Logbook loans also known by the name of title registration loans are loans protected on your own vehicle, thus the moneylender owns your car until you pay back the complete loan amount. Even, you can use your vehicle as long as you pay back the loan amount. Though, these loans are risky and expensive and you must stay away from them if you can.
How these loans work?
Title registration loans in Phoenix is easily available on the internet and on high street. You can without any difficulty get the loan amount between $200 and $20,000, as per on how much worth of your vehicle. Even though some companies will just lend up to 50% of your vehicle’s value. Whenever you take this loan, usually you will be requested to hand over logbook/title of your vehicle or all the registration documents of your vehicle.
These are the papers that confirm you are the registered owner of the vehicle. But though you o not, still you are handing over control of the vehicle until the loan amount is paid back. Today, if you are in financial trouble, and have bad credit rating then title registration loan is the only way that can help. With this type of loan, you no need to have any credit check. If you have clear vehicle title then you can easily get loan.
With this loan, even to signing a credit contract, there will be another form known as ‘bill of sale’. It means the moneylender now provisionally has your car but still you are capable to utilize it so long as you effectively meet all loan repayments.
The rule just recognises a sale’s bill in case the moneylender registers it with the Court. In case it is not registered, the moneylender must get an approval of court to recover your vehicle. You can also check in case a sale bill is registered by making a written note to the courts. Normally, there is a fee to shell out
How you can get your loan?
- Most of the companies now use electronic payment systems to transfer the loan amount into your bank account.
- There are some loan providing companies that offer a quick service, but they could charge fees of approximately 4% of the loan amount for this.
Loan Repayments
- Most of the title registration loans run equal to 78 weeks, though by rule you are entitled to pay it off soon in case you have available funds.
- With some contracts, you could just be paying back the interest amount until the contract of last month.
- At last, you will be predictable to pay back the amount you borrowed originally.
- You should confirm that you know how the contract works and that you can pay back the loan amount.
Things to remember when taking title registration loan
- The APR may be high, thus it is good to pay it off as fast as possible.
- There could be additional charges on early repayment in case you pay back more than $9,000 in the period of 12-months.
