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How to apply for an auto title loan
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Posted On :
Nov-01-2011
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Article Word Count :
506
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Car title loans are subprime loans to borrowers with poor credit, their auto equity as collateral, which lend money to consumers based on the value of their vehicle.
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If you apply for a car title loan, you must prove that you hold the title of your vehicle. It is important that your vehicle has a clear title and that your car loan is paid off or nearly paid off. The debt is secured by the car title or pink slip, and the vehicle can be if you default on the loans taken back into possession.
Some lenders may also require proof of income does not disqualify and / or conduct a credit check or bad credit you from getting approved. Car title loans are usually considered subprime because they meet to be primarily for people with bad credit and / or low income, and they usually require higher interest rates than conventional bank loans.
How much you can borrow with a car title loan?
The amount you can borrow on the value of your vehicle, which is based off on its wholesale price. Before you approach a lender, you will need to assess the value of your car. The Kelley Blue Book (KBB) is a popular source for a used car to determine the value. This online research tool you can for your car, model and year and are looking to add the appropriate options to calculate the vehicle.
Estimate your vehicle's worth will help ensure that the maximum amount possible on your car equity loans. If you use the KBB valuation as a base, you can accurately assess the estimated price for your used car.
The trade-in value (sometimes equal to the wholesaleValue of the vehicle) will be the most rewarding, if you are looking for a title loan. Lenders will be determined in this calculation factor to borrow as much from this value, they are willing to, in cash. Most lenders will offer 25-50 percent of the value of the vehicle. This is because the lender has to ensure that they cover the cost of the loan, they should have to re-take possession of and sell the vehicle.
Different states have different laws about how the lender can structure their car title loans. In California, the law requires interest rate caps on small loans up to $ 2,500. However, it is possible to borrow money from more than $ 2,500, if the collateral value sufficient vehicle. In these situations, lenders usually will charge higher interest rates.
If you do not depend on your credit rating to get a low-interest loan, a higher limit auto equity loan to get cash in the times of a financial emergency. An auto pawn loan is a good option if you need cash urgently and can offer to your car as collateral.
Make sure you find a reputable lender, flexible payment terms and low interest offers. Most lenders you can apply for the loan through a secure online title loan application or call and let you know within minutes if you have already been approved. You could have the money you need in your hand within hours.
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Article Source :
http://www.articleseen.com/Article_How to apply for an auto title loan_98661.aspx
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Author Resource :
You may also be interested in online title loans !
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Keywords :
payment, loan ,
Category :
Finance
:
Loans
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