A car title loan can seem like a fast, convenient, and easy way to get necessary funding in a hurry for Florida residents. However, there may still be some questions surrounding them, such as what a lienholder is.
Fortunately, the answer is actually pretty simple and easy to understand. Title loans serviced by LoanMart would like to help inform you of what a lienholder is.
What is a Car Title Loan?
First, let’s talk about what a car title loan is. A car title loan is essentially a type of loan that allows you to use the title of your vehicle to acquire funding. Use the funds you need for whatever bill or expense you might be faced with at the current moment.
The amount of money that you may qualify for if you are given approval is often based on two different factors:
- The equity that your vehicle has
- Your ability to pay back a title loan
If you are approved for the loan, then the title loan lender will sign onto your vehicle’s title with a lien. They will be the lienholder for the duration of the title loan. Once you have finished paying the loan back, you will be given full ownership over the title once again.
What is a Lien for a Car Title Loan?
A lien is a legally held right that a lender has over a property being used as a form of collateral for a loan by the person(s) borrowing the money.
This kind of legal right could include the ability to take possession of the property being used for collateral. This would only occur if the borrower defaults on the loan or makes any form of breach on the loan agreement.
What is a Lien Holder on a Car Title Loan?
A lienholder is someone who holds the legal right to the property being used as collateral during the course of a loan. In this instance, it is the lender who is the lien holder.
Once the loan has been paid back in its entirety, the lender will remove their lien from the property and return full ownership back to the borrower.
In the case of a car title loan, the collateral in question would be the title of the vehicle. The lender would put a lien on the vehicle’s title and have that hold over it until the title loan has been fully repaid.
Get the Funds You Need with a Title Loan in St. Petersburg, Florida!
If you are a resident of Florida and are in need of extra funding to take care of an unforeseen bill or expense, then a title loan serviced by LoanMart could be just the thing that you need!
Title loans serviced by LoanMart are not like other title loans, though. There are multiple things that make them stand head and shoulders above a great amount of the competition out there.
Get Moving Toward Financial Peace of Mind with Title Loans in Florida!
Getting started toward the financial peace of mind that you deserve is as easy as can be. By filling out the quick online form, you could receive the money you need in the space of only a single business day1! The earlier you apply, the better, so do not delay! Choose title loans serviced by LoanMart today and start living the good life you deserve once again!