We sometimes get into financial difficulties and yes, even the best of us. And to sort these issues, friends and family are occasionally great options.
Aside from them, getting a loan with your car as collateral is another possible way of getting cash real quick and easy.
Qualifying for a car title loan is pretty much easy, you get a loan based on the equity in your car. A car title loan gives vehicle owners access to a few thousand of dollars in a fast loan process. There is minimal credit requirement to get this loan and prominent among these requirements is that you have qualifying equity in your car. In simple terms, when you sign a loan agreement with a lending institution, you are clearly saying your lender can take full possession of your vehicle if you default on payment.
Title loans are delivered just within minutes to a few days of application and approval so it’s a viable option if you are seeking a quick loan.
Car title loans are typically short-term loans and many are due 24 to 36 months. Hence, repaying the loan and getting your title back should be a major concern immediately you get the loan. A good number of borrowers fail to understand that due dates are often in a few days, weeks or months so there are additional interest and late fees being applied to the title loan account.(with additional charges most times) and when borrowers default on repayment, title lenders repossess the car.
To avoid this, ensure you only take a car title loan if you are certain of paying back the loan or make your monthly payments on time. Sadly, some people take auto title loans without making repayment plans and some of loan takers have lost ownership of their vehicles in the process.
But if you stick to your end of the agreement, you could save yourself a lot of extra interest and fees by just paying on time and even more important the embarrassing repossession of your vehicle by your lender.
So how do you get your title back? Remember, you handed all ownership rights to your lender immediately you took the car title loan, therefore before you can get your vehicle back, you must repay the loan in full, this includes the initial loan amount, interests and late charges if repayment period was extended.
They may differ with states but generally, reclaiming a car title follows virtually the same procedure.
An auto title loan is filed right under secured creditors. Once you complete the payment plan, the lien holder notifies your state’s Department of Motor Vehicles (DMV). This could be done electronically or via submission of paperwork as proof of repayment.
Usually, there may be delays as checks have to be cleared and paperwork’s prepared to duly notify the state. Your title is mailed to you once the DMV is notified. It may work differently in some states as you might need to go in person to get back your title at the vehicle agency.