Car title loans are when a person uses the title of their car as collateral for a loan equal to or less than that of the value of the car. These types of loans work when the title owner gives the lender the title to their car or whatever they are getting the loan for, like a truck or motorcycle. The lender also charges a fee for using the money as well as having the borrower repay the money within a certain amount of time, usually thirty days after the contract is signed.
Many vehicles are repossessed by lenders for people defaulting on their payments, and this is well within their right to do since they have the title to the car in the first place. Loans are very expensive sometimes and can cause the owner a lot of problems if they are not kept up with.
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What are some other ways to borrow money?
There are obviously other less painful ways to go about collecting enough money for a down payment for something like :
– Credit unions or other types of banks
– Close friends
– Opening up a credit card
Many lenders simply just want their money so they are often very flexible about meeting payment deadlines as well as more than likely working with you to ensure a speedy payment. More about this topic at www.consumer.gov