Finding Similarities Between and Life
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Facts About Car Title Loans
At times, you may be faced with a financial crisis. One of the ways you can acquire an emergency financial loan when you have a car is a car title loan. The amounts given on credit and is payable within one to four years is the car title loan. In exchange for the cash, you will have to give your car title to the lender. There are several facts you should know about a car title loan.
First, you should know that you need to do proper documentation before getting the car title loan. The main reason why you need to do proper documentation is because your car is precious to you. The lender will also be sure that the person they are lending to is genuine through proper documentation. Some of the documents you should produce during application for a car title loan include; vehicle title, your application, your car photos and a valid state-issued identification document.
Another thing you need when applying for a car title loan is a car inspection and evaluation. The value, model, and condition of your car will determine the car credit loan amount to can get. You will then receive your car credit loan after the approval of your documents.
Further, you need to know that good credit is essential when applying for a car title loan. A lender might need to go through your employment checks, credit checks, and your background to ensure that you will be in a position to repay the loan. As opposed to other bank loans, you can get a car title loan without undergoing a credit check provided you have an income source.
Your car title loan amount is determinant on the value of your car. Most lenders will give you 50% to 60% of the value of your car as the car title loan. Some of the determinants of the car title loans you get include whether your car title is clean, the model or make of your car odometer reading as well as whether there is any lien to your car. The lender usually holds your car title until you are in a position to repay your loan and the interest. The car title repayment plans are different depending on your lender and is usually based on principal, loan duration and interest.
Once you apply for a car title loan, you will get the money within a short period of time. The application for a car title loan requires less paperwork and less credit check which is why it is referred to as emergency loan.
Your car will be put on sale by your lender if you are not in a position to repay your car title loan within the agreed duration.