Title Loans Arlington, Virginia
Everyone encounters unexpected events at one point in life. The outcome of such events depends on how well you are prepared to deal with them. Some people use the money from their emergency fund while others resort to loans. One loan that has helped people in such scenarios is title loan.
A title loan is a form of credit that requires an asset as collateral. The loan is popular in Arlington and its surroundings because it does not consider the borrower’s credit history when evaluating qualifications. This means that even those with bad credit histories can apply for the loan. A title loan can also be approved quickly, making it a perfect option for financial emergencies. A car title loan is the most common form of title loans in Arlington. In a car title loan, the borrower uses the car as collateral. He must own the car outright and be willing to sign the title over to the lender. A typical car title loan does not exceed 25 percent of the car’s total value. Most loan amounts do not go beyond $5,000. The borrower can either repay the loan in one month or pay in installments for an extended period. The lender has the right to gain ownership of the vehicle in case the borrower fails to repay the loan.
How to Apply for Title Loans Arlington
A borrower can either walk to the lender’s premises or apply for a title loan online. Applying online is more convenient and saves a lot of time. To apply online, you have to fill out a form. You will be required to provide the details of your vehicle, such as the registration number, year of manufacture, mileage and model. You will also be required to fill out your phone numbers, home address and zip code. Once you are through, you will be provided with a free loan estimate. The company will then send a representative to view the car at your convenience.
Legal Requirements for Title Loans Arlington
There are a set of rules that provide guidelines on how people can apply and offer title loans in Virginia. These set of rules are applicable to title loans in Arlington since the county is located in this state. The title loan requirements include the following;
• A title loan lender should provide his clients with a notice regarding the interest rates and repossession terms.
• No one should take a loan with a vehicle that has an existing lien.
• Every title used as collateral must be recorded with the Virginia Department of Motor Vehicles.
• A lender cannot loan more than 50 percent of the total value of the car.
• The repayment period should not be less than 120 days or more than 12 months.
• The auto title loan interest rates should not exceed 22 percent of the principal amount.
Benefits of Car Title Loans
The increasing popularity of title loans in Washington DC and Arlington is due to the immense benefits associated with them. These loans enable people to get quick cash during emergencies. Typical car title loans in Washington DC take minutes to hours to mature. Not to mention, the process of applying for the loans is far much easier than any other form of credit. You only need to provide the title of the car and fill a single form to get the loan. Your credit history does not matter in a car title loan. The loans are based on the vehicle as collateral, so it is much easier to secure. Title loans are also popular because you can still use your car the way you want while you repay.