LOS ANGELES, May 10, 2021 / PRNewswire / – Borrowers who own vehicles and need cash quickly and easily can take advantage of something called an auto title loan (also known as a car title loan or just a title loan). Essentially, these types of loans allow the borrower to use their car as collateral for a loan. This article will explain how securities lending work in more detail and how much a borrower can receive from one.
How Do Car Title Loans Work?
Car title loans use the borrower’s car as collateral by giving the lender title to hold for the life of the loan. These loans are generally short term loan where borrowers can find securities lenders both in person and online. Title loans offer quick applications and do not require any credit. In addition, borrowers can often receive their funds in less than 24 hours.
The borrower can continue to drive the car after receiving the funds while the loan is in progress. A free and clear title is often required by car title loan lenders.
How Much Can a Borrower Get From a Car Title Loan?
According to Federal Trade Commission, auto title lenders typically offer 25% to 50% of the value of the borrower’s vehicle as a securities loan. They state that most securities lending is between $ 100 and $ 5,500 on average. However, some securities lenders may offer $ 10,000 or more. The more valuable the borrower’s car, the more he can receive.
Disadvantages of an auto title loan
Securities lending often comes with a high APR and may include additional fees. In addition, if the borrower is unable to repay the entire loan balance on time, the lender risks repossessing their car.
Leverage cars for money
When a borrower runs out of cash, they can leverage their assets to get additional financing. For anyone who owns their vehicle, a car title loan is one of the fastest and easiest ways to get more money. Application and financing times are short and no credit checks are required, making them useful for borrowers with poor credit. Not to mention that the borrower can continue to drive his vehicle. As long as borrowers repay the security loan on time, this can be a good tool in overcoming a financial crisis.
Note: The information provided in this article is provided for informational purposes only. Consult your financial advisor about your financial situation.
SOURCE Advancing America