Getting a loan for title is the process of pledging an asset in exchange for a loan. You should use the loan for title program only if you have no other options. Let’s review what happens when you use a loan for title arrangement.
Loan for Title Basics
When you use a loan for title program, you get a small loan by pledging title to something as collateral. In many cases, you use your car in a loan for title program. For details on those arrangements, see below:
Loan for Title Risks
The main risk in a loan for title program is that you’ll lose the asset you pledged. Imagine what would happen if you lost your car. Would you be able to get to work and earn an income? Would you be able to drive to job interviews and get back on your feet?
Costs of Loan for Title Arrangements
Aside from the risks, you generally pay a lot for a loan for title arrangement. You’ll pay interest on the loan, as well as fixed fees for setting up the loan. Since lenders tend to keep loan for title amounts relatively small, you end up paying a high percentage rate for your loan.
Loan for Title Alternatives
Before you use a loan for title program, investigate all the alternatives. You may be able to borrow elsewhere with less risk and lower costs. See below for some ideas:
Varieties of Loan for Title Programs
Loan for title programs go by a variety of names: