I Have Two Cars; Can I Get A Car Title Loan Based On Both?
Are funds running low and you're in need of instant cash? Then you may want to look at applying for a car title loan. We live in a world where poor credit history or a low income makes it nearly impossible to get a loan. With a car title loan, none of that matters!
Unfortunately, it's not without its barriers. This is why Rapid Auto Loans would like to share the ins and outs of a car title loan.
What Is a Car Title Loan?
Before applying for a car title loan, it's important that you understand everything that it entails.
A car title loan is a short-term, high-interest loan, where your car is used as collateral. This means that you're using your car to secure the loan payment. If you
should you miss a payment, you run the risk of having your car be repossessed. If this happens, it will be sold so that the company can recover its loan to you.
Applying for a car title loan is relatively easier than applying for a loan anywhere else. All you need is to own your car free and clear. This type of loan is considered an example of subprime lending because its main target audience is members with a poor credit score or history. With nowhere else to turn, a vehicle title loan offers them an opportunity to get financing.
The problem is that a car title loan carries a higher risk than other loans, thus it has a higher interest rate. So, how does it twork?
How Does a Car Title Work?
Simply put, a car title loan is an easy way for someone to borrow money against their car. When applying, the borrower would need to present their driver's license as well as proof of ownership of the car.
The Numbers
The lender will then determine the loan amount based on the value and condition of the car. Typically, this would be between 25% to 50% of the car's total value. These loans are usually 30-day loans, but many companies will allow the time to be extended. During this time, you can use your car as normal, but the company will keep the title as security for payment.
Repayment
If after 30 days you are unable to make payment, your car will be repossessed and sold. It's a high-risk loan, which is why most companies add a hefty fee of 25% of the loan amount onto your payment.
One Car = One Title Loan
Do you already have a car title loan but are wanting to take out another? Unfortunately, having two cars in your name doesn't mean that you're able to take out two loans.
However, if the second car title is in your spouse's name, then each of you would qualify for a separate title loan.
Ready To Apply for A Florida Car Title Loan?
A car title loan is an easy way to get your hands on some extra cash, but it isn't without its risks. Knowing exactly who you're dealing with will save you headaches and unnecessary stress.
At Rapid Auto Loans, we understand that sometimes things are tight and that some extra cash can go a long way. This is why we help people like you by giving them an opportunity where other lenders will not. We're people, people and our only goal is to help.
If you're interested in a vehicle title loan, call Rapid Auto Loans today at 954-960-7097 for more information or to start the title loan process!
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