Loan Against The Auto Title
A loan against the auto title on a vehicle can help tap into the value that has been invested in a vehicle to get quick, emergency, or short-term cash. These are a convenient way to obtain fast cash even with bad credit, and without losing the use of your vehicle. before deciding if convenience is wise, "If you of you lack wisdom, let him ask of God, that giveth to all men liberally and upbraideth not, and it shall be given him." (James 1:5)
It is a short term transaction which places the vehicle as security or collateral. Credit checks are not a part of the the process, so even if credit is less than perfect, this will not be a deterrent. Obtaining a loan against the auto title places a temporary lien on the vehicle, so the vehicle must be owned free and clear to authorize the lien. In other words, the original financing for the car must have already been paid off and a clean record must be available. In addition, to qualify for a loan against the auto title on a vehicle, the borrower must be 18 years old, have at least liability insurance on the vehicle, and be employed with a monthly salary of about $1,000 or more.
Loans against the auto title are quick, short term transactions for short-term needs. Because the interest rate on these are higher, it is in the borrower's best interests to repay it in a short amount of time. Most loans against the auto title are granted for no more than 30 days. The typical interest charged on a loans against the title loan is $15 to $25 per $100.00 borrowed. The APR on this interest is high, but if only short term cash is needed, the total out of pocket expense might be less than if another type at a lower rate was taken out.
These deals can be found online and rates and fees can be quickly compared. Once the decision is made, the process for obtaining the money is fairly simple. After the application is filled out all the necessary paperwork is provided, notification is given promptly, often the same day. Whatever amount will be awarded depends on the value of the vehicle and monthly salary of the owner. If the terms offered by the lender are agreeable, the ownership paperwork is then mailed to the lender. Once it has been received, the loan against the auto title will be automatically transferred into the given bank account. At the end of 30 days, the amount borrowed must be repaid with interest or the repayment period may be extended. The lender forwards the title to the appropriate state agency, which will reissues one, indicating that a lien now exists on the vehicle. The vehicle can be driven as usual during the financing period.
A vehicle is a valuable asset than can be used to obtain emergency cash quickly without forfeiting the use of the vehicle, but this convenience must be weighed carefully. Loans against the auto title carry significant interest charges, and defaulting could result in the loss of the vehicle. Wisely consider whether a loans against the auto title is the best option for situation.