South Carolina Car Title Loan
Auto Title Loan, Car Title Loan, Vehicle Title Loan, and Auto Equity Loan
The Basics of a Car Title Loan
Loans are normally secured with some type of collateral, which in a car title loan consists of the vehicle that you fully own. The loan will be based on the amount that the vehicle is worth, although it may be only a part of that amount. The amount of the loan is usually between $500 and $50,000.
At a time when many Carolinians are cash-strapped after experiencing a bankruptcy or foreclosure, car title loans in South Carolina have become a popular way to obtain money. However, there are many things to consider before taking out such a loan, including the risks and responsibilities that it involves.
Since the vehicle can be examined in person and its cost estimated by the lender, the transaction can usually be completed with relative ease. The agreement will also allow you to continue to drive your car, although you will be expected to give the lender an extra pair of keys. Additionally, you should not expect to keep the car if for some reason you are unable to repay the loan in its entirety.
The Advantages of Obtaining Cash Through a Car Title Loan
Car title loans in South Carolina offer an advantage over other types of loans because they enable you to borrow money in a hurry. You in fact should have your cash within a day or two. Since the collateral is accessible and the risk is minimal for them, lenders are normally willing to make an offer to a would-be borrower. These types of loans are ideal for those with bad credit or those who have no credit history. This is because the person’s credit score in no way affects the value of the vehicle that is being used as collateral.
Car title loans are considered short-time and are usually made for a period of no longer than a month. The interest rate on such a loan can be in the range of 20 to 25 percent, although this can be manageable if the amount is quickly repaid. Many individuals who have been unable to secure a bank loan have found success with 90-day loans. However, the interest rate will rise dramatically if the loan is extended over such a period of time.
Understanding the Risks of a Car Title Loan
The fact that an automobile is mobile also means that it can be easily repossessed if you default on the original loan. The lender will then sell the vehicle to reclaim the amount that has been borrowed. If the price of the vehicle turns out to be less than you owe, you will have to make up the difference. If, however, the vehicle is worth more than anticipated, the borrower gets to keep the additional amount.
Another negative aspect of a car title loan is that the immediate cash may be too inviting, which can encourage those in desperate need of financial assistance to seek a loan without putting much thought behind what they are doing. Hasty decisions often turn out to be bad decisions.
The Best Approach to an Auto Title Loan
In order to avoid being victimized by a predatory lender, you should do some research before seeking such a loan. Lenders who are willing to deal with you without excessive red tape and who offer reasonable interest rates should be the first to consider. You will want to obtain in writing details about the nature of the agreement, including a quote of the interest rate you will be charged.
When applying online, a lender will want information about the make of the vehicle and its mileage, and will also ask for its vehicle identification number and for proof of insurance. A lender may require a borrower to purchase additional insurance if there is an indication of insufficient coverage, this in the event that the vehicle is involved in an accident before the loan is repaid.
There are scores of companies offering car title loans in South Carolina. Choosing the right one requires a careful review and assessment of a number of companies in order to determine which one will offer you the best deal. Car title loans can have disastrous consequences if they are done without proper planning. Properly done, however, they can be provide you with the cash that you need.