What is Car Title Loan ?
Car title loan is a type of short-term loan where borrowers use their vehicle's title as collateral to secure the loan. These loans provide individuals with quick access to cash.
How Car Title Loan Works ?
Borrower temporarily transfers the ownership of vehicle to the lender while keeping possession of the vehicle & using it as usual. The lender holds the car title until the loan is repaid in full.
Who is Eligible for Car Title Loan ?
To be eligible, individuals must own a vehicle outright, without any liens or outstanding loans, and have a regular source of income to demonstrate their ability to repay the loan.
How Much is Car Title Loan ?
Lenders typically offer a loan amount that is a percentage of your vehicle's appraised value, often ranging from 25% to 50%. On average, car title loans can range from $100 to $5,500.
Repayment of Car Title Loan
Car title loans often have short repayment periods, typically 15 to 30 days, but they can be extended or renewed for additional fees. If you fail to repay the loan, the lender can repossess vehicle.
Car Title Loan Interest Rate
Car title loans usually have high interest rates and fees. The interest rate can vary significantly between lenders, but it's not uncommon to see rates of 25% or higher on a monthly basis.
AdvantageS of Car Title Loan
Main benefit of car title loans is that they do not require a credit check. Instead of focusing on creditworthiness, the lender primarily considers the value of the vehicle as collateral.
How to Get Car Title Loan ?
To get a car title loan, visit a lender with a clear title to your vehicle and receive a loan based on its assessed value using the title as collateral.