Title loans are basically short-term loans which are becoming quite popular nowadays. A car title loan is a loan which is borrowed against the value of an automobile. These types of loans are generally for people who are unable to opt for other forms of finance due to a number of reasons such as a bad credit score.
In a car title loan, the vehicle is used as collateral and the amount borrowed is usually 25% to 50% the value of the car. The borrower brings his or her car to the lender; the lender evaluates it, maintains a title and keeps a lien on it, and lends cash in exchange. The amount borrowed is returned within a period of 30 days plus interest and any additional fees. There are many benefits of car title loans:
- The application process is easy and doesn’t require much detailed information to be filled out.
- The approval process is faster than traditional loans. Generally, title loans are acquired within a period of 2 days but some companies and lenders can approve a loan request within hours.
- Car title loans are given to people who own cars. Hence, the good thing is that a person can retain control of their vehicle even after securing the loan. Only the car title is handed over to the lender along with a set of spare keys.
- There is no background, financial, or credit score checks performed by the lender. Additionally, a car title loan can also be taken by an unemployed person.
- These loans are easily manageable and can be paid in a convenient manner, unlike traditional loans. Furthermore, the interest rates are lower.
The Documentation Required
Documentation is a vital component in the loan acquiring process and is so in the case of a car title loan as well. The basic requirement is that the borrower must be an owner of the vehicle; no liens are placed against only the title. The borrower must bring a set of the following documents to the lender:
- The original document pertaining to the vehicle’s title which shows sole ownership. The back and front must be submitted as well.
- An identification issued by the government which should match the name on the title. An example is a driver’s license.
- The vehicle’s registration document which should match the name on the title.
- Proof of residence or a utility bill. The name on this document should also match the name on the title.
- A document bearing proof of the vehicle’s insurance.
- A proof that the individual can repay the loan. An example is a recent paystub.
- Two references are needed with their names, addresses, and phone numbers.
- A single set of the vehicle keys. These keys should be a copy and should be in an operating condition.
A few lenders and companies have the requirement to fit a GPS tracking device, in case the borrower cannot repay the loan. The lender can disable the automobile remotely and has the full right to repossess the vehicle.
Secure a car title loan from Advantage Finance in Houston, Texas and nearby counties. At Advantage Finance, we provide flexible and customized solutions for your automobile financing needs. Call us today at call (281) 410-5337 for the best rates and you will definitely be able to experience the clear “advantage” you receive on the car title loan you acquire.