If you are interested in car title loans in Chapel Hill NC, then you probably have a lot of questions about what these loans are and how they work. In the most basic sense, these loans, sometimes referred to as online title loans, are short-term loans, typically given in relatively small amounts, that use the borrower’s vehicle title as collateral on the loan.
When people apply for these loans, there is typically no inquiry into their credit history since the only considerations used for determining eligibility are whether or not the borrower has a lien free vehicle title and a regular source of income.
Borrowers who meet that basic criteria typically qualify for a loan of some amount, though the amount will vary based on the value of the vehicle and the income level of the borrower. With that said, though, there are a lot of really nice benefits to these loans including:
- They offer access to loan funds quickly, often as soon as the same day the loan is applied for!
- The borrower retains use of his vehicle while the loan is being paid off
- Loan extensions can be given if the borrower needs more time to pay his or her loan
- Making title loan payments as agreed upon will lead to an improved credit score
The decision to enter into a title loan agreement, even when you consider all the potential benefits, can be somewhat scary. For that reason, you may wish to seek legal advice and counsel before entering into your agreement. It’s never a bad idea to have a lawyer look over the loan agreement for you before you sign it, and, fortunately, there are many great lawyers in the Chapel Hill area.
There are also many good lawyers whom you can contact if you feel that your rights as a borrower have been violated in some way. This shouldn’t happen to you if you choose your lender carefully, but, just in case something goes wrong, this link offers a list of Chapel Hill lawyers who can help with consumer protection issues.
Know Your Rights
As a borrower, you do have many rights under North Carolina state law. Furthermore, lenders must abide by the law as well. Some of the details of North Carolina law as it relates to title loans can be found on this helpful site.
By understanding your rights, as well as the responsibilities of lenders in North Carolina, before entering into a loan agreement, you can protect yourself more fully and ensure that your title loan experience is a good one.
If you feel that a title loan sounds like a good fit for you, then your next step is simply to find a good lender in your area or online. Do your research to find a lender that is fair, operates legally, and offers competitive interest rates. The more time and effort you put into finding the right lender, the better your chances of having a positive, helpful title loan experience.