Debunking Common Myths about Auto Title Lending
Many of us are aware about how home equity loans work. However, people have yet to discover more about auto title loans and their benefits. If you live in San Jose, Ca and are looking for an auto title lending facility, then you be happy to know that you can easily get a loan for the value of the equity of your vehicle. This means you can obtain fast and easy cash to take care of expenses such as home improvements or personal expenses.
Here are common myths about auto title lending debunked.
Auto Title Loans Have Gouging Interest Rates
Are you guilty of confusing an auto title loan with a payday loan? Since both involve lending fast and easy cash, it is natural to assume that an auto title loan offers the same excessively high interest rates that payday loans offer to consumers.
The fact is that auto title lending is popular because it does not charge you an exorbitant amount of interest. As these loans are secured by the worth of your vehicle, they do not trap you in a vicious cycle of paying a huge sum in interests on even the smallest of loans. The borrower gets the money he needs and pays it off in an affordable manner.
All Auto Title Loans include Prepayment Penalties
This may be true for some lending facilities. However, a large percentage of these loans do not penalize borrowers if they pay before time. Borrowers can also pay off a bit extra with each installment or pay it all off with a huge sum. Make sure you inquire the lending service about any penalties before you receive the loan if you plan to pay back soon.
You will have to lose your Car
This is another common misconception regarding auto title loans. What you should know is that you are handing over title of your vehicle and not the car itself. No lending service will ask you to give away your car to get money against it. This makes perfect sense since the company that is lending you money wants you to repay the loan without getting involved with the seizing and selling your vehicle.
You Need Good Credit to Qualify
This myth is probably created by other financial lending services that do to not consumers benefit from auto title loans. Unlike other conventional loans where you need to possess a good credit score to qualify, auto title lending allows you to receive fast cash regardless of what your credit history shows.
In many cases, the lenders do not ask any questions about your credit since the loan is secured by the collateral in your car. Individuals are approved for the sum equal to the equity in the vehicle. However, if you become a defaulter your past credit score will not save you and the lending service will seize your vehicle. Thanks to the flexible terms of auto lending loans, this is rare to happen.
Auto Title Loan Companies are Unfair
One of the many myths about auto title lending loans is that they discriminate among consumers. In reality, the only factor that decides the amount of money you can receive involves nothing but the value and condition of your vehicle.
Make sure you do your research before partnering with a reputable company.
You can easily find an auto title loan company that boasts a proud record of helping customers, in the past. A legitimate company in San Jose, Ca will make sure that you get the most flexible terms and receive the best of treatment; whether you are unemployed, disabled or in debt.
Auto Title Loan Lenders choose Potential Defaulters
Since the requirements and the entire process of obtaining an auto title loan are extremely flexible, it is natural to give into this myth. Just because the auto title lenders do not care about your employment status and previous credit history doesn’t meant that they fail to check if you are capable of paying the loan back.
Lenders also check for retirement, insurance money or disability income in case you are not earning at the time of application processing. Borrowers are happy to know that auto title loan services do not want to get involved in the legal costs of selling your vehicle. This establishes a mutual trust between both the parties. However, go through all terms and conditions before signing any agreement and check for penalties before you borrow any money.
It has a Complicated Process
Not many people know that auto title loan is one of the easiest and quickest of ways to receive fast cash. It does not require any lengthy application process or bring dozens of documents to qualify for a loan.
In many cases, you need to fill a simple online application form that does not take up a lot of time. As soon as your application is reviewed, you are contacted by a representative. When the company is done with the evaluation process of your vehicle, you are handed out an amount against you car.
There are no hidden fees or additional charges. This is the reasons why borrowers prefer this loan when they do not want to get into too much paperwork. The procedure saves you valuable time, money and effort that you have to put in when you choose a bank loan. The amount of time a person has to wait varies from one company to another. However, there are instances when people could get their cash in just an hour or a day.
Auto Title Lending Companies are hard to find
Thanks to the internet and online directories, finding a reputable lending service is now possible within minutes. You can also check reviews and ratings of a company before filling up their application form. Make sure you do your homework to get in touch with a legitimate and authentic company.
Get an Auto Title Loan Today!
Don’t let myths about car title loans prevent you from getting a much-needed loan. Contact a title loan company in San Jose, Ca today to learn what terms and conditions are available.