A motorcycle title loan is designed to let a motorcycle owner get fast cash when he or she needs it! With this form of borrowing, you’ll receive cash in exchange for the title to your motorbike. After loan approval, depending on the state you live in, it’s sometimes possible to get some money within an hour. All in all, using your motorcycle title is a fast way to get money when you have no other options.
One of the common concerns about a vehicle equity loan is that you may have to give up your vehicle or sell your car to get a loan. That’s not the case with most car title loans and it’s not the case with motorcycle title loans either. With many of the largest online lenders, you won’t need to sell your motorcycle to get money. When you go with this online loan, you’ll receive cash and the lender will become a lien-holder on your motorbike. You will get the title back once you repay the full amount borrowed according to pre-determined loan terms and conditions. As you can see, the title to your motorcycle functions as collateral for a loan. This loan offers both financial parties different benefits.
In most cases, with a secured loan, the finance company knows they will repossess your bike in the case of default. If you don’t pay your loan off as you should, the pink slip will stay with the lender and you will need to work with them to set up alternative payments. Be confident you can make timely payments until the loan is fully paid off. There may also be processing fees for this form of loan, as well as the usual interest charges and you may need to get an updated copy of your motorcycle title(pink slip). The rates won’t be as high as we see with payday loans or cash advances. But they’re still high, and it’s best to borrow a small amount and pay it back quickly.
You’ll need to sign some papers to close a title loan after your application is approved. This will also include handing over the pink slip for your bike. Some companies will even help you if you can’t find the original pink slip or other documents. Another benefit of a motorcycle title loan is that you will borrow less money. Compare this to what you would borrow with most car title loans. For example, most loans are for anywhere from $5000 and up. Motorcycle collateral loans are issued at anywhere from $2,000 to $6,000. This is attributed to the fact that motorcycles are worth much less than most vehicles. The benefit of this is that you will have less paperwork and less lender scrutiny because you are borrowing less money. The process with a bike title loan is usually quicker and easier when compared to getting a title loan.
After securing final approval for the loan on your bike, you should be able to get your money almost immediately. The amount you receive will be scaled to the value of your motorcycle, usually around 40-60% of the bike’s value. When shopping around comparison quotes on a loan like this, we recommend that you seek out the lowest interest rates you can find. Be sure to apply only through companies with strong and positive reputations.
Many of the largest and most reputable motorcycle lenders also provide title loans with no job and vehicle registration loans. You will want to look for a vehicle title loan company that offers title loans online. Make sure they have a good reputation with decent online reviews. Like most financial companies, it’s easy to check out direct title lenders online. A borrower can go to the BBB website and see how different companies measure up. Be sure to look for other relevant feedback online about reviews and loan terms. Once you have a shortlist of reputable lenders, look and see if they offer the interest rates and loan terms that you want.
Applying for motorcycle title loans online is the same as applying for a secured title loan. You would do the same with a payday loan lender or installment loan company. Check if your lender is licensed to provide equity loans in your state. This is often overlooked but is the most critical factor when looking for a short term loan. It sounds simple and prospective borrowers often ignore this factor. But you have a zero percent chance of getting an advance if your lender doesn’t fund title loans in your state! Now that you know the basics of bike title loans, we hope you feel more comfortable in your online search for a lender! Why not apply for a car title loan today?