Title Loans: How does it work to help your finances?

A title loan is one of the most discussed types of collateral loan at finance companies and US homes. People have no idea how to feel about this loan since they have very little idea about it. Most of us have a vague idea about the concept of a Title Loan. However, almost none of us know how a title loan works.

Today, we are here to elaborate on the workings of a title loan in any US state.

What is a title loan?

The most common title loan is when you apply for a loan at your bank or credit union using your car or motorcycle as collateral. This is a type of secured loan. So, in case you fail to make a payment, your creditor gets the complete right to claim your pledged vehicle.

Why are title loans famous?

You can get as little as $100 against your motorcycle, or as much as 70% of the market value of your Honda. The loan amount depends on the vehicle you are placing as collateral, the condition of the same, and you can get the loan amount on the same day as loan approval.

How do title loans usually work?

Title loans are known for being extremely fast. The procedure to get approval is quite simple. At https://bayareatitleloans.com/ you can submit a loan application within 15 minutes.

1. Applying online –
   Getting a car title loan is a breeze since you are essentially applying for the money you already have. You can fill out an online form stating your name and requirement details. Make sure you fill in all the necessary details since the company will decide the amount of your loan depending on the info you provide.
2. Minimal paperwork –
   Paperwork is a headache for most loan applications and the Bay Area Title Loans completely agree. You will be given all the documentation from the company. You will need to provide a copy of your driver’s license and a proof of your vehicle ownership. Nothing overly complicated!
3. Get your cash –
   It is as easy as that! Once all your details are verified, you can get the cash on the same day as the approval. It takes this company less than an hour to sanction the loan if you have your paperwork in place. However, you will need to go to one of their local offices for the verification process, and one of the loan execs will take care of the rest.

Why do people fear title loans?–

Although title loans are quick and effective in solving sudden financial woes, there are a few myths that surround the process.

Here are the biggest myths that we keep hearing about all title loans from various self-proclaimed financial experts –

1. The companies reserve complete right to repossess the car or motorcycle you have placed as collateral if you do not follow the terms of repayment.
2. The most common myth that puts most potential borrowers off is the high APR. There are many unscrupulous companies that charge APRs as high as 300% for the first year. However, this is not the norm.
3. Sometimes, lenders will ask for a second copy of your car keys or ask for a roadside service plan.
4. Just a lien-free car title is never enough for a car title loan; you will need to give personal information that is not safe with the loan companies.

A reputable company will look forward to making your financial situation easier and will not put you on a financial treadmill.

The truth about car title loans at Bay Area Title Loans –

At Bay Area Title Loans, a car title loan is a transparent process that may take as less as 1 hour to complete. It starts online and ends at one of the land-based offices in your area. This is one of the fastest ways to borrow money against your current vehicle.

Here are a few ways car title loans work at a reputable company –

1. Your personal details are safe with the company. There is no effect on the installments that you may be still paying off for your current vehicle.
2. You can use your car while you are paying off your loan. Even if you misplace your vehicle during the term, you can get the benefits as long as you have the ownership.
3. The loan amount is decided according to the condition of your vehicle. Although most companies offer a minimum value of $1000, Bay Area Title Loans can offer you a minimum of $2,600 within 24 hours of approval.
4. There is no penalty if you want to pay off your loan earlier than payment term. The typical payment term is usually 24 months.
5. Most companies that have been around for a few years do not check your credit score for approving a car title loan. It is a secured loan, and you should be able to enjoy the benefits of it without worrying about your credit history.
6. The Bay Area Title Loans has a special feature that allows you to borrow against your car even if it is not registered in your name. As long as you have the documents that show the previous owner signed it, you can be approved for a loan. Even if your vehicle is stolen before the application process, you can apply for the loan provided you have the right documents.

Reputable companies not only work online. They have land-based fronts with loan executives who can help you out with any financial situation. From loan related queries to problems with repayments, you can ask anything to our executives at the San Jose, Campbell, Santa Cruz, Sunnyvale, Santa Clara and Gilroy offices (CA). If you need money from a reliable source against your car or your motorcycle, give us a call on the given number or just leave us a mail or visit https://bayareatitleloans.com/. Our most experienced loan experts will get back to you in a jiffy.