Don't Spend Another Minute Trying To Understand Car Title Loans

You have probably heard of car-title loans but don't understand them. How do they work? Are the a safe financial option? Are they the best option for you? Car title loans are also known as auto title loans, pink slip loans or simply "loan title".

A car title loan is a collateral loan where the borrower used his car or truck to secure the loan. The car will have a lien placed against it and the borrower will surrender a hard copy of the title to the lender. A copy of the car key is also necessary. When the loan is repaid the keys and the title will be given back to the borrower as well as the lien being released. If the borrower defaults on the loan payment, the car will be reprocessed.

A car title loan is a short term loan that carries a higher interest rate than a traditional loan. The APR can get up as high as 36% or more. The lender does not usually check the credit history of the borrower but will look at the value and condition of the car in deciding how much to loan.

Being that a car title loan is considered a high risk loan for both lender and borrower, the high interest rate is assessed. Many borrowers default on this loan because they are in financial trouble to begin or were not in the position in the first place to take out the loan. This makes it even riskier for the lender.

The car tile loan will only take about 15 minutes to achieve. The borrower can receive anywhere from $100 to $10,000. Because of the risk involved with some borrowers, traditional banks and credit unions may not offer these kinds of loans for many people.

Atlanta Title Pawn offers title loans for customers in the Metro-Atlanta and surrounding areas.

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