How do car title loans work?
Car owners can use title loans as an opportunity to borrow a loan using the value of their vehicle. The car serves as collateral for the loan since the loan isn’t based on your credit. Title loans are a great option for people who need fast cash but might have a poor financial history. It is also a great way for these people to build their credit. If your vehicle has enough value, you will get a loan up to that amount.
When you get a title loan, you will transfer the vehicle’s title under the lender’s name. When the loan is paid off, the title will be transferred back to you. If you are unable to pay off the loan and default, the car will stay under the lender’s name until the loan is paid-in-full.