Title Loans in Union City, NJ
Many people in Union City face financial emergencies such as unexpected medical bills, the death of loved ones or home repair costs. These emergencies can ruin your life if you don’t have the cash to address them immediately. Securing a title loan is one of the most convenient ways to get quick cash in case of any emergency.
How a Title Loan Works
For one to secure a title loan, he must sign over one or two of his assets to the lender as collateral. The lender then evaluates the asset provided and disburses the loan based on its total value. The loan amount usually does not exceed 25 percent of the total value of the asset. Many people in Union City prefer to use their vehicles as collateral. In this case, the lending companies loan against car title.
The lender retains the title throughout the repayment period and has the right to repossess the vehicle in case the borrower fails to repay the loan as agreed. The lender does not obtain full ownership of the vehicle, meaning the borrower can still use it for his own errands. The repayment period usually does not exceed 30 days.
How to Apply for a Car Title Loan
There are two main ways to apply for a car title loan in Union City. You can either visit the lending company’s offices or apply online via their website. When applying online, you will be asked to fill out a form. The form must contain all the details of the car, such as its registration number, year of manufacture, model and mileage. You must also fill out your personal information.
This includes your full names, home address and phone number. Once you complete the form, you will get a free car loan estimate. The lending company will also send one of their agents to evaluate the car and advise you accordingly. This process normally does not take more than one day.
Laws Governing Title Loans in Union City
Title loans in Union City are regulated by the New Jersey Department of Finance. These laws are designed to protect the borrowers from unscrupulous dealers who exploit them. According to the laws, no lending agency should charge more than 30 percent interests on the loans they provide. This includes payday loans and title loans. The laws also require those who want to start lending businesses to obtain a valid license from the relevant authorities.
Anyone who wants to borrow should not have an ongoing bankruptcy case or plan to file for bankruptcy when applying for a title loan. He must be 21 years or more and have a valid driving license. He must also be able to show proof of income. However, proof of income is not mandatory when determining if you qualify for a title loan.
The Importance of Union City Title Loans
Title loans are among the most convenient forms of debt financing not only in Union City but all over New Jersey. For instance, securing Jersey City title loans requires only online application. You don’t have to print or photocopy anything to get a loan. Lending companies do not take into consideration the credit score of a borrower during application. They only require you to prove that you are the outright owner of the vehicle provided as collateral.
Another advantage of title loans in Union City is they take shorter periods to mature when compared to other forms of financing. You can get your money between two and 24 hours, depending on how you corporate with the company’s representatives. This makes the loan a perfect alternative during financial emergencies.
