What is a Title Loan?
A title loan is a loan of money secured by a certificate of title to a motor vehicle. The title loan lender keeps the certificate in case the loan is not paid.
A title loan is a way to borrow money on your automobile title. When you get a title loan you receive money on your automobile. The process is fast and easy. If you have a clear title in your name, you are eligible for a title loan.
If you own your car, title loans can be a great short-term loan solution to your borrowing needs. Borrowers should be aware that Title loans, like any other type of short-term loan, attract a high interest rate.
Once a decision has been made as to how much you may borrow, the title loan lender will hold the vehicle title document while you continue to drive the car. After the principal and the interest are paid your title document will be returned.
The title loan lender must give each borrower, at the time the loan is made, a written title loan agreement.
Borrowers should read the contract very carefully and make sure they understand what it means, before they sign it.
If you fail to pay the loan, the title loan lender may repossess your vehicle. However, the title loan lender must first give you the opportunity to make the vehicle available at a date, time, and place of mutual convenience. You have the right to remove your belongings from the vehicle at no additional cost.
If your vehicle is sold, you are entitled to any proceeds of the sale in excess of the amount you owe and the lender's reasonable expenses for repossession and sale.
All title loan lenders must be licensed in order to engage in the title loan lending business. Each title loan lender undergoes a criminal background check to ensure that the lender is qualified to issue a title loan.
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About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
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