1. What is a Title Loan?
A title loan is a way that you can take on the collateral of an asset. The asset can be a car or even a house. A person borrowing money, thus, will allow the lender to claim a right of lien over his car. The car will become a security for the repayment of this loan in future.
In any title loan contract, the borrower will have to hand over the title of the asset, like the car title, to the lender. In exchange, the borrower gets the money and when this is eventually repaid, the car title is returned.
2. How Fast Can I Get Funded?
Normally the application gets approved within 5 minutes, provided you have everything in place. However, getting everything in place can take time and even prior thought and consideration. You need to keep everything handy for a quick application and approval process with your lender.
After the approval, the time it takes to receive the funds to be deposited in your account depends on the lender’s capabilities of processing the credit request. However, any trustworthy lender can usually get it settled within 5 to 6 hours after the approval of the loan.
3. Can I Refinance My Title Loan?
Car Title Loans can be difficult to repay for some people, as interest charges can be high, depending on the lender. Thankfully, there are some options available in this title loan refinance help guide by facethered.com
Refinancing options include quick and short-term solutions which can give you quick cash to settle your installments immediately. However, for a more effective solution in the help guide, look no further than taking a refinancing loan on an already existing car loan as well. This is a flexible, relatively stable option since you can take your time in repaying the refinancing loan. There are other solutions available in the help guide which can help you as well.
4. Can I Still Drive My Vehicle?
Yes, you can definitely continue driving your car even as its title has been pledged as collateral. It is only when you fail or default on your own repayment that your car will be taken away by you since the title of ownership will now be with your lender.
You also need to be sure that your vehicle is owned completely by you. By this, a rented vehicle or a car borrowed as a part of some contract with another party cannot be pledged as collateral or security for a car title loan.
5. What Do I Need to Get A Title Loan?
According to ponbee.com, the first thing that you need to get a Title Loan is complete equity or ownership of your vehicle. This does not only mean that you have bought your vehicle on your own. You also need to be sure that you have paid all your car installments. This indicates that the bank from which you borrowed the cash now has no right of lien over the vehicle.
In a way, this is an advantage for both you and the lender. The lender is more willing to give a title loan on the basis of complete equity. And you can still continue to enjoy the usage of your car without any particular hindrance.
6. What Is The Average Interest Rate On A Title Loan?
As said in the last answer, this way of borrowing money can be expensive in terms of interest. Since the assets being pledged as security are valuable and completely bought off by the borrowers, the lenders can charge high rates of interest on the same. It can be something around 25% on a monthly basis and that is quite a lot to pay.
In addition to your interest, you might also have to pay some extra costs and charges for your car title loan. These need to be decided and considered when choosing a lender in future.
7. Does My Car Need to Be Paid Off To Get A Title Loan?
Yes, as said before, your car needs to be settled and paid off to ensure that the car title actually belongs to you. It is only then that you would qualify for a car title loan. So, you have to ensure that this is done before you actually apply from a lender.
8. Can I Get A Title Loan If You Have Bad Credit?
That depends on which lender you choose. Generally, most lenders don’t really factor your credit score when approving your application. Essentially, your credit score will be irrelevant if your car has a valuable title and can be pledged for good collateral. However, your ability to repay the money back will be determined by your credit score. Moreover, if your credit is not good in the first place, it can only make it even more difficult for you to repay in time. So, just make sure that you don’t land in more trouble after that.
9. Can I Get A Loan If I Don’t Have A Job?
Yes, you can certainly, though the lender might be concerned about your ability to repay the money without a steady stream of income. Generally speaking, it would be always preferable to have a job first and then buy a car and then opt for a car title loan. But given today’s rather unpredictable life scenario, anything might happen anytime. So, to be prepared for this unpredictability, you should have a job or at least healthy savings to help you repay the money in time without any chance of default.
10. Can I Get A Title Loan Without A Car Title?
No, of course, not. That is not possible at all. As said even before, getting funded and even qualifying for it needs you to have complete equity on your car after having bought it off completely. So, you need to be necessarily sure that all your original car payments have been made.
A car title loan is a quick and hassle-free way to get quick money at short notice. However, there are a lot of terms and conditions as to how it works and you should be aware of them all before you make a definite decision.