DescriptionA title loan is an unsecured form of loan whereby borrowers are able to use their car title as security. Borrowers are only entitled to receive a loan amount if they pay off their car within a certain period of time. The loan period is referred to as the "term". If the borrower fails to make the monthly payments, the lender has the right to seize the title of the car and sell it. This process is known as car seizure.
Responsible Lending: A responsible lending institution like the Georgia Title Loans company is always liable in cases of car title loans. Such lending institutions are bound by law to undertake reasonable procedures to ensure that the borrowers do not default on their repayments. They are also liable to provide detailed explanations to borrowers on the procedures involved to avoid any confusion. Lenders are bound by law to disclose the terms and conditions to the borrowers.
Credit Union Agreements: It is always advisable to check the contract carefully before you borrow. Most credit unions will charge a very high rate of interest, despite the fact that the interest rate is set according to a market index. Some credit unions will charge a very low rate of interest but will charge very high fees. Before you borrow a car title loan from a credit union, you should always check out the credit union contract thoroughly. You should not hesitate to clarify all your doubts. To help you get the best title loans, see this link: https://georgiatitleloans.com/locations/title-loans-lawrenceville-ga/.
Finance Charge: Some lenders charge exorbitant fees, even when you make timely repayments. Before you take a car title loan from a particular lender, find out whether the fee charged is reasonable or not. If you do not pay the full amount in time, the bank or the finance company may have to sell your car. Even if you are lucky enough to avoid losing your vehicle, you will end up paying more in terms of finance charges.
Duration Of The Contract: Many people borrow money for a short-term period like 10 days or so. Some lenders offer a longer duration in case you make regular repayments. In such cases, your interest rate may be marginally lower than that applicable for long-term loans. However, a car title loan usually does not carry a long term.
Collateral: You can borrow money for a short-term loan using any type of collateral. However, your choice of collateral matters a lot. Most borrowers prefer vehicles as their collateral. If you do not want to lose your vehicle, make sure you choose a high-value vehicle to borrow money against. Kindly visit this site: https://en.wikipedia.org/wiki/Logbook_loan to learn more about this topic.