Auto Title Loans - How Much Can I Borrow Against My Car Title?

The total amount of money that you can borrow for an auto title loan will depend on how valuable the lender considers your car to be. It is a good idea to personally do some research to find out how valuable your car is. If the lender says the value of the car is roughly the same, than you know you are dealing with an honest lender. In order to take out an auto title loan, you will need to have paid off most or your entire original auto loan.

In some cases, a title car loans lender will ask for financial information such as your available income. They may check your credit score, although bad credit does not necessarily mean you will be refused. Instead, a bad credit score is usually a reason for the lender to charge you a higher interest rate.

In order to find out how much your car is worth, you can use the Kelly Blue Book (KBB) valuation system in order to determine the value of your used vehicle. Most lending companies will offer you a loan with a similar value. Another option is to find out what the current wholesale value of your vehicle is. A fair lender will offer you a value between twenty and fifty percent of the wholesale value.

The reason that a lending company will not give you a hundred percent of the wholesale value is that lenders need to take into account the cost of repossessing and selling the vehicle. If you are incapable of paying back the fifty percent you borrow, or you really need the full value of the vehicle, it is a better idea to try to simply sell the vehicle instead.

Every state has a different set of laws regarding how car title loans for people with bad credit can be set up. In some cases, smaller loans may have a fixed income rate. You may also find that you are charged a higher interest rate if you take out a larger loan.

Getting an auto title loan is often a better option than an unsecured personal loan. If you are in a financial crunch and don't want to borrow against your home, borrowing against your car will usually offer you better interest rates and larger volumes of cash than unsecured personal loans. This is true even if you have a good credit score. So long as you know you can pay back the loan, you will not lose your car.www.titlecarloans.net