Tennessee Car Title Loans
There are many reasons as to why people would want to look for Tennessee title loans. Before we get into the reasons as to why this may be the right type of loan for you, we are going to talk a little bit about what they are, as well as answer a few key questions people may have about this type of loan.
What are title loans?
Title loans are a type of collateral loan. When you take out a loan, you will be handing over the title to your vehicle. If you pay back your loan on time, then nothing happens. If you fail to pay your loan back on time, then the title will revert to the lender and you will lose your vehicle.
Generally speaking, you can have a title loan issued against any vehicle which has a title. This normally means if you have a car, but some people will also be able to obtain a title loan against their boat (this is not something which all companies in Tennessee will offer)
Can you still use your vehicle?
You can. You will not be physically handing over your vehicle when you take out Tennessee title loans. The only time that will happen is if you fail to pay your loan back on time. This means that you do not need to worry at all. You will always have access to your vehicle for the duration of your loan. This means that you can keep getting into work and earning money.
How much can you borrow in Tennessee?
This is going to be dependent on the company that you have opted to work with. It will also be dependent on the value of your vehicle.
Despite what some people may think, you will not be able to obtain a title loan for the full second-hand value of your vehicle. This is because if you fail to pay your loan back on time, the company does need to make a profit. They aren’t in the business of handing out Tennessee title loans out of the goodness of their heart, after all. This means that you should expect a fraction of the value of your vehicle. The lender will do their best to give you whatever you need to borrow, but if it does not make business sense for them to do that, then they will probably give it a skip.
In addition to this, the lender will also impact the amount you are lent under your title loan. While the difference between them will not be drastic, companies offering Tennessee title loans will vary a little from lender to lender. This is why you should shop around, preferably online, if you want to score yourself the best possible deal.
What do you need when you obtain a title loan?
Surprisingly, not a whole lot. As you can probably guess; at the minimum, you will need to show that you have the title to your vehicle. After that, you will also need to give your identification. Other than that, there is not a lot that is required in Tennessee. The lender may ask for more information, but that is it. You will be unlikely to need to submit bank details (unless you are taking the loan out online). When you are obtaining a title loan, make sure that you have several pieces of ID handy! For more information on this check out our page with the required documents and qualifications.
Who are title loans for?
Title loans are for those who are unable to obtain a loan through traditional lenders. There will be no credit checks carried out if you take out a title loan. However; do remember that this means that if you do pay your loan back on time, your credit rating will not change. There is no need for a credit check as a lot of the risk of lending to you will have been alleviated by the lender having the title to your vehicle as collateral.
It is worth noting that there is still going to be a little bit of risk on the part of the lender. This means that you will need to pay slightly higher interest rates than if you went through a traditional lender. However, because there is collateral on the line, the interest rates are not going to be anywhere near the amount that a payday loan would have.
It is only going to be the right type of loan for you if you are looking for something a little bit more ‘short term’ when you are borrowing. These loans need to be paid back quickly. At the most; you are going to have a month or two to pay back your Tennessee title loans.
What happens if you do not pay back the loan?
If you fail to pay back your loan on time, then the company will take possession of your vehicle and they will be able to sell it on at whatever price they wish. While if you are a day or so late, you can give the lender a call to see if they will extend the loan for you, them agreeing is going to be incredibly rare, although it is always worth a shot.
They will come to your property and collect your vehicle when the loan has expired and has not been paid back to them.
Top Companies in Tennessee
Generally speaking, you should always look for your Tennessee title loans online. If you can do that, then you will be sure that you are always getting the best possible price on the loan. After all, there are so many companies striving for your business, they are going to be competing tightly to ensure that they get the best possible chance of gaining you as a customer. If you shop online, then it means that you are going to be able to easily compare the prices for the loans. This, once again, ensures the best possible outcome for you.