Car Equity Title Loans

Everything You Need to Know about Car Equity Title Loans Georgia

FindItMore | Financial problems are quite common these days, as many people have lost their jobs due to pandemic. This problem is changing every person’s life around you, so you can’t ask for help from your close friends. There are medical bills and other expenses that you need to tackle right away. You can’t borrow money by keeping your car as collateral in the bank because you don’t own your vehicle entirely. If that’s what your situation looks like, then it’s time to know everything about Car Equity Title Loans, Georgia.

What is Car Equity Title Loans in Georgia?

If you have got a vehicle through a car financing deal, you are not the car owner. So, when cash need arises in your life, you can’t put this property online; at least traditional lenders can’t help you. However, it doesn’t mean that you can’t attain a loan. A great facility available is in the form of a car equity loan. When you are paying off your car loan for some years, you develop equity, which is a difference between what you still owe on a vehicle and what is your car’s market value.

Now the question is where you are going to get equity title loans in Georgia. Well, the answer is simple. You can rely only on online lenders- they are fast and ready to deal with any financial situation. If you have a car’s equity, you can opt for this kind of loan. There are traditional loan facilities also available where you apply for a loan in a bank or credit union. However, people prefer modern lending solutions over traditional one as they are fast and brings an easy application process. As far as the loan amount is concerned, you should know that it depends on your equity and car’s market value. However, online lenders can easily offer better rate and amount than that of banks, because Federal and State Laws aren’t very strict about title loans.

How Does a Car Equity Loan Work?

Usually, you must have a clear and lien-free title to obtain title loans Georgia. However, when there is a lien-holder, but you have some equity, lenders are ready to lend you money. The whole process works exactly like a title loan as the title of your car transferred to the lender’s name. He becomes a new lien-holder, and then you pay him back the loan amount. You must own a vehicle or at-least have some equity.

How Long Does it Require to Pay off Loan?

Car Equity title loans are short-term. But many lenders are ready to facilitate their customers who are in economic trouble. Instead of asking for debt payback in 30-days, they are prepared to set payment terms of 12-36 months with installment loans. The purpose here is to offer you a helping hand. However, you should beware that longer loan terms mean debt cost will be boosted up.

Make sure you pick a lender who changes no prepayment penalty to keep following the term until you have all the required loan amount to close this deal. In simple words, you can get rid of a car equity title loan in your terms, as and when you are ready.

Can you get a Loan with Bad Credit?

Financial trouble amplifies to a great extent when you have a bad credit issue because you can’t go to traditional lenders for help. Online lenders understand your situation; they offer you a loan in exchange for your car’s equity value. It would be best if you realized at this step is that this loan amount won’t entirely be based on your equity value. The more equity you have, the higher the amount of loan will be. A credit score doesn’t matter, so a person with no credit or bad credit can apply for this loan.

What Will Happen If I don’t pay off My Title loan?

There are 2 ways to deal with this problem. The first less-risky method is one where you ask the lender to rollover your remaining loan amount into a new deal. In that case, you don’t lose your car but agree to pay a loan amount plus additional fees and interest. It might be an expensive option, this expense is nothing when you compare it with a situation where you lose your vehicle.

The second option is when you know that it’s not possible for you to pay off a loan. Therefore, your lender repossesses your car and sells it in the market. The sale price is first used by the lender to recover his loan expenses and after that handover you the surplus.

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