A car title loan is really just one of the many options that you have in case you are pressed for cash and have no one to borrow from. But what is it anyway? Read below to know.
As you can see from the name, a car title loan uses the title to your car as the collateral to your debt. Unlike other sources of loans like payday loans or cash loans, the amount you get is significantly larger, but this really depends on how much your car is worth based on its make and model as well as other factors like its overall condition.
If you want to know how much money you can actually get, make sure to visit the websites of several lenders and contact them. Or you could also apply for a loan right away and fill out the information needed. But how does it all work?
Once you are done with the loan application, it will be approved in principle within minutes. The lender’s representative will then call you to work out the details. You will be then required to send your car’s title before the money is sent to your bank account. If the process sounds very easy, it is. And this is the reason why so many people who are in need of cash use car title loans.
As we said earlier, the loan amount is significantly higher than a non-collateral cash loan, where most lenders are only willing to loan up to $1,000. With car title loans, the amount is significantly higher, and the process is just as quick. But now you might be wondering about the interest rate and repayment terms. The FTC points out that it is a very expensive form of credit and that if you do the math, the APR goes into the triple digit category. This is because car title loans are short-term loans that you need to pay the monthly minimum amount.
If triple digits are not expensive, we do not know what is. However, for most people, they really do not have any other choice but to risk ownership to their car. Besides, unlike cash loans or payday loans, you can get up to $50,000 for a car title loan with us, although the minimum loan starts at $2,600.
If you search for it online, you will see that there are many car title lenders out there. While some of them are national, many of them are state-based and only serve customers in a certain state. Remember if the APR is more than 100%, you should consider getting a car title loan from us because at Windsor Quick Funding – you will NEVER pay triple digit interest. That is our guarantee!