How Do Car Title Loans Work?
If you're the type of person who's always in need of some quick cash, but don't want to go through the hassle and red tape of traditional banks, car title loans might be just what you need. A car title loan is a type of "quick cash loan" that allows people to borrow money against their vehicle title for an indefinite amount of time. Car title loans are typically issued by storefront lenders like pawn shops or payday lenders. They're also available at private dealerships and sometimes even banks. car title loans work by using the vehicle's title as collateral. The lender uses this collateral to issue a loan – usually for a term of anywhere from one week to two years. The amount you borrow varies from place to place and from lender to lender; some lenders won't even accept less than $2,000 per month as collateral, while others won't go above a couple of thousand dollars. The terms, penalties, and interest rates on car title loans typically vary wid...