A title loan is a type of loan in which the borrower puts up the title on his or her car as the collateral. They are typically loans with shorter terms and high interest rates, as they are based on nothing but the overall value of the vehicle in question. Credit is not an issue, but this is reflected in the high interest rate.
How Title Loans Work
Title loans are secured against a car, meaning that credit is unnecessary. Lenders usually offer up to 50% of the car’s value in the loan. Because of the simplicity of the loan arrangement, these documents can often be drawn up in under half an hour, for as small a principal as $100.
The interest rate is usually very high, often anywhere from 36% to over 500%, depending on the state and the nature of the loan. If the loan is not paid back quickly, the borrower could be left with a sizeable debt.
If you or someone you love has been unable to pay back his or her loans, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC may be able to help you get the debt relief you need. To learn more about what we may be able to do for you, please contact us today by calling 414-377-0518.