A car title loan is a small amount given for a short time. To avail a car title loan, remember the title of your vehicle must be given to the lender. Regardless, of the vehicle you own, a truck, a car or some motorcycle. You must also pay the borrowed amount with a fee to the lender. This is mostly expected to be repaid in 30 to 90 days time. Nevertheless car title loans can also take to be expensive, in case you fail to repay the owed money. This is because on non-repayment your vehicle will be taken away by the lender.
Other ways of borrowing
There are many other ways of borrowing money and they are from:
Friends or family
Credit card
Credit union or a bank
You may request more time to pay bills or talk to seek help by talking to a credit counselor.
How do car title loans work?
Getting car title loans online has become prominent mainly due to its convenience and fast work. All you have to do is apply online and the steps are:
Show the lender your application, car, car title and photo ID.
The lenders may demand your car keys extra copy or may request to get a roadside service plan.
On receiving approval for your car title loan, he will offer the money and will have the car title with him.
Repaying the loan is offered 30 days as time limit, where you must pay the borrowed amount with a fee to the lender.
Car title loan cost?
Car title loans lenders take monthly fee. This fee may be as much as 25% of the borrowing amount. For instance:
You borrow for 30 days $1000
The 25% monthly fee = $250
The amount you must repay is $1250 after 30 days.
Unable to repay the money?
There may be possibilities that you are not able to pay the money due to the lender in the said time. At such times, the lender allows you for a rollover such that you borrow money for the next 30 days. Rolling over the loan means you pay a monthly fee extra. But, in case you roll over several times on the loan taken, you will end up paying more to the lender.
Finally, if you are not able to repay the money you owe to the lender, he may take away your car and this is referred to as repossession. The lender may consider selling the car to get his money.
However, there is a problem that if the lender chooses to take away your car, you suffer with transportation, resulting in reaching late to school, work and other places.
Remember, the car title loans online refer to small amounts and for short time, just for a 30 days period. Just go for it in emergency, but if you are unable to repay the lender by the date with the interest fee, you end up losing your car.
Haris is a blogger who loves to write about latest marketing trends, finance, start-ups, business etc.