Financial institutions have a number of services like car title loans and other opportunities to market now and then. The banks, for example, are always finding innovative ways to market their services and loans. One specific type of loan offered by some financial institutions is the car title loan. This type of loan allows the customer to borrow funds from the bank, provided that the car will serve as collateral. How much will be the loan amount depends on the market value of the borrower’s car or vehicle. In case the client is not able to pay the loan, the bank has the right to take possession of the car. What happens to the car? They resell it, in order to cover the loan amount.
Benefits of Car Title Loans
1. This is only a short-term loan, wherein the payment can take within 14 days until a month. On the other hand, the interest rate can be high. Unlike the traditional bank loan, it can provide you with a longer-term loan than payday loans. You can still use your car or vehicle even if it is under collateral. It may take longer for you to pay off your debts, or may take about five years.
You can choose a payment method according to a schedule that works for you. Normal duration for the payment is thirty days, but you can have it extend for another thirty days but with penalties. The bank can accept weekly, bi-weekly or monthly payments. Yet, you can repay it sooner and that can even reduce the interest.
2. Your friends or relatives may offer you some amount to borrow from them. However, loans from the bank can be repaid without being guilty or risking important relationships just because of money matters. There have been cases that relationships in the family turned out badly just because of lending and borrowing money.
3. In case of emergency and you need immediate cash, a title loan can help. A time will come that money is a matter of life and death. Your savings may not be enough to cover in times of financial crisis and fast cash is needed. You must have a clear title of a paid off car, a proof of income, and identification cards to determine if you are eligible to take advantage of the loan. A 21 year old client is considered eligible for this loan.
4. Regardless of your credit history, the process is quick and simple and you can still drive away with your car and borrowed cash. There are companies that allow clients to have car title loans who have filed bankruptcy. It is clear that the criterion for this type of loan is the ownership of the car or vehicle. Some companies can have the cash held to your hands within an hour, while other banks may take around a day or two.
5. Insurance is not required. This is one of the common policies of banks offering auto title loans. As long as you are legal to drive, they do not entail accident insurance of any kind.
6. Since cars have higher value in the market, especially a newly bought car, this type of loan has a higher limit. $1000 is the usual borrowing limit, yet the vehicle will be under evaluation. For example, the bank evaluated that your car has a market value of $12, 000; they can lend around $3000 up to $6000 in guarantee.
7. There are no restrictions on how you are going to spend the money that the bank lent to you. During the application process, they will not ask at any stage.
Borrowing money from the bank or any financial institution is not bad, but it is, when you ran away from your responsibilities in paying your debts. All the terms and conditions must be read carefully and understood by the borrower once the agreement is signed. The loans and other services of the banks are designed with the aim to help their clients’ needs, but one should know how it works in order to avoid unnecessary problems. There are a number of people who have lost their vehicles due to unreasonable borrowing terms.
Benefits of Car Title Loans
1. This is only a short-term loan, wherein the payment can take within 14 days until a month. On the other hand, the interest rate can be high. Unlike the traditional bank loan, it can provide you with a longer-term loan than payday loans. You can still use your car or vehicle even if it is under collateral. It may take longer for you to pay off your debts, or may take about five years.
You can choose a payment method according to a schedule that works for you. Normal duration for the payment is thirty days, but you can have it extend for another thirty days but with penalties. The bank can accept weekly, bi-weekly or monthly payments. Yet, you can repay it sooner and that can even reduce the interest.
2. Your friends or relatives may offer you some amount to borrow from them. However, loans from the bank can be repaid without being guilty or risking important relationships just because of money matters. There have been cases that relationships in the family turned out badly just because of lending and borrowing money.
3. In case of emergency and you need immediate cash, a title loan can help. A time will come that money is a matter of life and death. Your savings may not be enough to cover in times of financial crisis and fast cash is needed. You must have a clear title of a paid off car, a proof of income, and identification cards to determine if you are eligible to take advantage of the loan. A 21 year old client is considered eligible for this loan.
4. Regardless of your credit history, the process is quick and simple and you can still drive away with your car and borrowed cash. There are companies that allow clients to have car title loans who have filed bankruptcy. It is clear that the criterion for this type of loan is the ownership of the car or vehicle. Some companies can have the cash held to your hands within an hour, while other banks may take around a day or two.
5. Insurance is not required. This is one of the common policies of banks offering auto title loans. As long as you are legal to drive, they do not entail accident insurance of any kind.
6. Since cars have higher value in the market, especially a newly bought car, this type of loan has a higher limit. $1000 is the usual borrowing limit, yet the vehicle will be under evaluation. For example, the bank evaluated that your car has a market value of $12, 000; they can lend around $3000 up to $6000 in guarantee.
7. There are no restrictions on how you are going to spend the money that the bank lent to you. During the application process, they will not ask at any stage.
Borrowing money from the bank or any financial institution is not bad, but it is, when you ran away from your responsibilities in paying your debts. All the terms and conditions must be read carefully and understood by the borrower once the agreement is signed. The loans and other services of the banks are designed with the aim to help their clients’ needs, but one should know how it works in order to avoid unnecessary problems. There are a number of people who have lost their vehicles due to unreasonable borrowing terms.