Title Loans continue to gain popularity and are currently considered the most profitable way to obtain additional financing in a difficult life situation. Everyone is thinking that who is the best financial advisor near me for answering the above question. This question will be answered by our today’s guest, respected financial advisor Maggie Gallagher. Good evening Maggie! How are you doing? Do you think it’s important to educate people about lending?
Good evening, Katheryn. I am wonderful and I am very happy to be here and share my knowledge so that more and more people begin to understand the field of lending. Undoubtedly, it is very important to answer the main questions of potential borrowers and clients, as the level of financial education in the country is very low. Many people don’t know which loan to choose and whether it will be a profitable solution for them.
Absolutely agree with you! That is why today we have gathered here to talk about such type of lending as the Title Loan. Maggie, please tell us briefly what kind of loan it is and what distinguishing features it has.
First of all, it is important to note that the Title Loan is a secured type of lending. The potential borrower should understand that the title of the car as collateral for loan and they will need to hand it over to the lender at the time of repayment of the debt. Thus, before applying, the lender must make sure that he has the title of the car in his name. Also, the loan is short-term and most often repaid within a month, but some lenders also offer Title Installment Loans.
Many visitors to our site are interested in how much money can a borrower get with a Title Loan. What determines the loan amount?
This is a good question since the loan amount can depend on many factors. First of all, this is, of course, the income of the borrower. Any lender wants to be sure that the loan will be paid on time. Also, the amount of the loan will directly depend on the car of the borrower. As a rule, lenders offer from 25% to 50% of its value.
What do lenders most often pay attention to when evaluating a car?
Specialists will evaluate the vehicle according to criteria such as brand, model,
condition, cost, mileage, and so on. In other words, the more expensive the car and the better its condition, the more the borrower will be able to get. Most often, the loan amount can range from $100 to $5,000, but it can also reach $10,000 or more.
Maggie, next question. How easy is it to get a Title Loan these days? And what are the basic requirements for an application to be approved?
Now getting this loan has become quite simple, since most lenders have simplified the lending process as much as possible. If the potential borrower is a US citizen or an official resident who is at least 18 years old and has an income, then the chances are already quite high. It is also more common for title lenders to ask for a social security number, government-issued ID, and contact information.
– What documents on the car the borrower must have to receive financing? And is it possible to get approval without a title?
– Unfortunately, obtaining this type of loan without a car title is impossible, as this is one of the key requirements of any title lender. In addition to the title, you will need to provide documents such as current registration, government issued identification matching the name on the title, insurance proof and proof of residency matching the name on the title.
– Thanks a lot, Maggie! Now our site visitors know what documents they need to have in order to get approval. However, many of them are wondering if it is possible to get funding completely online or is it necessary to go through a physical inspection?
– There are now a huge number of title lenders that operate completely online, eliminating the need for borrowers to visit the physical location of the lender. That is why the lending process has become even more convenient.
– However, what about the physical inspection of the car? How can a lender assess the condition of a vehicle?
– When applying online, the borrower does not really need to visit the physical location of the lender to get approved. Instead, the borrower must provide recent, high-quality photos of the vehicle in order for the experts to evaluate the vehicle online.
– Maggie, could you also tell us a few pros and cons of a Title Loan that would help our readers make the right decision?
– Of course, Katheryn. The main pros I would include fast approval, the ability to continue to drive your car and fast financing. The disadvantage is that the loan is still secured. This means that in case of non-payment of the debt, the borrower may lose his vehicle, as the lender will take it to consolidate the debt on the loan.
– Maggie, when would you personally recommend applying for a Title Loan? And do you think this financial option is a profitable solution?
– Personally, I would advise applying only in case of an emergency, as this loan is still quite risky. And frankly, if people have alternatives, I would advise avoiding these loans as they also often come with high interest rates and additional fees.
– Perhaps, these were all the questions for today. Once again I would like to thank Maggie Gallagher who took the time to be with us today. Nice to meet you, Maggie!