A car title loan works just like a normal loan, with the difference that the company providing the financial liability takes the value of the payer’s car as collateral. Typically, this type of offer is addressed to people who have problems with obtaining a loan from a bank. The sums of this type of benefits exceed traditional loans. You can receive up to $50,000. The loan amount depends on the value of your vehicle.
Where to get the best car title loans?
Wowloans is a popular car title loan company on the Internet. Loan companies grant loans up to $50,000 against the car, all you need to do is complete a loan application on the company’s website.
Interestingly, Wowloans grants car loans even without credit check. Securing a car is a sufficient form of security for the lender to provide support even to people who are already in debt. In the case of installment payments at Wowloans, all dates are included in the schedule, which we receive from the lender. The company ensures that the customer does not have to worry about forgetting the repayment date – the lender will remind you of the repayment date and amount via e-mail and via SMS.
How does online title loan look in practice?
After choosing a company that provides a title loan service, you complete the online registration application. Then you wait for contact from the lender, i.e. the loan application process is very similar to applying at traditional online loan companies. After receiving the approval of your application, you will receive a contract to be signed and the conditions that you still have to meet to get the money. You must be aware that under such an agreement, if we fail to pay off the debt on time, the car will become the property of the loan company. This is a very risky form of borrowing money. Safe only for people who are sure that they will be able to pay their liabilities on time.
The lender will receive a power of attorney from us to enter the vehicle registration certificate. There is one thing worth paying special attention to. When taking a title loan, the car is not fully ours at this point. What does it mean? We need to know that with the contract, the loan company becomes the owner of the car in 51%. As written earlier, in the event of our insolvency, the company that granted the loan has the right to take over the rest of the ownership of your car.
Car title loans – formal matters
At the end, you have some formalities to complete. What should you do? After accepting the contract, you must enter the loan company as a co-owner of the car. The joint owner must of course appear in the registration certificate. What time do we have to settle formal matters? The formalities must be completed within seven days from the conclusion of the contract. A week is quite a long time. Finally, when we meet all the above-mentioned conditions, we still have to send the lender a scan or copy of the new registration certificate, as well as registration number.
When will the car be confiscated?
Many people believe that in the case of a title loan, the vehicle will be picked up overnight without any notice. Therefore, it is worth denying these guesses. How is the process of collecting the subject of the pledge by the lender? All activities are legally regulated.
It may take some time to obtain the necessary writ of execution for opening enforcement proceedings. Before this happens, the creditor must obtain an appropriate document called an enforcement order, which will include the lender’s, debtor’s data and the amount of the debt.
The document should also contain an enforcement clause, which means a seal or an imprint containing information confirming the compliance of the enforcement order with applicable law. Only when in possession of such documents, the creditor can transfer the case to the appropriate bailiff, who on this basis seizes. Then, within 7 days, the vehicle is sold by auction or at a price set by the debtor. If the process is unsuccessful, the creditor has the right to buy the car at the minimum price within two weeks or to ask for another auction date.
How to remove the lender from the registration certificate?
If we return the loan to the lender, we are entitled to remove him from the registration certificate. However, before this happens, he must provide us with an appropriate declaration of release from security. Its obligatory elements will be: the number of the registered pledge, the date of deletion and the name of the court which issued such a decision. It is also possible to provide the appropriate office with a copy of the court decision. In addition, it is necessary to have a registration certificate and fill in an application for the removal of the lien.
Car loan – advantages and disadvantages
A car loan can be an interesting alternative for people who have difficulties receiving a loan due to bad credit. However, this form of borrowing is not without its drawbacks. Let’s take a look at the pros and cons of title loans:
- high loan amount, higher than with other loans,
- modern service,
- for people with bad credit history,
- if we do not pay off the loan on time, we will lose the car,
- we won’t get a loan against a very old car.
It is up to each client to answer the question whether this form of financial assistance is suitable for me. The fear of a car loss can be very mobilizing, so we will try even more to deal with the repayment of the financial liability without any delays and it is one of the few opportunities to receive the so-called loans without credit check.
Online Car Title Loan Alternatives
Online loans for bad credit are available in numerous offers, not only Title Loans. You can choose other amounts, terms, types of secured or unsecured financing, etc. Compare the best loan options with WowLoans online: