There are lots of financial products associated with vehicles. Auto loans and auto leases are the most common ones. However, there’s a third financial product related to vehicles that’s equally as useful but half as well-known as the previously called ones: automobile title loans. An auto title loan at TI Financial Services is a really versatile kind of loan which works very much like a payday loan, with the sole difference that it belongs to this bonded loan group.
This article concentrates on car title loans, it is an explication in their very nature, on which they demand as financial products and about the necessary prerequisites for approval.
Car Title Loans
This sort of loan is, as stated before on this guide, a secured loan. You borrow a sum of money by pledging your car for a security for your loan. The amount of money you can apply for ranges between $601 and $2500 more or less. As you can see, this loan at can be compared to a secured form of a payday advance. It is also a short-term loan, usually lasting between 15 and 30 times in the slightest. If you are not able to repay it in the end of the loan, you will have the ability to “roll it over”. If “rolled” over, the interest rate on the loan will accumulate.
The tricky thing about this loan type is that in case for any reason you don’t repay it after it has been “flipped” the maximum amount of instances (by law, 6 days), you may have your automobile. The interest rate on automobile title loans, exactly like in payday loans, is extremely large. Perhaps even higher than a cash advance loan. The standard rate is approximately 25%, or a 300% yearly rate.
Vehicle title loans at www.tifaq.com are meant to be used only in an emergency, otherwise, if used frequently for common purchases, they constitute a very bad deal for the consumer.
Auto Title Lenders
These are the creditors offering auto title loans. They create an awful high amount of profit from the interest rate that they charge on the loan, and sometimes will do anything to lure you to apply for one of the own loans. They will focus on poor credit and older men and women. If you’re going through a rough patch and you are in need of cash, applying for a title loan involving your car probably will not be the best idea. Try and find other sources of fund since in the long run, the rate of interest will end up eating up for debt, and you will not benefit from this at all.
Many times, these lenders call themselves 601 lenders. Why is this? Since they could simply charge high interest rates in the event the loan is above $600.
Vehicle Title Loan Requirements
Qualifying for this kind of loan is quite simple. It may be somewhat harder than qualifying for a cash advance loan, but easy nonetheless. The first and most important requirement is that a car. You must be a car owner (which must be free from exemptions) and also be in possession of this title. You must also be utilized and be an American citizen with at least 6 months of residence in your existing home.