The use of auto title loan began in the 1990s. The loan helped several people during a financial crisis, and especially when money was needed immediately. An auto title loan is normally a short-term loan normally lasting no more than 30 days. The normal business practice of issuing an auto loan may allow a borrower to obtain loan up to 50 percent of the value of the vehicle. Vehicle value is normally determined by the Blue Book value. The auto title loan became useful by individuals whose credit was not quite good enough to obtain a traditional bank loan.
Benefits of Using Auto Title loan
There are many benefits to taking advantage of regarding an auto title loan and a few are:
The convenience of obtaining the loan
Not a credit-based loan
Can be cheaper than cash advances
Keep the use of a vehicle
Auto title loan approval can be completed fast. It can be as simple as completing the paperwork and you could be granted approval in a few minutes. Most auto title loans greenville sc are useful because the loans do not require credit checks. The no credit check aspect of the auto title loan tends to be great for anyone with poor credit. The vehicle is used as collateral. The lender will examine the vehicle to determine the monetary value of the vehicle. The interest rates associated with an auto title loan may be a lot less than interest rates that may be paid on a cash advance loan. The use of collateral helps decrease interest rates for auto title loans. As a person makes a payment on the auto title loan, they are still able to use the vehicle. In some cases, with the use of a traditional loan, collateral may be held by the bank until the loan is repaid.
Finding the Correct Auto Title Loan
Interest rates will vary with each lender, and it may be important to find a lender who willing to offer reasonable interest rates. You should always be aware of the terms of the loan and the repayment schedule. You want to work with lenders who will provide a good repayment schedule. If you have trouble repaying the loan, it could translate to the loss of the vehicle. If a car is repossessed, and the sale is not enough to cover what is owed by the borrower, then the borrower is still responsible for the unpaid balance. The rules that regulate auto title loans will vary from each state, and you should be aware of them. In some states, auto title loans are illegal.
Auto Title Lenders Important Numbers to Know
Auto title loan generates nearly $3 billion in interest rates annually. There are over 7,500 lenders in 21 different states who will be willing to lend money using a vehicle as collateral. The competition is fierce. With any industry, you should beware of the lenders who have a reputation of taking advantage of the customer. The auto title loan can be quite helpful for anyone who owns their vehicle and can afford to repay the loan within the time stipulated in the loan agreement.