If you have reached this website you’re likely considering getting a car title loan and are curious how car title loans work. This article will give you a brief explanation of how they work, what to look for, and the questions you should ask before getting a car title loan.
Watch this video and continue reading the article below:
A car title loan works by borrowing against the equity in the vehicle you own in your car, pickup truck, suv, motorcycle, or other vehicle. The lender, which is generally a bank or finance company, will loan you money based on the equity.
The process works as follows. You call a car title loan lender up and the company will ask the following questions:
Let’s dig into the process a bit more to understand things a little bit more.
In California, due to state laws set by the California department of business oversight the minimum loan amount you can get a car title loan for is $2,500. Most lenders, to be on the safe side, will make the minimum loan amount $2,510 or $2,600. This doesn’t include fees, or other factors when getting the auto title loan, but if you get a loan above $2,500 the interest rate you have can be essentially unlimited. The interest rate will be determined by the criteria above, and by the competition from other lenders.
Some other common questions you may have:
Generally, lenders will give you 2 to 3 years to pay off your loan. This means that your payments will generally be affordable, however, like any loan–the longer you take to pay it off the more interest you will pay on the loan making the total cost higher. Also, since the lender will be on your title as the first lien holder, if you do not pay your loan the lender can repossess your vehicle.
In most cases lenders will want to work with you to avoid having to repossess your vehicle, but there may be fees associated with these situations. You may also have to pay money to get your car out of repossession if it is repossessed.
Generally, auto title loans are an option for people who have poor credit, and who have a financial emergency –but you need to realize that the amount of interest you pay over time can add up to make the loan very expensive.
If you think you need an auto title loan fill out the preliminary application form on this website and a representative from TNL Car title loans will contact you as soon as possible. Or, call TNL Car title loans at 888-539-4465 TOLL FREE and you can find out within minutes how much you can borrow. We believe in a no pressure hassle free experience. Contact us today!
I am the head of the household and I know that pressure one can get from bills and discrepancies in your credit. I used my car I bought before I got married and it turned out to be such a lifesaver for me. I took out about half of what I was offered and wasn’t pressured any further. Thank you and hopefully my car will be eligible again if need be.