Understanding Car Title Loans – South Florida Reporter
An auto title loan is ideally a short term loan that uses a car title as a collateral for the loan. The repayment period for this type of loan is usually 30 days. With auto title loans, you are only allowed to borrow small amounts, usually in the range of a few thousand dollars. The loan is intended to serve as a short term financial solution for unforeseen small money problems. You can check at https://bridgepayday.com/title-loans-online/ to know more about title loans
One of the main advantages of auto title loans is that they are among the most common types of loans available today. Indeed, they are generally easy to access and have few restrictions and / or requirements.
Unlike bank loans, which often require many conditions such as credit score, guarantees and guarantors, auto loans have a lot less restrictions. In most cases, the applicant only needs the title of their car or access a short-term loan.
Additionally, very little paperwork is required during the approval process and the process is generally quick. Find how to refinance your auto title loan in California.
Quick access to cash
Any car owner who has a constant stream of income can apply for a car title loan. The application process is generally straightforward and you can do it online or through the merchant’s physical location. Once you have completed all the necessary paperwork, a dealer representative will take photos of your car and schedule a day to collect the title.
You also have the option of showing up with the title of the car to enable faster processing. If all is true, you will have the money transferred (or wired) to your account between 24 hours and a few days to be approved.
Credit scores don’t matter
With car title loans, the credit score of the applicant does not matter. It is about having the title of your car in hand. With tough economic times and how difficult it is for most people to maintain exceptional credit histories, more and more people cannot access conventional loans. This is not the case with auto title loans.
You keep your car
As long as you don’t meet the loan repayment terms, you keep driving your car. As we mentioned earlier, the only thing the lender needs is your car title. The car itself is not involved during the application phase.
If you stick to your side of the deal and keep paying your loan installments on time, you will be able to keep your car until the loan is paid off in full, when title to the car is returned to you.
Lower interest rate
Car Title Loans take advantage of low interest rates compared to other options such as payday loans. The lender considers these loans as secured loans and usually does not need to charge exorbitant interest rates.
You give the lender title to your car for the length of time you need the loan. Keep in mind that in addition to the interest rate, you also have to pay the lender a specific fee for borrowing the money. And while loans can be expensive at times, they are quite effective for emergency financial situations. This is especially the case for people who do not have a fully funded emergency fund.