What is the difference in car title loan and other finance payments?
In this particular advance, a borrower receives money much sooner unlike in the other loans, which at the least take few days. Lenders of this loan make sure that the documents that you submit are genuine. There is no hassle of papers or any of your finance accounts to be verified. It is a type of surety loan, so the moneylender does not have to worry about any defaults in repayment. Negative factors while applying for a loan like bad credit history or lower monthly income doesn’t have any significance.
Papers and items needed to have this loan:
• Car ownership papers
• Driving license or any state ID card of the borrower
• Showing of the vehicle used as collateral
• Your income slips
• It comes in handy when you need fast cash for your requirements.
• No extra papers required to fill up the form and for verification purposes.
• You will receive the money in few hours.
• You can drive your vehicle even when it is kept as collateral property.
• Lenders pay minimum fifty percentage of the cost of the vehicle.
• You don’t need extra eligibility like income tax papers when compared to loans.
You should be quiet cautious while choosing a reliable financial company and find out all the options available with them. You could refer to their websites to give you valuable information about them and based on what satisfies you, you can choose the lender. The positive reviews of other borrowers will give you a better idea about the company. If you are in a hurry and want to skip the time running around from one office to another, then apply for the funds online.
You must be at least 18 years of age or above, and should have clear title. The company will keep the title papers till the repayment is done in the fixed period. The interest rate is little high than other lends, but it is suitable if you are sure of your pay back in time. Once you pay the borrowed funds, you will get your car documents back.
No loan comes for free of charge. It brings added responsibilities. It is best to pay it back as soon as possible to lessen your financial burden. The same applies with car title loans. If you are unable to pay the amount back in the fixed period, then the interest will double up. It will go on increasing till you adhere to your repayment plan. It is a better option than payday loans, as it charges less interest and gives more number of days to repay the funds. Besides, the amount lent in such a credit is way more than the payday loan, almost 50% of the cost of your vehicle.
In some cases it is seen that financial companies give maximum of one year to repay the loan without any penalty. This gives you plenty of time to bring your financial life back in order. It can be repaid on installment basis as per you wish.