A lot of people have suffered as a result of bad credit. Due to the current unstable economy, several people have found themselves making late payments or even missing some payments. This leads to a bad credit score, which makes it very hard to obtain a loan. If you are in a similar situation, the good news is that you can still be able to get a loan, even with your bad credit score. One of the best ways of achieving this is by taking an automobile ownership loan in San Diego.
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What are Auto Title Loans?
These are loans taken against your car are called car title loans. Instead of using credit score to borrow money, the lenders only require your car title. The process of borrowing money in California is very simple, and it usually involves taking the entitlement to the lender, where the value of your car is determined. The San Diego lender will then give you money depending on the value of the car (usually a certain percentage of your vehicle’s value) and your repayment ability.
After you receive the money, the lender takes possession of the ownership, which makes it possible for them to repossess your vehicle if you fail to honor the repayment agreement. These San Diego loans are short-term, and they are usually repaid back in 30 days.
The amount of money lent to you by the lending company is dependent on your car’s worth. Therefore, you must own the vehicle to qualify. In addition, you should not have used it as a collateral for borrowing from another lending company in California. However, you can consider having the lending company refinance your old loan.
It is actually quite easy to pass all the qualifications for a loan, let alone just to submit an application. Most people are still afraid that they won’t be able to qualify for a quick money lending service but they are just dead wrong. As long as you own a car, with the title in your name then you will be able to get your application approved in no time. That’s how simple the process is, so why wait? Below are other things that you might need when submitting your application form to any money lending company.
Other qualifications for borrowing may include:
- Proof of income
- Having attained the minimum legal age
- A permanent residence
Benefits of Auto Title Loans:
- Easy and fast application process – most lending companies use online application systems, which are very easy and fast
- Fast approval process – since there is no credit requirement, applications are approved quickly if you have met all the conditions.
- Fast cash delivery – most lending companies will credit your account within the same day of approving your application
- Flexible repayment options – unlike banks, vehicle title lenders have flexible repayment options. You can negotiate with the lender the repayment terms that are most convenient for you.
- Multiple borrowing option – most lending companies will allow you to borrow more than once against your car, as long as its value supports the amount borrowed.
Tips on Borrowing Money against your Car’s Title
Automobile title loans are easy to obtain, and can bail you out of a financial crisis when you have nowhere else to turn. However, they can be very expensive and lead to more financial burdens if you chose the wrong lender. Below are some useful tips you should consider when borrowing money against your car’s ownership:
Ensure you pick a reputable lender
Before borrowing money, conduct a thorough research on the lender you are considering to use. Online platforms can provide you with valuable information about the lender in the form of testimonials in California. You can also call previous customers of the lender and ask for references.
Do not borrow money from the first lender you come across. Shop around and compare the interest rates and terms offered by different lenders.
Ensure you understand the terms
Before you sign a loan agreement, ensure you have thoroughly read and understood all the terms. In case there is anything you do not understand, ask the lender to clarify. You can also seek the help of a legal or financial expert to help you understand the terms.
Make sure you know your limits
When taking an auto title loan, never borrow beyond what you can afford to pay back. If you are unable to pay on time, you will only accrue more debt in the form of late fees and interest. You can also end up losing your auto if you are completely unable to repay the money owed.