Anyone who is currently struggling with financial issues and could use a loan will probably want to get to know the title loan process. You may think that a loan isn't available to you because you don't have a great credit history. You should know that there are a lot of alternative loan products out there that might make financing a possibility for you despite blemishes on your credit report.
A title loan is a loan that you can be approved for just on the basis of your ownership of a vehicle. This type of loan involves having your vehicle held as collateral so that credit history is not so important.
The process of taking out this kind of loan starts with an application. An application is necessary because it gives the lender some important details about the individual who is applying. This information will include that applicant's identity, location, and vehicle details. Vehicle details are an important aspect of an application for title loans Houston because the vehicle is considered collateral on the loan and secures the loan.
Vehicle details that need to be entered on the application include the age of the vehicle as well as the vehicle's make and model.
Once all necessary information has been supplied on the application, the application can be submitted for evaluation. Then, the application is looked over by the lender and a loan is offered if possible. Any loan offer sent out after an application is filed will include all the important characteristics of the loan that's being offered including its make, model, and mileage.
If the applicant finds the loan terms acceptable, he or she can provide the vehicle title so that the loan can be finalized and the loan funds sent out. Then, the applicant makes payments until the loan is paid off and then gets the title back.
Anybody applying for title loans in Pasadena should be aware of the fact that title loans vary by state according to state law. Texas laws place some limitations on this type of loan. For example, in Texas there is an interest cap in place of 10 percent. There aren't going to be any title loans in the state with an interest rate of over 10 percent. Another limitation in the state on title loans is a limit of only 180 days on the loan term.
Secured loans- One important distinction about title loans in Pasadena that it's a good deal to remember is that these are secured loans. This means that these loans involve collateral, which in this case is the vehicle owned by the borrower.
Liens on the title- A lien on a title means that the vehicle has been financed. It's possible to get a title loan with a title with a lien on it if the vehicle owner has enough equity.
Repayment- The terms of these loans are flexible and lenders work with borrowers regarding repayment.
Difference from payday loans and other alternative loan products- This is not a payday loan and doesn't affect the borrower's next paycheck.