Auto title loans
Are you running short of cash for an urgent need and an immediate financing option. If you are caught in any such situation and have the ownership of a vehicle then you can easily cash money by putting the title of the vehicle as a collateral for the finance. Such loans are called as auto title loans.
Auto title loans are secured short-term loans that are taken against the title of your vehicle. In broader terms you can describe these loans as being similar to the payday loans. It is easy to qualify for these loans as there are not much of criteria and lenders do not hesitate to give out these loans.
Features of auto title loans
These loans as mentioned are short-term loans usually ranging for a period of 30 days and are taken for small monetary requirements. When you apply for these loans you are supposed to give the title of your vehicle to the lender along with a set of your car keys.
However, when taking these loans you can have the car and keep using it as long as you make the payment on time. But in case you fail to pay back the loan the lender can take away your car.
Before you take these loans you should keep in mind a few things that the interest rate charge on these loans is high and if you keep delaying the payment then you can end up paying more than the value of your car. It is hence advised that you should stay away from such loans unless it is an emergency.
For being applicable for these loans you need to fulfill the following criteria:
- You must be the owner of a vehicle with a clear title
- The value of your vehicle should be at least $4,500.
- You should have proof of the vehicle insurance
- You should have a proof of your employment
- The availability of a spare key of your vehicle
- A recent copy of you phone or utility bill for your present address.
Dark side of auto title loans
When taking an auto title loan it is important that you should also be aware of the disadvantages of these loans. Let us see why it is usually said o avoid these loans.
- The high interest rates: These loans have exorbitant interest rates and can ultimately cost you more than the amount that you have borrowed. When calculated on an annual basis the interest rate on these loans can go up to as much as 300%. Besides you are also required to pay a processing fee of $25.
- The loan value: Usually lenders offer up to 50% of the value of the vehicle as loan. But at times this can be much lower than that. Moreover, if you fail to make the payment on time then you would have to part with your vehicle.
- The
debt problem: These loans are most of the times viewed as debt traps for
borrowers. It is difficult to meet the payments on time because of the
high interest rates.
The brighter side of these loans is that they are provided to anyone regardless of the credit score and do not require a long processing time. They are good in need of emergency.
Applying for these loans
When applying for these loans you can either apply online or walk into the loan office of the lender and apply in person. There are many companies that also provide phone application facility.
You are required to provide basic details about yourself like name, address, social security number etc. Once that the lender verifies your personal and employment details and approves you of the loan, you are required to provide the title of the vehicle to the lender and a set of keys of the vehicle. After this the money is transferred into your account and you can use it for the purpose for which it is borrowed.
The whole process would take you just 24 hours and you can have the money in your account on the next day.
Read before you sign the agreement
When you apply for these loans it is important that before signing you should make sure that you have read the terms of the loan carefully and also gone through the fine print. Also make sure that you have a pay back plan in case you are unable to pay off the loan on the due date. You can get the title of your vehicle back only once you have made the payment on time.
Moreover if you wish to roll over the payment towards the loan to the next month you should make sure that you pay some amount in the previous month and inform the lender in advance that you wish to do so.
There are a number of lenders that give out these loans. Some of them are mentioned below.
They offer 5 programs on auto tile loans. You can contact them at Fax: Southern Nevada - 702-880-1013; Northern Nevada: 775-358-8105.
They offer on the spot approval for auto tile loans. You can contact them at 6148 N. 7th St, Phoenix, AZ 85014, Phone : 602-264-3640, Fax: 602-285-9447.
They offer auto title loans at half the legal rate. You can contact them at phone: (602) 264-5554, 2641 W. Indian School Rd., Phoenix AZ. OR at phone: (602) 765-3000, 12609 N. Cave Creek Rd., North Phoenix. OR at phone: (480) 610-2770, 1423 S. Country Club, Ste. 9, Mesa. OR at phone: (928) 772-3548, 6616 E. 2nd St., Ste. B, Prescott Valley.
They give up to $2,525 as auto title loan. Contact them at 667 El Camino Real Redwood City, CA 94063, Phone: 650-365-5626. OR at 628 N. Market Blvd., #2 Sacramento, CA 95834; Phone: 916-929-0895, Toll-Free Phone: 1-800-449-7300, Fax Application To: 1-949-365-1253.
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