Auto title loans come in handy when you are facing a short-term financial crunch or are burdened with a load of unpaid bills and you need some money to tide you over till your next paycheck. These loans are also perfect for people who are otherwise ineligible for a bank loan because of a poor credit rating.
How to get a loan against your car
When you are in need of urgent cash, you can pawn your car and avail of this loan under various names like “Car title loans”, “Auto title loans”, or “Title Loans”. Put in simple words, using your car as your collateral, you are provided with instant money. You do not have to go through the time-consuming process of the usual paperwork and other formalities. Even better, you can use your car during the loan period.
How to apply for an Auto Loan
The condition of your car determines the loan amount that can be sanctioned, and also its resale value. When applying for auto title loans, these are the documents required
To make it even easier and more convenient to avail of auto title loans, many lenders allow you to fill out the application form.
How to repay the loan
The lender returns the title certificate and extra key to you once you pay off the loan amount and interest owed on it. If you cannot pay the loan off within the initial repayment period, many lenders will rollover the loan and give you additional time to make the payments.
As with most loans of this kind, there is a price. You do get instant cash at a short notice, but the interest rate can be quite high. You might end up paying much more than the actual value of your car. If you end up not being able to repay the loan in time, you might even have to forfeit your car. Therefore before going in for auto title loans, weigh the pros and cons carefully.