What happens if unable to repay Auto Title Loan?
In the previous articles, we have discussed several aspects and benefits of getting the auto title loan. These articles help people to get as much information as they can for making the best financial decision. But, many readers are still finding the answer of their one question, what would happen to their loan if they are unable to repayment the loan amount?
Obviously, many of you who have not taken auto title loan yet may find it difficult to give a right answer to this question. Through this article, you will get to know how to deal with such situation.
These days, auto title loan has become the first priority for many people when they find themselves in terrible financial condition. Even many people in US have used such type of short term loan several times and alleviate their stress. For more ease and comfortable, they prefer to go online and find the best suitable auto title loan service from their home or office comforts.
The loan amount is determined by the lender depending on the value and equity of the car. Only the title of a car is held by the lender while you are free to drive your car during the loan period. When a lender gives money to the borrower, he is assured to get back the loan amount before or on the due date. Borrower too ensures to repay the loan amount at the specified time.
Things you must be aware of when default in paying loan amount
- Loan amount on your car title is less as compared to other conventional loans. It makes borrowers capable of paying it back easily. Also, lenders do not consider credit check that attracts many borrowers to take advantages of such loan. But still many borrowers with worst financial situation always fear the consequences of not to repay the loan on time.
-You have to give high-interest rate to get the needed money within just 24 hours. No doubt, getting funds directly into your bank account resolves your many financial issues. But, have you ever thought what would be the outcome when you do not pay back the loan?
-Lenders have their own set of policies that make it easy for seeking borrowers to choose the one that best fits their needs. There are lenders who design a reasonable payment plan to provide safe, comfortable and easy loan service to their customers. In case if you do not come up with the payment on time, a lender can charge the late fee. If after several warnings from lenders, you still are unable to repay the borrowed money, lender can get hold your car.
-The entire deal can end up with paying high amount as the fee. Sadly, more worst can happen too. You can lose your car forever, which is the ugliest part of borrowing money on the car title. So, if you are thinking of applying for auto title loan, you must be aware of the drawbacks if you will default in paying the loan.