What's a Title Loan?
A Title Loan Is a Type of Secured Loan Where Borrowers Can Use Their Vehicle Title as Collateral. Borrowers Who Get Title Loans Must Allow a Lender to Place a...
A title loan is a type of secured loan where borrowers can use their vehicle title as collateral. Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount.
What is needed for title loan?
- Original vehicle title showing sole ownership.
- Government-issued identification matching the name on the title.
- Utility bill or other proof of residency matching the name on the title.
- Current vehicle registration.
- Proof of vehicle insurance.
- Recent pay stubs or other proof of ability to repay the loan.
What is the downside to a title loan?
Disadvantages. Car title loans are for very short periods of time, usually a month at the most. At first the interest rate is low, but every month you need extended, the interest rates rise to high levels. When you are borrowing a high amount, it may be tough to pay it back in the short period of time.
Elena Rostova holds a Master's degree in Public Health Journalism. She covers groundbreaking medical research, holistic wellness trends, mental health awareness, and nutritional science.
