Car Title Loans – Giving You a New Opportunity
Car title loans is another name given to payday loans, where a small amount of loan is given to the borrower at a high rate of interest, on the security of the borrower’s car. Although, it is considerably easier to get this type of a loan, it is much more risky than normal loan; if you do not pay off your auto car loans on time, you could lose your car that is of a much higher value than the loan you have taken.
Make Payments On Time
When you decide to take car title loan, you should follow a strict routine of repayment and pay your dues on the due date. When you take car title loan, you have to provide a spare set of keys to the lender. If the loan is not repaid on the due date, the lender will sell off the car a repay the loan from the received amount. In some states, there are laws, which allow the lender to keep the balance amount after sale of car; which means, if the car is sold for a higher value, the amount above the loan and interest will not be returned to the borrower.
When you take car title loan and place your car as collateral, you still pay a huge amount of interest on the loan you take. Sometimes, the interest is more than 300% per year. It is much better to take car loans for a longer period than car title loan, which you take for a mere two-three weeks. Moreover, the loan itself is of such a small value that it rarely covers half the value of the car.
The best medium for car title loan is the internet. Internet is also the best place to get an easy online car loan. You will find numerous lenders offering competitive rates and offering various discounts for customers, who want to purchase their car from them. You just have to make the right choice of lender and the car you want to purchase. The approval of your car loan is done on the internet in a few hours of filling in the online application form.
Car title loan are always beneficial for the lender, as he is getting an asset of a much greater value than the loan he is giving. If the borrower defaults in payment, the lender can forfeit the car and recover the cost of the loan. Car title loan is not advisable for persons with limited income, as there is greater risk of default in payment. For these types of customers, it is better to take a car lease, where you keep and maintain the car, as if you own it and return it to the owner once the lease is over, in tip-top condition.