Cash For Car Title Loans: When you find yourself in a financial bind, you can check into cash for car title loans. Everyone has seen the advertisements on television where you take your car title into a lender and receive the cash that you need in a quick and easy manner. They are quite simple to obtain but they can be difficult to pay off once you have them.
Cash For Car Title Loans: Attention!
- It is important that you use caution when considering this type of financing.
They are intended as a short term solution to an immediate problem and can create more financial hardship if you borrow too much.
The process for obtaining a loan of this type involves first owning your vehicle outright. There can be no other lien holders on your title. This is because your vehicle will become collateral for this loan.
- The second part involves deciding on the amount that you need to borrow.
The amount that will be allowed will be up to about thirty to fifty percent of the book value of your vehicle. So the maximum amount you can borrow will depend completely on your vehicle and the lender’s policy regarding this. In most cases however the loan is more than covered by the value of your vehicle.
Cash For Car Title Loans: What to do next?
Once you have completed the application process and been approved, the lender will add themselves to the title of your vehicle as lien holder and provide you with the cash.
The loan will be due either within a two week to one month period or you will find a lender that allows you to make payments on the amount due until it is paid off.
After you have repaid the amount, your title will be released by the lender. However if you are unable to make the payments on the amount that you have borrowed the lender is able to repossess your vehicle without any further notice to you. In addition when they sell your vehicle they are allowed to keep any amount over the borrowed amount and in some cases you will still be held responsible for the loan.
Cash For Car Title Loans: My last tip for you!
It is important that you take into consideration the amount that will become due and when. If you find you are unable to repay the full amount, you will be required to pay an additional fee to renew the loan.
This is where many people run into difficulties. Most end up renewing the loan many times over and in the end pay back more money than they had originally borrowed.