If you own a car, it can bring you a goodly sum in times of financial crisis. I am meaning car selling but only mortgaging it to get a loan. This kind of loan is popularly known as cash for your title or car title pawn. The title of the car is all that the lenders want. It is actually a piece of document that proves you are the legal owner of the vehicle in exchange of which loan is to be procured. Once you make the payback, you will again retain the title.
Who can qualify for such loans?
Everyone irrespective of his/her credit status is eligible for the title loan, provided the borrower owns a car. You may have earned a good point in your credit report or it may have got into a tailspin but this factor hardly matters to the lenders. They only want to know if you have a car to sanction loan against. If you can show the documents of ownership, the lenders start making a good assessment of your car.
The value estimation is done on the basis of your car model and the date on which it was manufactured. Another important criterion goes into value assessment and it is the current market price of your vehicle. When everything is done, a part of the assessed value is granted you as title pawn or loan.
What is the nature of car title pawn?
It is a short-term funding and provides you with a small amount of cash. However, this amount is always much a larger sum than what you can obtain through payday advance. You can secure the title loan even if you have nothing to mortgage because the car title serves this purpose. Faster processing and approval are other great features of title pawn.
What about repayment condition?
A maximum time limit of four weeks is available to make the payback. Another negative point is its attachment with high-interest size. So if repayment is not made within the stipulated time, further roll back will only add to your expenses. The borrowers are, therefore, always suggested to make timely payment so that they can avoid ending up paying through the nose.
Can I use my car during loan term?
Sure. That is really a very plus point of a title loan. Unless and until the car is possessed by the lender in the event of loan default, you can always enjoy a ride in your vehicle. And to avoid the unpleasant incidence of losing your car to the lender, the only solution is timely payback, so take it into consideration.