How to Answer Your Friends’ Questions About Your Car Title Loan
A car title loan is a quick and easy way for car or motorcycle owners to get a monetary loan. As long as you are the owner of your vehicle, you are able to use it as collateral for a car title loan. Most people are not experts on car title loans because they have not gone through the loan process before. That’s why we’re going to discuss some of the frequently asked questions about car title loans that you or a friend may have.
How Does a Car Title Loan Work?
First, you must be the owner of your car in order to secure a car title loan. Traditional loans occur with a bank against your credit score. Car title loans, on the other hand, are personal loans secured against the equity of your vehicle. You get to keep and drive your car until the loan is paid off then you once again gain control of its title.
How Much Can I Borrow With a Car Title Loan?
The standard loan for a vehicle starts at $2,510. However, you are able to borrow up to $50,000 against your vehicle, including motorcycles, RVs, and classic cars. You may also be eligible to borrow more than the value of your vehicle.
What Are the Additional Costs of a Car Title Loan?
Sabre Lending offers car title loans with no prepayment penalty and no hidden costs. This means that you can pay your loan off as early as is convenient for you. Sabre offers a simple interest car title loan. This means that interest is only charged on the principal balance of the loan. Other companies may charge compounded interest which is interest on the principal balance and interest on unpaid interest.
How Long Is a Car Title Loan?
Most car title loans offered by Sabre Lending are between 24 and 44 months. You make monthly payments starting 30 days after the loan was secured until the loan is paid off. Sabre works with customers to develop a loan repayment schedule that is sufficient for both parties.
What Documents Are Required to Secure a Car Title Loan?
The most basic documents you need for a car title loan are your car’s title and your driver’s license. Additionally, you’ll need to provide proof of employment, residence, and insurance. Finally, you must provide five references in order to be approved for a car title loan. Please note other documents may be required but are not standard for every car title loan.
Car title loans are a simple and easy option if you are in need of money quickly. Sabre Lending works with customers to ensure they are able to repay loans back in a timely manner. If you are interested in a car title loan, contact us today!