A title loan is a type of loan, where an asset is used to secure the loan. The asset is a vehicle, in the case of car title loans.
This acts as a form of preventing borrowers from trying to default on the loan terms. You may have also heard of them referred to as title pawn loans. That’s because, traditionally, pawn shops would take people’s vehicles as collateral in exchange for a cash loan. Once again, there would be no credit check as the cost of the loan would depend entirely on the value of the vehicle. Before applying for a loan, find out how a lender will value your vehicle. Ideally, they should be referencing an objective third-party like Kelley Blue Book.
The collateral is an assurance to the lender that they will get paid for the loan. The lender will be given a chance to put a lien on the title which will be removed once you pay back the loan (the vehicle title will be returned to you with no liens on it). You just have to mention the type of vehicle you have, the make (which company made the vehicle), the year of the purchase, the model, the style and the year when you’re applying for the loan. Based on this data, the value of your title is ascertained and you’re given the loan amount on that basis. So as you can understand, it’s a hassle-free process. And the biggest advantage of this car title loan is probably the omission of the need for good credit. Learn more at https://thenewswheel.com/a-guide-to-car-title-loans/