Title loans in Maryland are developed for those who need money fast to deal with their financial problems, to cope with emergency needs, or pay bills.
For fully paid car owners or in the last few months of completing the payment, the steps of applying for easy title loans Maryland MD are simple. But, you still need to pay higher fees, and for worst cases, you might lose your car. Below are things you need to know before you decide to go for the best title loans in Maryland MD.
To apply for a title loan using your car as collateral, make sure that you have equity in it or repay it completely.
Title loans in Maryland MD and mortgage loans are asecured loantype that use your car or house as collateral. They usually range from $100 to $5,500-the amount is equivalent to 25% up to 50% of the total value of your car. Although it is known as an auto title loan, it is open to any type of vehicle, like motorcycles and trucks.
It was mentioned earlier that you need to own the car completely, meaning you have paid the full balance without any liens or the equity in your automobile.
Maryland car title loansare also called title pledges, title pawns, or pinkslip loans. The latter has got its name because the paper used in car titles in California was once printed pink. Aside from your car title, the lending firm would want to check on your collateral, proof of insurance, and a photo ID.
The creditor will get hold of your car title during the duration of the loan term. After you have paid off the borrowing, they will give it back.
It is not common in an auto title loan to charge the borrower 25% of the capital amount per month to provide the money you need. For instance, if you get a car title loan for $1,000 payable for 30 days, and the added fee is 25% of the amount equivalent to $250, the total sum to repay is $1250 plus the added charges.
It is equal to an annual percentage rate or APR of over 300%. That is much higher as compared to other types of loans. The lender should inform you about the APR and the overall cost. Once you have the data, compare it with other lending organizations to help you decide whohas the most beneficial terms.
You Could Lose Your CarIf You Failed to Repay the Loan on Time
If you avail of an auto title loan and you were not able to repay the total amount on time (along with the fees), the lender could allow you to roll over the loan. If you do this, more charges will be added, as well as interest.
The loan agreement usually runs only for 15 to 30 days
For example, you borrow $500, and the fee is $125.You failed to pay the total amount at the end of the 30-day term. You can pay the $125 interest and roll over the remaining $500 into a new credit with another interest. The total sum you need to pay will amount to $250 interest fee and $500 the principal loan. If you continue to default your payment, you could end up paying higher penalties, which makes it impossible for you to pay off the amount you initially borrowed.
If you think you are in a debt trap, and it is hard for you to satisfy your loan, the lender has no other choice but to repossess your vehicle. Plus, they might subject you on paying more fees to get the car back to compensate for the past-due amount. Let’s say you cannot find ways to pay the fees and the principal amount. Then you need to accept the fact that you will lose your vehicle.