Title Loans in Commerce, Texas
There are several myths and misconceptions surrounding title loans McKinney and other areas in Texas. These misconceptions and untrue allegations has made many people fear title loans for no reason, inlcuding when they have a financial emergency. This post will shed more light on title loans and how they can help you acquire quick cash for an emergency.
How Title Loans in Commerce Work
In a title loan, you provide one of your assets as collateral for a given loan amount. The lender gains possession of the asset until you repay the amount loaned out in full. In case you fail to repay the loan as required, the lender reserves the rights to take possession of the asset provided and use it to recover the amount. If you repay the loan as agreed, the lender will transfer the possession of the asset back to you.
The most common type of title loan is a car title loan. In car title loan help, you provide the title of your vehicle as collateral. The lender retains possession of the title of the vehicle until you repay the loan in full. Car title loans have a 30-day repayment period, except in a case where you request for an extension of the term.
How to Apply for Title Loans in Commerce
You don't have to walk to a title loan company's offices to apply for a title loan when you could do this online. Applying online is more convenient and saves a lot of time and money. When applying online, you will be asked to select the year of manufacture of your vehicle, its model, style and mileage. You will also be asked to provide your full names, phone number, email address and zip code. Once you submit your application, you will be given a loan estimate. The company will also send one of its agents to your residence to view the vehicle. The agent will examine the title of the vehicle and run a search to determine whether you are the actual owner. He will also check to see if the vehicle is actually worth the estimate generated online.
Benefits of Title Loans
There are several advantages of securing title loans in Commerce. One advantage is that title loans are very convenient. There is no need to queue for long periods waiting to be served. Just submit your application online, and the loan will be ready within a few hours. Title loans have low interests when compared to payday loans. This is largely because they are highly secured. Unlike conventional loans, you can apply for a title loan even if you have a bad credit history. Also, the 30-day repayment period is very suitable for someone who does not want to stay in debt for long.
Regulations Governing Title Loans
The laws governing title loans in Commerce are made by the Finance Commission of Texas. According to the laws, everyone who wants to become a title loan lender must first obtain a valid operating license from the authority. The main aim of this regulation is to protect borrowers from being exploited by lenders and ensure lenders adhere to the codes of practice.
A lender can repossess a vehicle if the borrower is just late with the payments. A lender does not have to notify any legal institution whenever they want to repossess a vehicle provided as collateral from a borrower. Also, the lender does not have to return any surplus after the sale of the vehicle. Borrowers are encouraged to work with lenders who have valid operating licenses and understand title loan repossession guidelines.