Auto title loans, also known as car title loans, is a type of loan in which a borrower authorizes the lender to use their motor vehicle as a form of collateral or security. The lender is allowed to put a temporary lien on the title of the car, in which the borrower has put up in order to receive their monetary need. A payday loan, however, is an unsecured short-term loan and is usually related to the salary of the borrower. The customer or the borrower must have the payroll or current employment records to qualify for the loan.
An additional benefit
It usually takes a week to treat an auto title loan. The borrower must put his / her car title as collateral contingent on the basis that they intend to pay off the loan in a short period of time. If the borrower decides to stop satisfying their loan, the lender then reserves the right to take the vehicle. The good part of a car loan is that you can get the money in your hands quickly. The process is simple as it involves only the resale value of your vehicle and the amount you want to borrow, devoid of unnecessary credit checks that are required with many other loans including pay day loans. Anyone with a working car, lien free vehicle that is registered under their own name, is eligible for a car loan, with no credit or background check involved. Once the resale value of your car is analyzed in regards to the amount you want in a loan, and you go through the approval process, the money is yours.
Loans come with advantages, but at the same time, these loans become expensive and may create problems in terms of long term payment structures. The main premise of a title loan is that it is intended to serve an emergency short term monetary need. Title loans in the state of Virginia is structured in a maximum of 12-month terms. Title loan agencies are required to educate their customers in regards to the structure and laws behind title loans in the state of Virginia. Part of the reasons as to why title loans have a bad rap is due to the fact that companies do not educate their customers about the structure and terms of the loan. It is of great importance that the customer understands that a title loan is intended to satisfy an emergency short term need, so that they are not oblivious to the problems it may pose when the loan is stretched out over the course of multiple months, compounding the total interest owed and putting the customer in a jam when the main purpose was to help the customer get out of one. The cost of a traditional loan repayment is significantly higher compared to auto title loans and is generally processed over a much longer period of time. General loans have interest rates below 25 percent, but are structured so that they take years to pay off. If you cannot pay the amount in time, then the debt can quickly rack up, leaving you with you bad credit.
Why our title loan is better
Competition in the title loan industry is on the rise, which may help lower interest rates a company can place on a particular loan. Interest rates on auto loans aren’t easy to understand and title loan agents are responsible for educating the customer on the intricacies and complexities of a title loan. It is an agent’s responsibility to make sure that the customer understands that a title loan is a short-term high interest loan as well as encourage the customer to pay the loan off as quickly as possible so that they don’t put themselves in a hole. At Fast Cash Title Loans, we make sure that each and every customer that walks through our doors understands the structure, terms and repercussions of not satisfying a loan as soon as they possibly can. We stress the importance of only taking what they need and feel comfortable paying back and not necessarily what they may qualify for. We strive to ensure that our customers leave our location both satisfied and aware of the situation they are in. Fast Cash Title Loans is the Allstate of title loan companies, “you’re in good hands.”