If you have used all the options of obtaining money, do not worry anymore. There is one more good option with you and that is your car. You can get a car title loan that will get you out of financial misery. Car title loan is a type of loan that allows you use your car as a collateral for the loan. You exchange your car title for the needed amount from the lender. You get to drive the car as your own pending the time you get to pay up the loan. However, an inability to pay up the loan can leadto the loss of your car to the lender.
How does theCar Title Loan work?
It is simpler and quicker to get a car title loan when you own a car that’s paid off. You will have to provide the car title to the lender and in return, he will give you with money.Various car financing companies and lenders offer online loan approval without any unnecessary formality or stress. They make use of the help of the internet to reach maximum clientele. Also, many car title loan lenders design software applications for mobile to allow you to see how much loan amount you will get for the car title.The loan comes with a high rate of interest because it is a short-term loan. While getting the loan approved, the lenders consider the value of your car instead of your credit score. It is very possible that a few lenders may even require car insurance. The loan amount depends on three basic things:
1) Your car’s value;
2) The amount of cash you need;
3) Your ability to repay the loan.
What is thedifference between Auto Pawn Loan and Car Title Loan
When you apply for an auto pawn loan, you will have to provide your car along with the clear title of the car to the lender. The lender will keep the car as security for the loan. With this auto pawn loan program, you will receive more cash since both the car and the car title are in the possession of the lender.
What happens when you are not able to make Payments?
If you are not able to make the payments on the loan as scheduled, you may lose your only car. However, the lender can allow you to keep the loan for one more month after the date is due. The process is called “rolling over” the loan.
If you are not able to make payments even after rolling over the loan for you, the lender will repossess your car. He then sells it in an auction to recover his money. So, it is very important that you pay off your dues in the scheduled time period.
A car title loan is one of the best options to get quick money when you need it the most! But, remember to have a plan for ensuring regular payments. And, immediately you have a plan ready, it will get you out of any financial misery and save your car from repossession by the lender.