What Is an Auto Title Loan?
If you need money in the short term due to an emergency or crisis, there are several options out there that you can choose. You may try to talk to family members or your bank, but you aren't able to get the amount of money you need. There are some other options available to you. One of them is to get a car title loan. But what exactly is an auto title loan?
Auto Title Loan
An auto title loan is a short-term loan. It's generally for a period of 30 days, but you may be able to extend the term when you get close to the end of it, depending on your state and the loan company that you are working with. If you do that, you may have to pay back part of the original loan and then pay additional fees. So, how does it work?
Application
The first thing that you need to do is apply for the loan. To do that, you will need to have a few things. You will need to have a title for your car, a picture ID, and proof of income. Your title needs to be clear—that means that there aren't any liens against it by other people or companies. That's because you are using your car as collateral, and if you don't pay your loan back on time, you run the risk of having your car repossessed, and if there is another lien on your car, that means that there is someone else who has a claim on the car. The picture ID will probably need to be a state ID, not something like a work ID. You may also have to take in some mail to prove your address. If this is something you are interested in, you should check with the loan company beforehand. You may also have to call upon some roadside assistance to make sure that the car is OK.
Repaying It
When you have reached the end of the term of the loan, you will need to repay it. You can always pay it ahead of time if you can or you want to. Paying ahead of time may be to your benefit, especially if you are accruing interest daily.
If something has happened and you need to have money quickly, an auto title loan may be one of the choices that you have to consider.
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