For someone who is considering taking a car title loan, you will be required to give the clear title of the car as collateral for the short-term loan. Other names that are used to refer to a car title loan are title pledge, pink slip loan, or a title pawn.
Some companies offer car title loans basal equity of a vehicle instead of the clear title of the vehicle of the vehicle. One can get this type of loan and payback within a number of days or a month. One must know that these loans have a higher rate of interest compared to other loans.
These loans are not suitable for all individuals especially if one will be unable to pay the loan after a month. The requirements for taking a car title loan are to fill a loan application form, bring the clear title, submit a photo ID, present the vehicle, show proof of insurance and submit a set of keys to the lender.
When one is taking a car title loan, it is important to review the loan terms before signing for the loan. Before a client takes a loan, the lender must disclose late fees, document fees, processing fees, title charges, liens charges and loan origination fees so that the client is well informed about all the charges that are part of the loan. Some loans may have add-ons and borrowers must clarify with the lender whether there are such add-ons in one’s loan as this would raise the loan amount.
One can apply for a car loan from an online platform or visit a physical storefront that offers car loans. Only when the loan is paid off can a borrower get their car title back after submission during the approval stage. Repayment of these loans can be done through automated repayment systems, personally visiting the storefront with payment or through an online system.
Lenders may require a borrower to put up a GPS device so that they can be able to know the location of your car if they need to repossess it. For easy repossession of cars, lenders may ask borrowers to install a starter interrupt device which will limit the ability to start the ignition in times of repossessions.
One can get an additional loan which comes with additional fees and interest to the amount originally borrowed if they cannot make payment within the loan period time. Those who are unable to pay back their loans lose their cars to the lenders who repossess them. Before one decides to take a car title loan, they must carry out good financial planning to determine how they will pay back the loan in good time.