How to Find a Car Title Loan Online
Posted by Angel on September 9th, 2019
Finding title loan lender is now easier than ever, majority of title loan lenders now offer online application for their customers. This has made it easier for customers to easily apply for title loans when they need quick and emergency loans.
Usually when people take out a loan, they start well by making prompt payment but the problem gets to crop up down the line; usually between the fourth to sixth month. They begin to miss payment dates and sometimes even don’t pay up and will not communicate with their lender. This begins to be a major issue for the lenders. Now the question is, will I go to jail for failing to pay my title loan? We will provide an answer to this question in the sections that follow.
question according to the law, but before that, you have to understand more about title loan itself.
Will you go to Jail if you default on your Title Loan?
No you will not be jailed if you default on your title loan but you will risk losing your asset. If you default, the state laws prohibit threats and forceful takeover of your car but with the right legal proceedings, your lender might still win the right to repossess your car or asset.
What do Most Lenders Need to Sign Off on Auto Title Loan?
Most lenders will require collateral in the form of your pink slip or title instead of requesting for your proof of income. For auto title loans, your qualification is not based on your credit score, it is based on whether you have equity in your car. To qualify for an auto title loan, you have to own your car free and clear and you have to sign over ownership to your title lender. The loan company will give you a loan amount of up to 50% of the value of your car. Your title or pink slip remains with your lender until you have paid off the loan.
How Much Does a Car Title Loan Cost
A title loan can cost up to 20 – 25% interest rate monthly. This amount is high because your lender is also managing the risk involved by getting as much in the form of rates and charges during the period you are paying off the loan, this is where they make their money. The Annual Percentage Rate (APR) can be up to 300%.
What Happen When you Default?
Default on title loan is when the borrower fails to pay the loan as agreed upon in the loan agreement. When you default on your online title loan, your lender may decide to repossess your loan depending on how you are able to handle the situation. Some states can give a grace of certain period of time before your lender can repossess your car, while in some cases, repossession can be immediate.
If your car is repossessed, it will be auction by your lender and the money will be used to cover the balance you owe on the car. It is important that you understand what your lender states concerning repossession. This can help you a great deal.
In order to avoid the risks and problems that come with title loans, you can consider other loan methods like borrowing from your friends and family or leveraging on your savings to get a loan.
Read more at http://cartitleloansfinance.strikingly.com/blog/would-a-car-title-loan-hurt-my-credit.
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About the AuthorAngel
Joined: August 28th, 2019
Articles Posted: 10
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