The most common question we get from customers is what happens to their car when they take out an online title loan. Some people still think a lender will take their car when they take out a loan. While it's true the lender will use the vehicle as collateral, that doesn't mean they can't keep driving. It wouldn't make much sense if you had to give up access to your car as a way to borrow money. How would you get to work to pay your bills or even get out and about?
Similar to other loan offers like mortgages and personal loans, most short term loans have different restrictions and regulations that cover loan amounts and interest rates. Before you apply for any type of loan you need to check with your state to find out what the latest rules are for payday loans and other vehicle equity offers. Most state laws change on a yearly basis and you need to stay on top of the updates.
When you first apply for a loan one of the last questions you're going to ask is how much time you have to pay off the full amount due. Reason being, you want to find out when you get the cash and what happens to your vehicle title. But don't forget to ask what the payoff terms and time limit is. Also see if there's a prepayment penalty for paying off the amount owed early.
Each state in our country has different regulations and rules that govern finance lenders. Some states choose to let the Federal Government regulate title loan companies and others take the regulations into their own hands. That's why it's important to check your state restrictions on online title loan companies. You don't want to apply with a lender and then find out they don't allow these types of loans.