Oct
28
The borrower provides their car as collateral in case of title loan. The lender may take possession of the car if the borrower defaults which makes the loan less risky for the lender and may permit the borrower to obtain a lower interest rate than they could get on an unsecured loan.
Title loans carry high interest rates and are typically for short- term period. Subprime borrowers use this loan with few alternatives. For verifying the borrowers many lenders verify either the borrower is employed or not or either he has some other source of regular income. The borrower’s credit scores are not considered by this type of loan. Interest rate range from 36% to as high as 300% depending
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