You probably won’t be able to find auto title loans in your local phone book. That’s because they are a special type of loan that you can only get from a company that specializes in auto financing. An auto title loan is also known as a car title loan or car equity loan, and it’s one of the fastest ways to get cash when you need it, assuming you own your car free and clear and have good credit. A title loan is simply collateralized borrowing with an emphasis on your car as collateral. A company will allow you to take out a loan against the value of your car as its security. If you want to obtain an auto title loan, get the details about Wisconsin auto title loans and also some other information below:
What is a car title loan?
A car title loan is simply a loan that you take out based on the value of your car as security. By “loaning” your car and using it as collateral, you can take out a cash loan from a bank or other lender. And since you own the car free and clear, you don’t have to give the lender anything except the value of the car. If you decide to get an auto title loan, the company that handles your transaction will simply sell your loan to a third party. The third-party will then collect the interest, or “profit,” on your loan. And since you own the car outright and the money is coming directly from the lender, there’s no credit check, no hassle and no risk.
How does an auto title loan in Wisconsin work?
The process of getting a Wisconsin car auto title loan is pretty straightforward. First, you go to a licensed lender, such as a bank, credit union or auto title loan company. You will fill out a simple application and provide a few pieces of documentation, including your driver’s license and a copy of your car title. Your application will be reviewed by a staffer at the lending company who will verify that you own the car free and clear and are able to make the loan payments. Once you pass this examination and the application is approved, your representative from the lender will then set up a loan repayment schedule and send you the loan documents. This will be your loan agreement, which includes all the details about the loan and the repayment due dates.
Things to consider when taking out an auto title loan
Before going through with an auto title loan, make sure you have thoroughly researched the company you will be applying with. Make sure they are licensed to operate in your state and that they have a good track record of making loans. Lenders must abide by a set of rules and regulations that are meant to protect customers like you. One thing you should always keep in mind is the loan amount. Just as with a credit card, the interest you will be charged on an auto title loan is usually around a certain percentage. If you fail to make payments, the lender may come after your car. Make sure you always keep a close eye on the condition of the vehicle. If you are having trouble making payments, try to work out a payment plan with the lender.
Final words: Is an auto title loan right for you?
While an auto title loan might sound like a good idea, it’s important to consider if it’s right for you. Since you are essentially borrowing against the value of your car, you should make sure you can afford the payments and are able to keep up with the loan. If you are in need of quick cash and own a car that you can easily convert into cash, a Wisconsin car title loan may be a good option. However, make sure you fully understand the terms of the agreement, and that you are able to make the monthly payments.