Written by Super User on 05 August 2013. Posted in FAQ
A title loan is a simple loan that uses your car (or other titled property) as collateral. For people with limited credit history, poor credit or simply in need of a quick loan without all the hassles of dealing with a big bank, title loans are an excellent funding source.
Title loans can be used to pay for:
- Anything else you might need extra cash for
Learn More About Title Loans
Title loans are much like other loans you may get from a bank, credit card company or individual. The main item of difference is that a title loan specifically states what collateral is used to secure the loan. In most cases, when people refer to a title loan they are talking about a car title being used as the collateral. At Affordable Title Loans in Salt Lake City, Utah, almost any titled property can be used for a loan.
Title loans are named thus because of the lenders demanding the certificate of ownership of the vehicle, known as the title. The borrowers are thus not restricted from making use of the vehicle during the period of the loan, because only title is held by the lender. Titled property is essential any property which is associated or named by a legal document which shows ownership and is recognized by a government agency.
loans may have higher interest rates than a credit card or other loans, they are intended primarily as a short term loan to be used for quick cash in emergency situations, to catch up on bills or to help the borrower through an unexpected financial issue. Since the loans are for shorter periods, unlike a 30 year mortgage loan, the amount paid in interest should be affordable.
Title loans are great for people with limited credit history or poor credit. Since the loan is being secured with a title about the only major requirement is that the title is clear of any issues and the vehicle is fully owned by the person taking the loan. Borrowers must be aware that in the event that a title loan isn't repaid in full, the car or titled property used to secure the loan may be permanently lost since it is required to cover the unpaid loan.
The process of obtaining assistance through title loans is no different from the other loans. Borrowers have to be watchful for lenders who charge exorbitantly high rates of interest. One must take title loans only from the licensed lenders who are authorised to offer these loans. They may even undertake checks to ensure that these lenders have the necessary credentials to offer title loans.
At affordable title loans, we make every effort to explain the details and repayment considerations for the loans we offer. Please call us or contact us if you have any questions.