How Much Can be Borrowed with Car Title Loans?
A car title loan is a short-term loan against the value of your car. Your vehicle is used as collateral and you have the freedom to do whatever you want with the cash you receive; you can take a vacation, pay off your bills or your debt, or study a course. Unlike regular loans from banks or credit unions, there are no background checks performed on your financial or credit scores. You can even be unemployed, yet still, manage to get a car title loan. The only requirement is that you must be the sole owner of your vehicle.
Additionally, the application form is easy to fill out and the approval process takes from a few hours to about 2 days. Some lenders can even grant you a loan in one hour. To get one, all you have to do is take your automobile and have it inspected and evaluated by the lender, fill out a short form, provide the required documentation, and a working copy of your car keys. The good news is that you can retain your vehicle after getting the loan too. The lender will only place a lien against the title of your car.
A car title loan is a good way to accumulate a large sum of money in a short period of time. You generally have 30 days to repay the loan and if you cannot, you become a defaulter and have two options. You can either choose to have the loan extended or have your car repossessed by the lender. Only 30 states allow car title loans and only 16, have permitted lenders to lend at interest rates that are annualized on a triple-digit basis.
How Much Can I Borrow?
These types of loans are based on the value and worth of your vehicle. Lenders and companies often utilize the Kelley Blue Book in evaluating the worth of your car, while others use certain valuing metrics that are proprietary and are established on the most recent auction prices.
As soon as the lender is successful in determining the value of your automobile, you will receive about 25% to 50% of the stated value. For example, if you have a vehicle whose value is found out to be $5000, you can expect to be offered a loan of $2500. After that, you have to repay this amount plus interest and any other fees. If you cannot, the lender will repossess your vehicle and sell it at an auction. Some lenders also install a GPS tracking device in your car with the ability to shut it down remotely.
Some states limit the maximum amount that can be borrowed at less than $1000. For example, the state of Montana limits the maximum sum that can be borrowed at $300.
It is easy to acquire a car title loan from Advantage Finance in Houston, Texas and in nearby counties. At Advantage Finance, we provide flexible and customized solutions for your automobile financing needs. Call us today at call (281) 410-5337 for the best rates and you will definitely be able to experience the clear “advantage” you receive on the car title loan you acquire.