Title Loans Roy, Utah
When you are in a financial trouble, you will look for various means to get out of the situation. One effective way you can find relief is by applying for a title loan in Ogden UT.
A title loan is a form of debt financing where the borrower provides one of his assets as a security in exchange for a given loan amount. The most common asset used for title loans is a vehicle. In this case, the borrower provides the title of the vehicle to the lender in exchange for the loan. The lender keeps the title until the borrower repays the loan in full. If the borrower defaults and refuses to repay the loan completely, the lender sells the vehicle to recover the amount loaned out.
Title loans take a shorter time to mature when compared to other forms of debt financing. Most title lenders process and release funds minutes to hours after the borrower makes an application. The repayment duration usually does not exceed 30 days, except when the borrower asks for an extension. The maximum amount the borrower can get does not exceed 25 percent of the total value of the vehicle provided as collateral.
How to Apply for Title Loans Roy
Given the convenience provided by the internet, most lenders now require borrowers to apply for a title loan online. You simply fill a form on the lender’s website. The form should contain your full names, cellphone number, home address, zip code and driver’s license number. It must also contain the details of the vehicle, such as the year of manufacture, make, model, mileage and registration number. Note, you have to be the outright owner of the vehicle.
Once you fill out and submit the form, you will be provided with a title loan estimate. The lender will then send one of their agents to your premises at your own convenience.
Regulations Governing Title Loans Roy
There are certain rules and laws put in place by the Utah Department of Financial Institutions to help control title loans in Roy and other regions within the state. According to the laws, every title lender must register with the department and post the interest and fees charged in conformity with the Truth in Lending Act. Lenders must provide a detailed written contract to the borrower highlighting the terms of the loans and any hidden charges. Borrowers must be the outright owners of the vehicles provided as collateral and be residents of Utah for a period not less than three years.
Benefits of Title Loans
Many people prefer title loans Roy because of the numerous benefits they offer. They offer a quick and easy alternative for cash. Once you fill out the application form, you can receive cash the same day. Title loans do not consider someone’s credit history because they are highly secured with a title. You can get a loan even if you have a bad credit report.
Unlike payday loans, title loans are way much cheaper. This is because the vehicle used as collateral provides an additional layer of protection, so lenders do not have to charge high-interest rates to spread risks. In addition, you can still use your vehicle while servicing the loan. The lender takes possession of the title, not the vehicle itself.
What Happens if You Are Unable to Repay a Title Loan in Time?
Do not panic if you realize you can’t repay the loan as agreed. Most lenders will roll over the loan for another 30 days. In simpler terms, they will let you borrow the same amount for another 30 days, giving you enough time to repay the loan.