Living in the innovative era, borrowing cash is not a tough task. Moreover, there are different financial options present to help to experience financial freedom. At the time when the individual wants to apply for title loans, the requirement is to own the vehicle with a lien-free title.
Individuals apply for title loans for different reasons. In addition, people apply for title loans to clear medical bills, late school fees, down payment for a new car, home repairs, and vehicle fixes. Title Loans serviced by Champion Cash Loans are the best option if the person has bad credit ratings. Title loans are based on the vehicle’s equity and do not go with your financial record. The ability to repay the taken loan and the documents provided will be checked before providing the amount required.
Most individuals want to know, what happens if you default on a title loan? This is fundamental to know everything about title loans before making any financial decision.
What is a Default?
A default happens when the borrower fails to clear the taken loan according to the payment plans assigned. Moreover, default takes place when you miss a payment, cannot pay the asked interest rates, or do not follow the terms mentioned in the loan agreement. Once the default happens, the lender will reach the borrower to discuss whether the default can be recovered effectively before getting the required financial assistance.
What happens if you default on a title loan?
Title Loans work flexibly and the individual has to submit a lien-free title that will work as collateral. In addition, you should own the vehicle having positive equity. The title loan agreement comes with great benefits and ensures the highest client support. Besides, you can expect flexible payment plans and the lowest interest rates. You won’t have to worry over prepayment penalties and can clear the loan as per your requirements.
If the borrowers default on the title loan, the lender either will add additional fees, or follow the vehicle repossession process. The conditions are mentioned in the title loan contract. In addition, this is why it is necessary to read the agreement before applying for title loans.
What happens if a Car is repossessed?
Considering the circumstance, if the client can manage the leftover payment according to the new guidelines of the lender, they can tackle car repossession. In case, the lender wants to repossess the vehicle then they have to send the notice mentioning the details of the repossessions. The lender will sell the vehicle at auction to cover the outstanding balance of the loan. If the lender gets funds of higher value than the actual title loan amount then lenders must return the additional funds to borrowers who have defaulted on the title loans.
If I cannot afford a title loan-Get a co-signer
Make sure to have a reliable person who can co-sign. If you consider that you require assistance from the person that can pay the loan, you can request different individuals to co-sign if they are unable to clear the loan.
Defaulting on a car title loan- Choose to refinance
If you have a car title loan from other lenders and cannot afford the monthly payments, Champion Cash Loans is there to refinance the pending loan with flexible payment plans.
At the time to refinance the title loan, we will design the title loan with flexible terms and the lowest interest rates. You will get flexible payment plans making it easy to make payments without facing any complications.
What should I do to refinance the title loan?
You must submit the following documents to refinance the pending car title loan:
- Lien-Free title having your name mentioned on it
- Latest Vehicle Images covering all the important details such as VIN, interior, exterior, and rear panel.
- Government-approved ID such as driving license, passport, or any other
- Residential proof such as mortgage bills, utility bills, and tax receipts.
If you cannot repay the taken loan according to the payment plans assigned, it becomes fundamental to allow the lender to know about your situation. By doing this, you won’t only avoid fees or repossession costs, however, you will increment the time to repay it. Being a reputed title loan lender we work with our clients ensuring they won’t face any complications while clearing the loan taken.
