Commercial vehicle title loans are a popular choice among borrowers as an easy and trouble-free way of getting cash. If you are also thinking about taking car title loans, here are 8 facts that loan experts want you to know beforehand:
Fact#1. Clear vehicle title
You can borrow title loans against a vehicle that is registered in your name or you own some stake in the vehicle.
Fact#2. Credit history excused
A bad credit score is a red flag for lending agencies such as banks. However, credit history is not checked while applying for commercial vehicle title loans.
Fact#3. Take only what you can repay
Car title loans are an easy way to collect cash against your vehicle value. Make sure you borrow only that much sum that you can easily return or risk losing your vehicle.
Fact#4. More common than you think
Title loans are more prevalent as it offers a convenient way to borrow money to meet financial needs.
Fact#5. High interest fee
Commercial vehicle title loans have APR as high as 300% for a 30-day loan. You can end up paying back more than you initially borrowed in interest fees.
Fact#6. Easy online process
Car title loans have a simple online application process that allows you to submit and get it approved quickly.
Fact#7. Poorly regulated
Legal loopholes in drafting of title loans make it difficult for the borrower to repay their debts.
Fact#8. Consider other loan options
Explore other loan options such as loan against credit card, payday loans, loan against insurance, etc. before choosing title loans.
Get in touch with 1stcapitaltitleloans experts for more clarity on vehicle title loans.