Lucia Jensen, co-founder from WeLoans, said that “Title loans are short-term loans over a period of 15 or 30 days long. Typically, borrowers have seven days to repay the loan amount. Title loans are given to individuals against the value of their automobile; hence the phrase “car title loans”. It is a form of collateralized lending and is governed by state law. If the loan repayment is not made on time, the lender has the right to repossess the vehicle. The lender is responsible for returning the car title to the borrower after the loan has been repaid.”
Title loans are an alternative for people who are in need of quick cash but do not want to seek credit cards or pay high-interest rates on loans. The application process for a title loan is easier and faster than for a loan from a financial institution. Repayment amounts are lower, as well. However, there are some drawbacks as well.
Title loans come with more fees and a higher interest rate than other types of loans. People with bad credit cannot apply for title loans. Some advantages of title loans are: No credit check: You don’t have to have a good credit rating to qualify for a title loan. All you have to have is a car with title, a bank account and a job. Speed of approval: Title loans are approved within 24 hours.
Speed of repayment: Title loans are repaid in a month’s time.
No collateral: You don’t have to put up your property or other possessions as collateral.
What are some of the most common uses for a title loan?
When it comes to getting auto title loans, most people are just looking for some immediate cash to hold them over until their next paycheck arrives. The reasons behind Title Loans are endless, but some of the most common examples are: Paying the bills ,Paying off outstanding debt , Medical bills , Paying for car repairs, Paying for moving expenses , Paying for school , Personal items , House repairs , Vacation ,Wedding costs title loans can be for new or used cars. In fact, you can get a title loan for almost any type of vehicle, including: Cars . Trucks . SUVs . RVs . Boats . Motorcycles . ATVs . Scooters . Bicycles,Jet skis , Snowmobiles , Race cars , UTVs , Motorhomes , Tractors , Trailers , Campers But that’s not all! You can also get Title Loans for boats, luxury cars, motorcycles, personal watercrafts, or even a camper.