Title Loans


Title Loans

Title Loans

Title loans are considered to be a secured short term loan with a high cost that is held by a vehicle that the borrower owns outright. Title loans are often used by borrowers who have no other means of obtaining money through the standard lending system. Title loans have a high interest rate which is usually around 300 percent and the loan terms are only 30 days. Title loans do not require a credit check and the application process is done very quickly.


There can be some pros and cons when it comes to considering title loans. The most common reason that people will pursue a title loan is that you will be able to obtain the cash fairly quickly because title loan lenders don’t require extensive paperwork and they will not check your credit history. If you default on the loan, then the title loan lender can take your vehicle and sell it to pay back the loan. There are about two major disadvantages of title loans that you should consider before you decide to take out a title loan on your vehicle. Title loans have a much higher interest rate. You will want to make sure that you can pay the title loan back as soon as possible, usually within a 30 day period, so you will not be charged the higher interest rate. Title loans can decrease the value of your vehicle. You will want to know the value of your car before obtaining a title loan because some title loan lenders will lend you a lesser amount of your car’s value than the actual value of your car. If you need more information about title loans, contact a title loan lender in your area to find out what is best for you.