One of the things that can turn people off from a loan is their repayment period. For example, if you apply for a payday loan, you will only have 2-4 weeks to pay off the loan. That`s okay if you only have a quick expense to repay, but very inconvenient if you`re dealing with massive debt. Although other loans have longer repayments, some could be difficult to qualify for. But, if you decide to get an auto title loan, you could easily qualify by using your car title as collateral! Even better, depending on your lender and loan terms, you could have a significant amount of time to pay your loan comfortably! But what are the minimum and maximum periods for title loan repayment?
The length of the loan period can vary depending on the title lender and the borrower`s individual circumstances. Generally, auto title loan terms range from 15-30 days to several months(usually 12-36 months). Some lenders may allow borrowers to extend the loan period by paying additional fees, but this will depend on the title lender`s policies and the borrower`s ability to repay the loan.
Keep in mind that title loan lenders will examine your income to determine your repayment period. That means you wouldn`t have to worry about getting a loan term that`s difficult to manage! However, you could always contact your lender if you struggle with making a payment. You don`t have to endure your situation on your own.
Speaking of contacting your title lender, don`t hesitate to call them with any title loan questions. They may be glad to aid you and make your loan experience as smooth as possible.
What Else Can Income Do Besides Setting the Minimum and Maximum Periods for Auto Title Loan Repayment?
Ask any title loan lender about what factors are essential for a car title loan, and they will answer: your car`s value and income. You may think income is only important for setting title loan terms, but it`s more intricate to the loan process than you think. Have you thought about what goes into the loan amount you`d obtain? Why it`s your vehicle`s equity and income level, of course! Title lenders verify both elements to determine the cash total you`d use for an emergency. The loan amount you`d get is the total you would have to pay back, so if you are into a certain loan, you`d have to be ready to repay it. However, you would only have that large sum if your income can support it; that`s why lenders review your income before funding your loan.
If you don`t owe anything on your car, then the value of the car is equal to its equity. But if your car is not paid off, the equity is the value minus the remaining balance. You can still get title loans for cars not paid off, but you might not get as much.
If you`re unemployed, you may think a car title loan is out of reach. But that`s not true! You might use various alternative kinds of incomes to prove you can afford auto loans. Some documents you can use include: statements from the bank, income from retirement, pay stubs, pension income, worker`s compensation, settlement income, a employment letter, or other accepted variations. You can talk to your lender if other sources of income are applicable for a title loan.
While you`re at it, you can discuss your lender`s policies to see if they can arrange a lengthier loan term if needed. But don`t forget how you might have to pay extra fees for that to happen.
Each borrower has a different idea of what minimum and maximum periods for auto title loan repayment are good. Some might find a short-term loan to be favorable, while others prefer a longer period to repay loans easily. However, the loan duration you`d get might depend on your title loan lender or provider. It is important to find a loan option that can check all your boxes- it should be convenient, accessible, and offer the terms you are looking for.
But no matter which title loan lender or provider you choose, you could find an option that fits your needs. Talking to the lender before applying may be important to see if they have reasonable repayment periods. Weigh your different options and decide which lender works best for you!