How does the borrowing process work when using car title loans as collateral with a lender such as Cash 2 U? In simplest terms, the customer provides the vehicle title to the lending company and receives a cash loan in return. The vehicle stays in the owner’s possession while he or she makes regular monthly payments or pays the loan back early. Although the title functions as collateral, the person still must provide proof of income. The lending company wants to verify that the payments are affordable and the customer will not default. The company does not want to go through the hassle of repossessing the vehicle.
The loan amount the customer qualifies for depends on a few factors. One is the value of the vehicle, as determined by specific company guidelines. The company usually will not lend more than the vehicle is worth at fair market value, although exceptions might be made if a customer has borrowed from this company before. Various states and different title loan companies have their own regulations about how much can be borrowed against a car or truck’s value, which means there are maximum limits even when a vehicle is worth a great deal more money. A lending facility in Florida might be willing to provide a maximum of $3,000, for example. A third factor, depending on the company, involves details of the vehicle. There may be a maximum number of miles allowed and a maximum age. It also has to be in safe, drivable condition and the customer is expected to drive the vehicle to the place of business so it can be inspected.
A major advantage of borrowing money from a company like Cash 2 U is that credit history is not taken into consideration. The lender does not perform any credit checks. An individual who has declared bankruptcy in the past few years or has other credit problems can still qualify for a title loan. A second advantage is a privacy. Unlike going to the person’s bank to apply for a loan, a place where familiar faces are seen, this process is more discreet. Visit the website to learn more about how to obtain a title loan.