Unexpected financial responsibilities are some of the major things that can unsettle your financial plans. If your car suddenly breaks down or a family member needs medical attention, all these can put you in tight financial situation. However, you do not have to worry if you have a car that the title is in your name, you can easily apply for a car title loan using your title as collateral.
Car title loan is a short term loan that you can easily assess when you are in an emergency, it does not require credit checks and the documents needed to get approved for a car title loan are just a few major documents.
How Does Car Title Loan Work?
To get a car title loan you need to apply with a lender who offers title loan, you can apply in person and you can also apply online. Most car title loan lenders now operate online, so you can contact them and apply for a car title loan. Once you apply, you will need to provide documents such as a proof of residency, driver’s license, car insurance, a proof of steady source of income, and a clear title in your name.
Your lender puts a lien on your title while you are still servicing the loan. As soon as you pay off the loan, you will get your title lien-free and your lender will provide you with a lien release document to make it official that you have fully paid off the loan.
When you get a car title loan, you can still drive your car around even when you haven’t paid off the loan.
How Long Before a Title Loan Repossession
No one wants to lose their car and even the loan company don’t like repossessing consumer’s cars either. They are in business to make money and they always want to avoid the stress of going through the repossession process when they can channel that energy into more productive issues. Hence, most loan companies will prefer a situation where the borrower is open and straightforward in communicating to the lender reasons why he or she might miss payments and also liaise to see if there are better way to make things easier for both parties.
When you difficult and you don’t communicate with the lender, then you are putting yourself and the lender in difficult positions.
How long before a title loan repossession? The answer is immediately; your lender can decide to repossess your car once you miss payment without communicating with them on reasons why you missed payment. There is no law or rule that mandates a time frame before your lender can decide to repossess your car, the lender does it at their discretion.
Hence, it is important that you pay extra attention to what your lender says in your contract regarding repossession, read and understand what it is like, this will help and guide you so that you will not lose your car.
