Every now and then something you don’t expect springs up and one needs some quick cash, and that is money that one cannot wait until the next payday to have. Car title loan is asure means to provide that quick cash that you need, and this can often be done in one day or less.
Some people feel car title loans are just for those borrowers with very bad credit and it is a desperate measure of last resort. That’s not true at all, car title loan is beneficial to all. If you repay your car title loan on time, the little bit of interest you will pay for the use of those funds plus the ease and quickness that you can get your money make it all that much more attractive as a least-hassle way to go for fast money.
If you want to qualify to get a car title loan, you have to own a car and have your car paid off so that you are not still making payments on it. The largest amount of money that you can get from the loan is based on the resale worth of your car.So, if you have a newer car in good condition, you can get a larger car title loan with it. The title of the car must be in your name in order to be approved for the loan.
Unlike a traditional or conventional loan, car title loan usually takes a term of 30 days, even though some can be made for longer period. In reality, it is not advisable you take the loan for a longer time because the interest rate charged reflects the convenience and relative lack of required paperwork for this loan, which means the interest rate is quite high.
This is because the price you are paying for the convenience, the speed at which you can usually get your funds, and to encourage you to pay it back as scheduled, plus create a revenue stream for the company giving the car title loan.If you need to get the loan rolled over to the next month or even months beyond that, the interest rate makes it very prohibitive and unattractive to do that unless you absolutely have to.
In most cases, that high interest rate may work it out for an extended loan so that you owe twice as much as you initially borrowed! If you are finding it difficult to pay back the loan, there is also the chance that your car may be repossessed by the lending company, so make sure you have a plan in mind for repaying the loan before you start.
If you need cash for an emergency, a car title loan can be a great way to accommodate that need. With the greatly reduced amount of paperwork and formalities required, plus the fact that these loans can usually be approved the same day, sometimes within few hours, a car title loan can get you the money you need quickly.
Even a conventional loan with a bank or credit union can take longer days to process and get a check to you, and sometimes you need the cash urgently and cannot wait for several days.Just ensure you understand you are putting your car at risk if you are cannot repay the loan on time, which could put you in an even worse financial situation!