Need The Details On Getting A Vehicle Title Loan?

by : Rachel Yoshida

Before you go ahead and get a car title loan, you really need to be sure that you know what you are putting at risk. It might seem like a good way to get some fast cash if you have a vehicle that you have a free and clear title to, but you will need to make sure you will be able to do without that vehicle if something were to go wrong and you could not repay the loan.

Many people do find that getting a small loan on against the title of a vehicle is simple enough. If you are quite certain that you will be able to pay back the amount you borrowed plus whatever interest there will be, it should not be a problem. As we all know intentions usually always start out being the best, but many times they will not end up that way.

When you take your vehicle title to a loan establishment, they will require that there is absolutely no lean against it of any kind. You will also be required to have full coverage insurance. This means that even though they hold the title, you will be able to continue to drive the car as long as the vehicle will be fully covered in the event of an accident. Some loan establishments may loan you money against the car title and just keep the car until the loan is repaid if you do not have it insured. This may be a rare establishment though.

The amount that you can get for your car title will depend on what title loan business you go to. Some may loan you more money than another place, some may only have a certain set amount that they loan anyone no matter the value of the car. It is wise to shop around for the best deal if you decide to use your vehicle title for this purpose.

Some businesses may also have a limited number of times that you can renew the loan if you fail to pay it off on time. This will mean paying the initial amount of interest to set the payment up for an additional period of time. It works in much the same way as a cash advance or payday loan except you are using your vehicle for collateral.

If you fail to meet your loan obligation in the allotted amount of time you have paid for, the title loan company has a perfectly legal right to confiscate your vehicle. This is why when you take out a tile loan, you need to absolutely sure you can pay back the loan within the limits of the loan agreement or you just mind end up walking for a loan of only a few hundred dollars.