Do you own a car and have recently found yourself in a tight spot in terms of finances? If so, then you should still consider yourself fortunate because you can place a lien on a vehicle you own. There are many lending agencies out there offering loans with cars, trucks, ATV, and motorcycles as collateral.
Read on to learn more about how you can use your car title in case of a financial problem.
The Typical Process
Your credit history is typically not considered when applying for a car title loan. Apart from the vehicle title, you have to submit official documents, including valid identification cards, proof or residence, proof of income, and in some cases, vehicle insurance. The amount you need can be yours within a few hours if you willingly surrender the title of the vehicle to the lender. For borrowers applying for short-term title loan from lenders like UtahMoneycenter.com, creditors usually associate the vehicle title loan with a high interest rate.
You get the vehicle’s title back as soon as you pay the full amount borrowed plus interest. Failure to repay results in loss of the car or truck because the lender has the right to repossess it. Make sure you understand this part of the deal.
Your Vehicle as Collateral
Your car has a specific value and the lender will name this amount after conducting careful inspection of the vehicle. While the title is theirs, you get the money you need and retain use of the vehicle. You have to pay back the loan according to the schedule specified on the contract. It is important that you are completely aware of the time you can get the title back. Some companies may impose a penalty when it comes to this.
These days, you may find yourself in sudden need for fast cash. If there is an emergency in the family and a huge amount of money is required immediately, your vehicle title can serve as collateral. Know your rights and responsibilities before signing on the dotted line and handing over the title to the lender.