All About Title Loans

We all need a little extra cash from time to time. Whether it be an emergency or an event that we saw coming for a while, there are just times when we’re strapped for cash that our money can’t cover such. That’s when a title loan comes into the picture.

A title loan is a loan that involves borrowing money on a piece of collateral, most typically, a car. The lender gets to take the title of the car, hence the loan name. Other stuff that have titles include boats, trailers, or campers. You can use these items as collateral for a title loan, though a vehicle is used for the most part.

The amount of the loan will rely upon the equity in the car. Simply put, it depends on how much the car is valued following debts currently owed on it. If you still make payments on the car you currently owe, you are still eligible for a title loans. Say, if the car is valued at $10,000 and you owe $5,000, that means there is $5,000 of equity available in the car to borrow against.

Interest rates are something to consider when looking for a lender, among others. There are lenders who charge skyrocketing rate, making it all the harder to repay. You’ll also want to know about the schedule for payment. Just be sure to read the fine print before you sign on the dotted line.

When cash flow is not so good, title loans can come to your rescue. The best thing to do is to take time shopping around when searching for a lender. This way, you are sure to find a reputable title loan company that will work with you honestly and fairly.