Get Rid of Your Financial Difficulties with the Help of a Car Title Loan

car title loanA car title loan is seemingly a very convenient type of loan which anyone having a car can borrow. This is a short-term loan which can be borrowed against the title of a car. Here the collateral is the car title. If you don’t have any other options for a loan, or any other financial choices, you can opt for a car title loan. There are many companies like which offer title loan to anyone even with bad or no credit, slow payments, bankruptcy or any such issues. If you are in need of finance, this is a good solution to your problem.

What Documents will You Need?

A car title loan which is also known as a pink slip loan requires the borrower to own the car outright; there should not be any liens against the car title. Your lender may ask for all or any of the following documents:

  • Original title of the vehicle proving your sole ownership
  • Identification issued by the Government that should match the name on the title
  • Any bill that can prove the residency of the name on the title
  • Vehicle insurance proof
  • Current vehicle registration
  • Recent paycheck stubs or any other proof showing your ability to repay the loan
  • Names and contact details of at least two references
  • Functioning copies of keys of the vehicle

Some lenders also need a GPS tracking device mounted in the car to ensure that they can get the right to own the car, should the borrower defaults. Some of these appliances even offer an ability to the lender to disable the car remotely.

For a car title loan, good credit is not required. Actually, most lenders won’t even check your credit, as the loan is based solely upon the resale value of the vehicle.

Interests and Fees

Car title loans are significantly more expensive than the standard bank loans. There are variations in interest rates, but in states in which interest rate is not capped, it is usually 30% per month i.e. 360% per year. This in turn means that a borrower who borrows $1000 will have to pay $1300 at the end of the month to save her/him from going into default.

You will also have to pay a lien fee of minimum $25 to $30 at most lenders. In states where there is no regulation on title lending, some lenders even charge various types of fees like documentation fees, origination fees, processing fees, key fees and more. All these fees pile up soon to extra 20% to 25% or even more of premium, apart from the loan and interests. Check to make sure to total up all the fees while working on the total cost of the loan.

Car Title Loan Tips

A car title loan is an excellent way to raise finance within a short time without much of hassle. However, you should remember certain points. Here are some:

  • Your car title should be clear. You can get the car title loan only when you are the car’s titleholder.
  • The loan you can get is up to the resale value of your car. Therefore if you are taking a loan against a new car or one which is in a good condition, you can get a higher amount as a loan than that against an older car.
  • Car title loans are perfect for emergencies. These loans are passed almost immediately, enabling you to acquire money within 24 hours.
  • Do research with sites like Wikipedia. Learn as much as possible about car title loans and the various lenders that provide them. Find out the needs. While studying about a loan of a certain company, don’t forget to read the terms and conditions. Just like you do while shopping for other loans, you should shop around various lenders and find out the best deal.
  • Research also about your vehicle’s resale value. Ensure that your vehicle is worth. It’s important for you to know this, because the lender will give only the value that equals to your car’s resale value.
  • Make a plan. Check exactly what amount you require to tackle your current financial situation. Do research about your car. Also do research on various lenders. Don’t forget to make a plan about how you are going to repay the loan. Your plan should contain your potential actions and timeframes to repay the loan.
  • Ensure that you are dealing with the best lender. For example, TCTitlePawn is a reputable car title loan lender in Georgia and Florida who know that taking loan is stressful and so, they make the process friendly and less stressful by availing the loan to you within as little as 30 minutes.
  • The repayment period of car title loans is short. This period usually ranges from 15 to 30 days. You are expected to repay the loan within this period.
  • Car title loans carry a high rollover rate. If you are not able to repay the loan within the stipulated period, the amount will be carried forward to the next date. However, it should be remembered that the rate of interest hikes every time the loan is carried forward.
  • Once your loan is passed and secured, act fast. Use this cash to regain your finances and then act on getting the car title loan to be paid off. You can also make small payments all through the month and lessen the principal. By doing this, you can pay back the loan quicker.
  • Negotiate with the lender to reduce the interest rate. If your financial situation is miserable, such as you have lost your job or are divorced lately, tell this to the lender. Divulge about your particular situation to the lender and they may be convinced to reduce the interest rates and may offer other such more advantageous loan terms.

TCTitlePawn offers you loan which you need not pay off entirely in one month, but you should pay at least the interest. If you couldn’t pay off the loan in full in the first month, you can extend the period as required. They differ from other lenders in that they charge interest only on what you still owe and not on the loan amount. Unlike the traditional vehicle loans, you don’t obligate yourself to 12, 24, 36 or even 72 month payment. You can repay the full loan in the first month and save yourself from the additional interest.

Take benefit of car title loan wisely so as to pay it back soon and get rid of your financial difficulties.

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