Are in need of a short term loan? If you are then you must have a Title loan. This loan is a short term loan which can be had against your car. First of all, let us know what a Title loan is.
However, title loans are much quicker and easier loans to get, provided you keep certain things in mind which is going to be discussed just after this.
What is a Title Loan?
This a short term loan in which you need to place a lien on your car title to have the loan. As you opt to have title loans in Missouri, you must allow the lender to put a lien on your car title. You also need to give them all documents that pertain to the car title.
As you repay the loan the lien is removed and you again own the car. But if you fail to repay the loan then the lender has the right to sell off the car to realize the unpaid amount.
There are certain considerations that you need to make while having such a loan.
1. The high rate of interest:
Though it is a short term loan the rate of interest is high as compared to other types of loan. The lenders do not do a credit check when they offer you title loans in Missouri. They make certain that the condition of the car of yours is good. If your car is a new one then it becomes easy to get a loan with a lower interest rate. So after buying the car, get the best title loans as fast as possible.
They also ascertain the market value of the car as upon that depends on the amount of loan that they will give you. You can get a loan in quicker ways but that may cost you a higher rate of interest. Generally, when someone’s overall credit history is not so up to the mark, they sanction the loan with higher interest. These type of title loans try to take the most for security reasons.
2. The loan can be had quickly:
This nature of loan can be had quite quickly. It is seen that the loan can be disposed of within an hour of submitting the necessary documents. This is possible as the lenders do not do any type of credit checks or any financial status check to ascertain whether they will offer you the loan. However, there are some other loans which tend to give quicker loan. They are mortgage loan and cash product, buyers.
This is the quickest loan that you can have. Or else, you will have to go through the same process of maintaining your credit history to get the quickest loan. The title loan company is best in regards to solving that part. The only other option you have is to get some loan agent and try keeping a guarantee. The guarantee will be responsible for paying your debts if you can’t.
3. How to find an agent:
It is quite easy to find an agent who will help you to have this nature of the loan. You can search the local stores or the net to find an agent. You just need to provide them with certain personal information and the car details and they will help you to find the lender who will offer you the loan. Some title loan company also provide with agents.
Although, it is not easy to find a good car agent who can give you insights on which car will fit your needs and how much budget you need. There are forums where you can try and get title loans agents and they will tell you exactly what you need. These forums are mainly registered and certified.
4. The amount of loan that you will have:
It is not that the lender will give you any amount of money as loan as you want. There are certain things that they also keep in mind. They find the current market value of the car against which the line is made. This line is then used in determining the amount of loan you will be granted. So keep your car neat and clean, at least presentable at the time of verification.
The amount of loan that they will give you is 30 to 50 percent of the current value of the car. If you fail to repay the amount they will moreover sell the car to get back the nonrefunded money. You can do one thing, you can take a title loan for your new car and sell the old car to get the money to repay it. Well, that is what half of the western inhabitants are doing.
5. Repay in time:
If you avail this nature of loan make sure that you repay it in time. If you don’t then the lender has the right to sell your car which you definitely do not want to happen. So the repayment of the title loan is very important. Some top title loan company give away a special rebate to the customers who pay back in time.
There is one thing which is most important. It is to read the documents carefully. So that by the time by you have availed your best title loans, you will be knowing what awaits you. On the contrary, you can also question the agent if there is anything on the agreement which is not correct or if you are violated of some immunities. However, if you keep a healthy relation with them, then you tend to get more from the best title loans.
Well, the car is everyone’s favorite but if you got to take a title loan for that, you got to take it from the top title loan company. This is the most security you can expect their side. The days when you will be shooting out of the car showroom in your own car are not far.
Also, do not forget to leave a comment in the comment section to let us know whether our article on things to consider before getting title loans was helpful to you or not. We will be bringing you more information on personal finance.
Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights and experiences in this blog. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you. Follow him on Instagram, Twitter & LinkedIn