When you think about getting money really quickly for whatever need, you can use car title loan to enable you get it. This is a loan that requires your vehicle as collateral and it can be gotten from a few caring sources. You might not have so many options when you need to borrow money; car title loan can be your most likely option. Whatever emergency you might have, even when it is settling debts, family emergency or car repairs, there might not be more than one or two people you can turn to for help. This could be worse if you don’t have a job or if you are self-employed with no credit history or a bad one. Car title loan can bail you out when you have quick need for cash to sort out yourself and prevent you from making the wrong decisions or depending on the kind of people who would let you down.
Lenders can provide help to anyone who requires it urgently via car title loan whether the borrower has bad credit or not. The borrower puts up the title of the car as collateral for the loan. Once payment is not made as at when due, the lender is entitled to the title and the car. Car title loan also known as pink slip loans is similar to pawning an item with the difference being that the lender allows you in this case to keep your car while you make the payments while pawn brokers hold on to their collateral till payment is made. It is worthy of note that car title loan lenders charge high interest rates than financial institutions would simply because the borrower might have a bad credit score or none at all and therefore, becomes a high risk for the lender.
However, when compared with the exorbitant rates charged on unsecured loans, it becomes obvious that these rates are lower. Loan can be given you from 25% to 50% your car value’s worth as loan as long as you have a clear title to use as collateral. If you are able to use a car title loan wisely, it not only bails you out but helps you improve your credit score as well. You could also use it to offset debts like pending mortgage payments or other unsecured debts that could negatively affect your credit score. Making payments on time and according to terms and conditions stipulated in the agreement between the lender and borrower will reflect nicely on your credit score.
A car title loan could be an emergency cash option giving a quick and convenient alternative for such urgent situations provided it is your plan to use the loan responsibly and repay it as at when due. Reading the loan agreement carefully and clarifying terms that are exactly clear to you is quite important as well as checking out the payment schedule to see if it works for you. Depending on the lender, you could be required to pay high subprime interest rates and this may leave you swarmed with rigid repayment terms, multiple charges and harsh penalties for failure to make payments when due.
Getting a car title loan near you is about the easiest thing to do and does not take more than a few minutes when you apply online or a few hours maximum at a physical store. Majorly, you could be walking away; cash in hand in a few hours provided you are able to provide every document required by the lender. It is up to you to search out a suitable lender who has a flexible repayment term, no penalties whatsoever, competitive interest rates and confidentiality when compared with other lenders in the industry.
There are certain questions you should want to ask when applying when applying for a loan which could help you choose the right lender to provide you this financial help. The first question you should be asking should be about the requirements for the loan. To get a car title loan, all that is basically needed is the title for your car. You must understand that you need to provide a proof of ownership or means of identification that the car in question is yours. The title serves as collateral for the loan while you are allowed to drive your car while you work on making payments to offset the loan. You do not have to sell your car or give it up while you pay back.
You should also seek to know if bad credit is accepted. If you do not have a good credit history, getting financial assistance from financial institutions may be a problem but with car title loans, that is hardly a problem. It does not matter what your credit history looks like, it doesn’t determine the approval of your loan. As has been reiterated, make sure to understand the terms and conditions of the loan to help you avoid losing your title to the lender or paying so much than what the original debt was altogether.
You need to consider your options. Firstly, do you have a steady income from a job or government assistance or some other means? What are your financial options? Cash advances, help from family and friends, traditional loans, credit card, payday loans, unsecure subprime loans or title loans. You have to evaluate your options and seek the one with a better interest rate and payment option.
You also need to have a very good repayment plan. Although some lenders might not ask for a proof of employment or quiz you on how you plan to pay back when approving your loan but it is seemingly important you have a sure means of paying back by having a solid payment plan before you sign off on any document. You do not have to wait for time to run out to pay. It is far better you pay on time, earlier if possible so as to avoid a late payment penalty. Paying more than the minimum payment per time might be tasking but it would also help you offset the debt fast. It is better to choose a company that does not charge a repayment penalty so you can save on interest charges by making payment on the loan before it is due.
