What Happens When Car Title Loan Companies Keep Your Title?
There are a number of loan options you can consider if you are struggling to repay an emergency expense. It is always possible to sell items online or hold a fundraiser, but it might take time to obtain the funds. That’s inconvenient when you have to pay the bill immediately! What about asking friends and family for cash? It could be beneficial, but they might not have enough funds for your emergency. And, it is awkward to ask!
Thankfully, you could opt for an easier choice of applying for a title loan! Through that option, you would only have to use your vehicle title as collateral to apply for money in no time! What’s even better is that you may have the necessary cash to cover the entire expense! Just make sure your car has plenty of equity to justify the amount you need.
Although that loan type can sound great, you may wonder one thing: “Do title loan companies keep your title?” The answer can vary. Tile lenders will place a lien on your title when you begin the repayment process. When lenders place a lien, they do not need to have the title physically in hand. In some states, the title lender can place the lien electronically, but the state may need to hold the title physically until the loan is paid off. If you only have a lien on the title, the lender will take it off when you fully repay the loan.
Keep in mind that no matter what lenders or the state do to your title, you can still drive your car as you usually would during the repayment process! Yet, you will only have that privilege if you’re responsible for your payments each month.
Do you have any questions? Talk to a title lender or provider to help clarify any concerns.
Do Auto Title Loan Companies Keep Your Car Title if You Don’t Repay the Loan?
You may have read what would happen to your title during / after repayment, but what happens if you don’t pay off the loan? The truth is that collateral can go both ways when it comes to title loans. While it can help you earn funding, collateral can also ensure lenders that you will repay the loan. If you cannot meet your payment obligations, the title lender can repossess your car and sell it to cover the remainder of your debt. Your vehicle title will be included in the purchase!
Reading about that consequence is frightening, but there are some ways to get around it! You may be able to retake your vehicle if you repay what you have left on the loan. But, if you don’t have the funds to cover it, you could negotiate with your lender about a possible solution. They could help you find ways to escape your predicament and pay what you owe!
You can also refinance your car title loan to get more time to repay the loan. However, you should consider that option carefully since you may have to pay off a second loan. If you don’t feel comfortable with having two loans, you could talk to your title lender about finding another option.
It’s understandable to think you’re alone during a repayment issue, but you’re not. As soon as you have problems repaying, you could contact your title lender. Find a solution together and work towards covering the entire loan amount.
Now That You Know Title Loan Companies Don’t Keep Your Title, Where Should You Apply for an Auto Title Loan?
Aside from asking if car title loan companies keep your title, you should also wonder which title loan option is the most suitable for your situation. Although there are several choices to consider, some might be better than others. For example, if you opt for a title loan, you could get through a flexible approval process that could let you get money quickly! You would only have to follow a few steps to apply online with ease.
However, no matter which title loan lender or provider you choose, you could still acquire the funds you need for an emergency if you qualify! Just make sure you meet the requirements to earn approval. Don’t forget to contact your title lender if you have questions or concerns!