Car title loans, being no credit title loans, have come as a relief to the borrowers who have had a problem getting a loan from a traditional lender like banks. It also helps the borrower who has the cash but needs little time to gather it together. Car title loans are trustworthy because The Federal Trade Commission, the nation’s consumer protection agency, advises you to consider the option of these no credit title loans, i.e., car title loans.
All that you need to know about a car title loan before applying for one has been mentioned below.
- It is a clear title loan which is short-term and highly rated and uses the clear title on your vehicle as collateral
- These loans typically are for 15 to 30 days and have a triple-digit annual percentage rate (APR)
- These loans are also known as a pink-slip loan, title pledge, or title pawn loans
- These are no credit title loans, meaning you do not have to mortgage any of your property
- Car title loans often offer an amount that is 25 percent to 50 percent of the car’s total value
- On an average, these loans range from $100 to $5,500 but can be extended to $10,000 from some lenders
- There are three options offered to the borrower for repayment of the loan: in person, through an online system or through a predetermined automated repayment system. In the third option, the lender withdraws the amount directly from your account after you have agreed to it
- In case you are unable to pay the amount, you lose your transportation as well as the money your car was worth. To ensure paying off the loan, some of the lenders put up GPS to track your location and hunt you down
- You’ll require presenting a photo Id proof, your car, clear title and a legitimate proof supporting that you will repay the borrowed amount
Car title loans are helpful only if you assure that you would repay them on time.