Is it a good solution to ask for a car title loan? We live in a society where money is a fundamental part to be able to develop in our day to day, it is necessary to eat, to buy clothes, to pay debts and even to give us certain luxuries from time to time; that’s why there are different alternatives to access it and one of them is to use the title of your car to apply for a loan, but you must pay close attention, because this is a double-edged sword.
While it is true that using your car as collateral for a loan can solve your financial debts, it is also important to understand that if you fall behind in the monthly payments that the creditor demands, this can seize your car. That is why I advise you that if you cannot meet the monthly fees offered, it is better not to put your means of transport at risk.
Applying for a car title loan can be very simple, which is why many people turn to it, since they get it faster than and without as many requirements as a financial institution requests. It can even be accessed by retired and senior citizens. The only thing that interests the creditor is that your car is worth more than the loan you request and of course, that you are the owner of the vehicle you offer.
How much money can I get?
The loan is based on the value of your vehicle, you can get from 30 to 50% of the value of your car or motorcycle, but although it seems tempting, it is not recommended that you access all the money they offer you, but to what you really need Remember that the higher the debt, the harder it will be to pay it, and if you do not comply with the terms of the contract, you may end up losing your car.
How long can I get the credit?
The process of obtaining this type of credit is becoming easier and faster. The market for this type of product is constantly advancing and one of the factors that influences it is that they pay almost instantly, after signing the contract and the lender makes the lien on the property title, you will have the money in your hands.
The positive side
One of the best advantages of this type of loan, is that you do not need so much formality to apply for it, by this I mean that you do not need to enter so many requirements, and neither is your credit history very important, the lenders are governed by the value of your car; as long as the value of your car is greater than the requested credit, they will not hesitate to approve it.
As if it were few, another advantage offered by property title loans is that you can continue to use your car without problems, as it acts as a guarantee, but you keep it, so you can use your means of transport while fully complying with the fees.
Another important advantage is their speed, since they give you the loan almost immediately, all you need is to show what you have to offer in case you cannot cancel the fees that the lender demands, and in this case it would be the car; If you meet this requirement, you will leave the place with the money in your hands.
The negative side
As expected, not everything is rosy, as the title loans of car ownership also have great disadvantages and one of them is that the payment fees are very high and can even exceed 100%.
Another disadvantage is that these loans are short term, this means that you cannot take a long time to pay them, and if you fall behind in some payment, the debt will be increasing until you reach the point of seizing the car. So do not take this lightly.