Once you pay off the loan fast, the interest doesn’t become much and the borrower pays less. Some arrangements are based on interests’ alone monthly payment but it is better to make payments every month to avoid a massive payment at the end of the day or face the possibility of losing your car title and consequently, your car. This kind of loan can take you down fast. If you fall into the category of those who can’t seem to remember when to pay their bills or have a hard time doing it altogether then you should opt for direct debit from your bank account or post-paid checks. Failure to make payments on time could make you lose your title and give room for the lender to repossess and sell your vehicle to recover the debt.
Mostly, people with bad credit are the ones who opt for car title loan. Lenders would majorly check the borrower’s credit before giving out any funds but bad credit in itself is not majorly a caution for lenders as the debt is secured by auto equity. Qualifying for a car title loan requires that the borrower must own the car he plans to use as collateral and the car must be paid off or nearly paid off. The proof of ownership and repayment of the previous loan must be shown to the lender to enable the borrower qualify. They may also consider if you are employed or what your source of income is- whether a job or self-employed.
Before applying for an auto equity loan, you should know how much your car is worth. You should at least have an estimate of the net worth of your car after whatever time of use. There are resource materials and online means to do this and significantly, The Kelley Blue Book (KBB) is a popular one to help determine your car’s value. This particular research tool helps you identify your car’s model and years of production as well as all other options that will help you arrive at the car’s value. The trade-in value will be the one that guides you more when approaching a lender, he will use this information to determine how much he will be parting with as what he can afford to lend you. If you are able to know your car’s worth beforehand, helps you maximize the loan properly as you can borrow the most amount possible on your car equity.
Title loans are called secured loans because no matter what, the lender is at no risk of losing his money. If the borrower fails to meet up with the agreed terms and deadline elapses, he would repossess the car and sell it to cover the debt. Nonetheless, as lenders mostly report to the three credit bureaus, the borrower’s bad credit could get worse when he defaults on loans. It has therefore been recommended by the Consumer groups that the borrower is careful when making use of title loan to improve his credit.
Applying for a title loan is good but you must ensure that you have plans to use the funds wisely and arrangements to pay back the loan as at when due. Making payments on time and as at when due can reflect favorably on your credit report and help you enhance a low FICO score. Often times, the reason subprime borrowers take title loans is so they can improve on their credit score and by applying for title loan online say in places like California, Oregon, New Mexico and Arizona, they can get the cash they need with ease. This would mean that they would have to input all their information for documentation and approval on the website of the lender. For this reason, approval can be almost instantly in many cases.
TFC title loan has a very user-friendly website that allows loan formalities to be completed almost as quickly as it started. Most of the information are assessable but, in a case, where you might have doubts or one or two things aren’t clear then the loan officer or loan processor can be assessed by phone or e-mail, day or night to make sure things are sorted out as soon as possible. You would be surprised to see how fast you have your money without stress or fuss because the company is equipped with experienced, well trained and courteous professionals that are ready to assist you any time you require it.
With TFC title loans, it is easy for the borrower to get approved for the car title loan near you and there is absolutely no need for the applicant to worry about travelling down to the company’s office as the whole process can be done online. They are quick to make the cash available as they are aware that coming to them means it is an emergency and they treat it as such. Documentation doesn’t take so long and in a matter of 24 hours, you should have your cash in hand. However, the company still has to make discreet enquiries as to whether the applicant is working or there’s a means of generating income available to him. Credit rating is also looked at as background information even though it is not exactly rate limiting to make sure the applicant has not had any repossession or is not bankrupt at the time of making this application.
A major problem with car title loans is the risk of losing your car which could occur when the debt cannot be paid and the lender has to repossess the car and sell it to be able to recover his money and the sales of the car could be at the value of the car. Imagine that your car is repossessed and it has to be sold. Things could go from bad to worse with no means to commute to work and alternative meaning extra cost and longer time to get to and from work. This could put a strain on you, your health and family as daily tasks like shopping and getting the kids to school could be a problem. It is strongly advised that if you can’t take this type of loan considering all that is required, then don’t do it.