What is a Title Loan?
A title loan is a special cash advance that allows a person to use his or her car to secure the proceeds. It is an excellent alternative to a traditional loan because the lenders are more lenient toward the applicant. A person who does not necessarily have good credit can often gain approval for this type of advance. Likewise, a person who is not working a traditional job may also receive a title advance. The main qualifying factor for a title advance is that the person has ownership of vehicle. He or she can prove such by showing the lender the title.
Qualifications for a Title Loan
To qualify for an Atlanta title loan, the applicant must be 18 years of age or older. Lenders will not give funds to a minor because minors cannot sign legal contracts. A title advance calls for a contract and can therefore lenders may only give them to sound adults.
The vehicle should be in good working condition to qualify for the advance. A representative will inspect the vehicle before the lender approves the advance. He or she will check the make, model, year, mileage and overall condition. A car that is in pristine condition can qualify a person for a higher loan.
Other than having these few requirements, title lenders are very lenient. They do not require their borrowers to have good credit because the automobile acts as collateral to secure the loan. The lender will put a lien on the vehicle until the borrower repays the proceeds.
How it Works
Receiving a title advance is very simple. The first step in the process is contacting a lender for help. The person requesting the advance will have to complete an application for assistance. Once the applicant applies with the lender, it will have someone inspect the car. The title lender will make an offer on the loan amount based on the value of the car. If the applicant agrees with the offered advance amount, he or she will express such by signing a contract. Once that person signs a legal contract, the lender will usually distribute funds into the borrower’s bank account or write out a check the same day.
Borrowers have approximately 30 days to repay a title loan. The lender will ask the borrower to pay the amount of the loan plus interest. The finance charge varies by lender. If the borrower has difficulty repaying the advance, he or she can ask the lender for an extension.
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