Car Title Loans – Beneficial For Borrowers
Ohio residents can avail of title loans to cover up the costs in terms of foreclosure or a short sale of properties. The Ohio Department of Insurance offers the borrowers a chance to borrow money against the title of their homes in times of need. This is done to avoid the burden of heavy homeowner dues. It is also offered as an easy way of raising quick cash in times of emergency, when lenders are having tough time of getting their loans approved.
Lenders are making it easy for home buyers and real estate investors by offering title loans. Such loans require the borrowers to put up the car value as collateral. If the borrower defaults on the loan payment, the lender has the option of auctioning the car value or selling it to recoup the lent amount. If you are planning to avail title loans from lenders in Ohio, you must keep certain things in mind to avail affordable deals.
You should shop around to avail the lowest interest rates and loan amounts. Since there is fierce competition among lenders for obtaining title loans, the interest rates and loan amounts offered will differ. Check out for online quotes to have a better idea of the market rate. You can also get competitive quotes from your friends and relatives who have already borrowed from the same lender.
In terms of car values, the market value of the car will be appraised before the title loans are granted. If the appraisal gives a higher figure for the car value, the loan amount that the lender is to lend you will be higher. The lending company may also ask you to pay for the administrative cost involved in approving your loan. This may account for the slight difference in the interest rates.
There are two types of title loans in Ohio, namely, home-equity loans and pawn loans. A home-equity loan refers to a type of title loan in which you use the equity in your house as collateral. Most homeowners apply for this type of loans when they are buying a new house or renovating an old house to make it more profitable. In this case, the lender is allowed to take possession of the equity in your house even if you have already sold the property.
Some borrowers apply for auto title loans in Ohio to raise finance for major car repairs. Auto title loans can either be secured or unsecured. If the borrower pledges the security, he gets a lower interest rate and the amount to be lent are bigger. On the other hand, if the borrower doesn’t offer any collateral, unsecured auto title loans have smaller interest rates and smaller loan amounts. These types of title loans are particularly useful for borrowers who have poor credit score and have a bad credit history.
One of the biggest advantages of the auto title loans in Ohio is that there is no collateral needed for the loan. The lenders can claim the vehicle as the security against the loan. In case the borrower fails to repay the loan, the lender has no other recourse but to auction the vehicle at an Auction Car Exchange. This makes it easier for the lender to recover the amount.
The demand for title loans in Ohio is very high, as many residents are opting for these loans to raise finance for major expenditure. According to experts, some borrowers may not be aware of the fact that they do not need to produce any kind of collateral in order to apply for title loans. They may be taking the risk unnecessarily. Even though many borrowers benefit from the policies of the lenders, it is not recommended for all. It is better to check all the details about these policies before going for a car title loan from an unknown lender.