Car title loans refer to short term loans that are usually within a period of 30 days. You use the title of your car for securing the loan. If you are unable to repay the loan the lender can take ownership of your car and sell it to get back the money owed.
Bad Credit and Low Income
Car title lenders make it possible for people who have bad credit scores or do not have high levels of income to borrow money when they need it urgently. It is important for consumers to make loan repayments to avoid the repossession of their vehicles. If you have financial difficulties, a car title loan is a good short term solution if you have problems with your credit.
The loans come with interest rates to cover the short duration of time of the loan. Car title lenders will typically issue loans for a period of 30 days and if you are not capable of paying within the agreed period, the lender may roll it over into the following month. The amount of money that the car title lender can loan you is determined by the overall retail value of your vehicle.
Legally Binding Contract
The lender establishes the value after carrying out an appraisal. If you do not pay off your loan, the law allows the lender to repossess your car and sell it. The lender cannot take legal action against you if you do not pay off the loan.
According to the legal contract, the only course of action that can be taken by a car title lender is to repossess your car and recover the money owed by selling it. Car title loans Sunnyvale provides an easier way for people to get quick fundingfor their needs.
The law defines vehicles as any type of vehicle driven publicly on the roads and highways. The loans can only be available to individuals who own vehicles because the titles of the vehicles act as collateral. If you have a car loan and still have money to repay, you will not be able to get a car title loan because the title will be in the bank’s possession.
Your car title can enable you to get quicker access to funding and you need to be aware of the legal commitment that you are making. Factors that you need to take into account include calculation of the interest rates, late payment penalties and any legal requirements pertaining to the terms and conditions of the loan.
Car title loans provide you with a viable loan option that can help you acquire the money that you need. They are one of the quickest ways to get money if you are a low income earner or have bad credit. When you encounter a financial emergency, it is often difficult to get a loan if factors such as credit scores need verification. The advantage of title loans is that they do not have stringent requirements for borrowers.