Did you know 25% of Americans have a personal loan? Many Americans who live paycheck to paycheck don’t have enough saved to cover emergencies.
Do you have a car title and need cash? Your car title can qualify you for a loan by only completing a few simple steps.
If you’re wondering whether or not a car title loan is the right financial option, you came to the right place. Read on to learn how cash for car titles loans work.
What Are Car Title Loans?
A car title loan is a type of short-term personal loan with very few requirements aside from using your vehicle as collateral. The appeal of title loans is that they often don’t check your credit, so individuals with no or poor credit can apply.
This is also a secured type of loan since you will be required to put your car title as collateral to secure the loan. Car title lenders can let you borrow between $100 up to $10,000.
How Does the Process Work?
If you want to obtain a car title loan, the first step is to apply online or directly with the lender. The lender will have to make sure there are no liens on your car title.
You don’t qualify for a title loan if you’re currently financing your car.
Depending on the lender, your loan can equal between 25% to 50% of the car’s value. Keep in mind that the lender won’t let you borrow more than the value of the vehicle.
Once approved, the lender will hold on to your title until the loan is paid in full.
Before you can access the money, you will have to provide a valid ID, proof of employment, and a current insurance card. Some lenders might even require you to give them a spare set of keys.
Visit easytitleloans.ca to check your rate.
Car Title Loan Risks and Costs
Although care title loans are easy to obtain and cost less than other personal loans, you should also be aware of the risks.
Car title loans typically have lower interests than other loans for individuals with poor credit. However, you can still get an interest rate as high as 25% on top of additional fees.
You can reduce the amount of interest you pay by paying back the loan in the shortest time frame possible.
Before you borrow from a little lender, you must do it responsibly to avoid worsening your financial situation or getting your car repossessed.
Cash for Car Titles: Are You Ready to Start the Process?
Now that you know how cash for car titles loans work, you’re ready to start the process.
Remember, car title loans are a type of short-term loan that allows you to put your vehicle down as collateral. This is a great loan option if you don’t have an established credit history and need cash fast.
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