When unexpected expenses arise, many people turn to an auto title loan. This type of loan is secured by a vehicle pink slip or title. The person borrowing money with this type of loan is using their vehicle as proper collateral for the loan.
Lenders will place a lien on the car title while money is lent to the person who owns the vehicle.
The hard copy of the vehicle title is surrendered temporarily.
Once the borrower has repaid the full amount of the loan that they received, the lender removes the lien from the car title, and the lender gives back the hard copy of the car title to the borrower.
A lender cannot possibly lose in this scenario because they can repossess a vehicle if a borrower defaults on the loan. Normally, the lender will not approve a loan that is worth more than the vehicle that the borrower is using as collateral.
What Makes VIP Title Loans the Best Lender?
When it comes to car title loans, VIP Title Loans is easily the best in the industry. Many companies claim to be the cheapest, but VIP Title Loans offers an annual percentage rate of only six percent. Most other companies charge an annual percentage rate of anywhere from 150 to 300 percent.
One of the advantages of getting a car title loan through VIP Title Loans is the fact that payments from borrowers actually go towards the total loan amount. Unlike competitors that put borrower’s payments towards interest only, VIP Title Loans puts borrower’s payments towards the total loan balance, which helps borrowers save money.
When it comes to auto title loans, what really sets VIP Title Loans apart from the rest is how this company handles problems that borrowers might encounter.
An example of this would be a borrower’s vehicle breaking down or getting wrecked. In some cases, after a borrower receives a loan, their vehicle gets wrecked or becomes nonfunctional. Virtually all other companies would simply hold the borrower responsible for the loan and vehicle.
VIP Title Loans gives its customers a special membership that protects borrowers from such a situation.
This program allows borrowers to simply turn their vehicles in and walk away if it becomes wrecked or nonfunctional. VIP Title Loans will remain responsible for the vehicle and loan repayment.
Benefits of Car Title Loans from VIP Title Loans
A pink slip loan is very beneficial for borrowers. This type of loan will yield money when a person needs it the most. Since the amount of a title loan is based on the value of the borrower’s vehicle, a decent sum of money can be obtained.
A car title loan provides quick, easy cash when it’s needed for unexpected bills or expenses.
Technically, the money from such a loan could be used for anything. It’s pretty rare that a person would be using this type of loan for vacation money or a similar luxury, but a borrower could really use the money for anything.