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

Business2 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle3 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing3 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Business3 months ago

Avoiding the Wrong Kind of Growth

Growth is vital for any business – some models, like tech start-ups, are built around periods of dramatic, explosive growth...

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...

Tech6 months ago

What Is The Difference Between Cyber Attacks and Cyber Threats?

If you own a business that uses the cloud to manage workloads, you have probably heard of the terms cyberattack...

Marketing6 months ago

3 Types of Marketing Every Small Construction Business Should Do

Construction is a very saturated sector, whether you’re a large or small construction company, so marketing should be at the...

Business7 months ago

How Relevant Life Insurance Plans Can Future-Proof Your Business

Last year, UK inflation reached the highest level that it had been for decades. The markets became unsteady and nervous...

Autos7 months 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...

Education7 months 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 Improvement7 months 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...

Health7 months 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...

General7 months 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 Improvement7 months 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 Improvement7 months 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...

Categories

Archives

Trending