Are you out of saving funds? Facing a hard time paying debts? Life of course is uncertain. You may face ups and downs in it. You may have to make urgent payments like medical bills, utility bills, legal fees, repairs, mortgage payments, and more. Trying to manage all these bills might be absolutely impossible.
You might require money faster, but what if your credit score turns out to be poor? You can’t access any lines of credit or the customary short-term loans. You don’t need to dread; a car title loan can come in handy at such panicky situations. It’s the easiest and a faster way to gets your hands on hard cash. Title loans Glendale can support your financial needs and boost your cash flow.
What exactly is a car title loan?
You use your car’s title as collateral for acquiring a loan. All you need to have is a car and your credit score doesn’t matter here. After availing a loan, in the interim you can even keep driving your car. In case if you are unable to make the payments, fall behind to pay back the loan, or its rate of interest, the lender has the right to repossess your car.
There are obvious reasons for the high popularity of title loans. They are quick, convenient, and don’t require any credit checks. Your car might be on a loan under an entirely different company. You can still access a car title loan, as long as the equity in your car is larger than the payable loan. But holding other liens might affect your car’s collateral value.
Each borrower has unique situations and many lending companies readily understand them. If your car is on a different lien and you still require a title loan, you can discuss your requirements with them. This will help them to eventually work out a lending option that suits your urgent financial requirement.
Different lenders have different ROI
Car title loans are intended for a very short-term. Their interest rate therefore varies among lenders. Generally due to their shorter time period, the rate of interest is quite high. Their loan duration might vary from a month to almost a year, on an average they give out month duration to repay the loan. Their interest rate for a year can be as high as 20% or above.
Incase if you borrow a car title loan for 15% interest rate for a month, then the interest will sum up to 180% in a year. This might sound pretty high, but considering the convenience and the amount that you get, this interest can be sorted as worth paying for. You can even negotiate with your lenders, and this might help you acquire a reasonable rate of interest for your title loan Glendale.
Your car as collateral
Every car will have different value based on the years of use, damage to the car, brand and make, and more. The lender you choose will definitely take these factors into consideration to determine the value of your car. This value will in turn determine the loan amount you are eligible to acquire. Simply put, your car value will determine the loan amount.
Usually, title loans allow you to borrow for about 50% worth of your car. This is because they need to recover in case you are unable to repay your loan. During such occurrences, they only have to cease your car in order to equate the value of the loan.
Apply for a title loan now
You can get in touch with lenders like title loan Glendale and quote your interest in taking a title loan on your car. Each lender will have their own terms and policies; depending on these terms and policies, they make a review of your car, or ask you to provide your own review from an authorized car dealer.
They will make an inspection of your car, and will offer a loan based on it. Once you are done with the inspection and agreed on their terms and conditions, they will issue the money in the form of hard cash, a cheque, or credit the money to your savings account.
You might be asked to make a prepayment settlement, in case if you pay your loan earlier than the stipulated timeline. Other than that a car title loan is apt for you in times of emergency. Be optimistic and don’t hesitate to get a title loan when required. Cars can indeed earn you a few dollars!