common Problems and Maintaining Your System

If your garage door needs to be fixed, wait to call a repairer. Many common problems can be fixed quickly...

Education4 weeks ago

7 Tips to Choosing the Right University for You

Are you considering continuing your education at university? If so, it can be overwhelming to decide which school is right...

Finance1 month ago

3 Ways Loans from Credit Unions Are Different From Major Banks

If you’re in the loan market, you may wonder if a credit union is the right choice. Here are three...

Food1 month ago

The World of Coffee: Exploring the Aromas, Flavors, and Benefits of the World’s Most Popular Beverage

Coffee is one of the world’s most popular beverages, enjoyed by people of all ages and backgrounds. It’s also one...

Education2 months ago

New Driver? 5 Things to Consider When Looking for Driving School

When it comes to choosing a driving school, there are many factors to consider. Not all driving schools are created...

Home Improvement2 months ago

Landscape Irrigation Systems: The Basics

If you’re a homeowner, you know that keeping your lawn and landscaping looking nice can be a lot of work....

Travel2 months ago

5 Things to Look for in Luxury Hotels

When it comes to luxury hotels, there is a lot to look out for. Here are five key things that...

Home Improvement2 months ago

Is There a Difference Between Commercial and Residential Concrete?

If you’re a contractor, you know that concrete is a versatile construction material. But did you know that there are...

Law2 months ago

5 Tips to Find the Right Litigation Firm

When it comes to selecting the right litigation firm for your legal needs, choosing wisely is of utmost importance. It’s...

Categories

Archives

Trending