Car title loans are increasingly becoming popular, despite their high rates, due to the fact that they provide fast cash without lengthy legal processes and unending verifications. This blog gives you an overview of everything you need to know about car title loans.
What is a car title loan?
Car title loans, also known as ‘pink slip loans’, are those that provide you small amounts of cash for a short period of time, usually for a month, in return for a price (interest). The lender or the loan provider keeps your vehicle title as collateral and if you fail to pay back, the lender may seize your vehicle.
How does it work?
The process of getting a car title loan is simple. You just need to submit an application to the lender along with your photo ID and title of your vehicle to get the loan. The lender will evaluate the price of your vehicle and then gives you the loan accordingly, with an interest rate. Cat title loans are provided for the short term, usually a month. Some lenders may ask for a set of your vehicle keys, in addition to the title.
We at Advantage Finance LLC, help you through every step of the process. Our customer service representatives help you in document preparation, loan application, collateral inspection, loan documents and in ensuring that you get funded by the lender.
What is the cost of taking a car title loan?
In addition to keeping your vehicle title, lenders also charge a monthly fee or annual percentage rate. The monthly fee for a title loan can be as much as 25% of your loan amount which sums up to around 300% of an annual percentage rate.
When and why you should take a car title loan?
Although banks do provide loans at much less interest rate than title loans providers but getting a loan from a bank takes a lot of time, documentation and verifications. And this is the major reason that people go for title loans.
The processing time for title loans is very less, usually a day or two, and it does not require much documentation and legal processes.
Another benefit of a title loan is that anyone, who owns a vehicle, can get it as it does not require credit or background checks. So, if you have a bad credit history and are not likely to receive a loan from a bank, you should go for a title loan to fulfill your need.
What if you fail to pay a title loan?
Since title loans are secured loans, there is a risk of losing your vehicle in case of failure to pay back the borrowed money.
In case you fail to pay the loan, contact a credit counseling service immediately to help you with the available options to save your vehicle.
If you are in immediate need of cash, contact Advantage Finance LLC, a registered credit service organization in Texas, to secure a car title loan as quickly as possible. We are located at four different places in Texas; visit any of our offices between 10 am to 5:30 pm from Monday to Friday and between 10 am to 2 pm on Saturday to process your applications. For further information and queries, call us at 281-715-0506 (Sugar Land), 281-410-5337 (Houston), 281-819-3613 (Pasadena) or 281-968-5651 (Channelview) or fill our contact form and our customer service representative will shortly get in touch with you.