What is an auto title loan?
An Auto Title Loan is a 30-day loan that is secured by your paid off vehicle. We place a lien on your vehicle and you continue to drive it. When the loan is due, you may: a) Pay a first time loan in full with 0% interest. OR b) Pay the interest (only 10% on first time loans) and we will generate a new loan contract which will be at 20% interest for the next 30 days.
An auto title loan, also referred to as a car title loan, is a great short term funding option for individuals in need of immediate cash. A car title loan in California is known as a pink slip loan. Individuals can borrow money using their car title as collateral.
Sources:
http://www.ca-cartitleloans.com
http://www.ca-cartitleloans.com/what-is-a-pink-slip-loan.html
An auto title loan is an easy way to having that dream car. It requires only a minimal qualification: all you need to have is a job. The catch is that this loan is high risk and has unbelievably high interest rate. Why Is It So? It is being offered as a small emergency loan, so lenders give skyrocket interest rates. An average annual interest rate for this loan is triple digit or up to 300 percent interest rate every year. Because of lax state laws, lenders could also repossess your car if you could not pay your loan at an agreed date. Since they have duplicate keys of your car, lenders could haul your car from your own home late at night. The period of time given to customers is also very short. As what the CFA, or the Consumer Federation of America, had reported, some lenders who give loans of up to $2,500 would demand for repayment in just 30 days. If these would not be paid within this period, the customers would be paying more monthly interest rate of about 25 percent. Then it wou