how do title loans work?
The amount of your short-term cash loan is based on the value of your car (determined by various factors including current market value, condition, etc.). You must have a clear title (free of liens), proof of income, proof of permanent address and be 21 years of age to obtain a title loan. Once you meet the qualifications and your car has been appraised, you get the cash you need and get to keep your car. When you pay the loan off, the title is returned.
gailforce_wind Says: June 26th, 2008 at 9:16 am A car title loan is a glorified pay day loan with outrageous interest and little benefit to the borrower. The lender will hold your car title with a document that automatically forfeits your vehicle to the lender in case of default on the loan without the usually unpleasantries involved in collecting a debt. You have to keep the vehicle insured and sometimes you have to leave it with the lender in their safekeeping. You will pay a tremendous amount of interest, sometimes disguised as a processing fee or storage fee, and the turn around time for repayment is usually 30 days or less. Often from pay period to pay period. The kicker is the loan can be renewed and in so doing you are charged everything all over again. Some of these loans have APRs of over 435%. So beware and if you need a small loan desperately, try every alternative you can before resorting to the payday/title sharks.
