There are usually difficult days when you would be down financially and need quick cash to bail yourself out. In many cases, having poor credit makes the condition worse as you cannot turn to your banks for assistance. In such hopeless circumstances, one of the best options you explore is getting auto title loans.
How do Car Title Loans in Los Angeles work?
Foremost, you should understand that car title loans in Los Angeles offer you an opportunity to obtain financial assistance without the need for you to give out any of your properties. Notably, when you are getting a loan from most financial institutions, you are often required to use any of your valuable properties as collateral which will be surrendered to the institution. However, car title loans in Los Angeles are different because you will only have to use your vehicle as collateral without having to surrender it.
Before the lender will accept to give you the loan, there are a few steps to be taken to protect the interest of both the lender and the borrower. The lender will first confirm whether you are the owner of the car or not and also find out if you have made full payment for the car. If you are not the owner of the car or you are yet to complete the car payment, you will be denied a loan.
Once you have been confirmed as the legitimate owner of the car, your car will be valued to determine the amount of money that can be loaned to you. Furthermore, your ability to pay the loan back in installment monthly will be also ascertained. You will also be required to submit proof of insurance and a photo ID during application for the loan.
Afterward, the lender will be added as the lien holder on the car title and this will remain so until the loan has been paid off completely. The loan can be thousands of dollars that can be repaid over a period of 12 to 36 months. Once you have paid off the loan, a new car title will be issued by the Department of Motor Vehicles (DMV) without the lender’s name.
Benefits of Car Title Loans
The most prominent benefit of obtaining pink slip loans in Los Angeles is that the lender will not take your car away from you. The vehicle will still be in your possession and can be used whenever you want.
Also, obtaining auto equity loans in Los Angeles does not involve rigorous or time-taking processes. Therefore, your car title loans can be approved in just a few days after application.
What to do when applying for a car title loan
When applying for an auto title loan in Los Angeles, you should take your time to understand the terms of the loan. Credible lenders should be able to provide you written terms for proper review. Some of the things you need to pay attention to when reviewing the terms include finance charge, interest rate, lien fees, late fees, length of the loan, loan origination fees, and processing fees.