Car Title Loan; An Easy Way to get Cash Loans
One of the easiest ways to get cash loan when you are in need is through car title loan, provided you have equity on the car and you can show proof of ownership through your pink slip. The question here is “are title loans as good as they sound?”.
Car title loans are good considering the fact that it provides you a channel to assess quick loans within a very short period of time because it doesn’t take too many processing to get one. However, you should think twice before going for one, ask yourself if it is the best way out of your current situation. Car title loans are expensive because they attract high interest rates.
Car title loans are similar to payday loans in the sense that payment are usually made every month. As you earn your monthly income, you pay certain monthly amount that you have agreed with your lender until the loan is fully paid off.
Collateral for a Car Title Loan
In order to secure a car title loan, the borrower uses the title of his or her car as collateral. The title to your car or your pink slip remains with your lender until the loan is completely paid off.
Car title loans look very appealing and attractive because they don’t require any credit check, to apply and get approved for a car title loan takes less than an hour, and you have the opportunity to drive your car around while you are paying off the loan. This is why most people regardless of their credit profile will get approved for a car title loan and because of the ease of securing it, they see as a viable option. For individuals who have a definite and solid plan on ground, car title loans might be the right way to go but it might be the beginning of financial trouble for individuals without the right financial discipline and financial plan in place.
Now, let take a look at how car title loans work...
How do Cart Title Loans Work?
In order to qualify for a car title loan, the fundamental requirement for most lenders is that you must own your car free and clear. Owning your car free and clear means that you are not owing on the car, that is, you have equity in your car.
The way it works is simple. When you are approved for a car title loan, you will need to drop your pink slip or title with your lender to serve as a collateral to get the loan. Your title remains with your lender until you fully pay off the loan. Payment is usually made every 30 days or monthly just like a payday loan.
How much Can I Get with Car Title Loan?
You will get certain percentage of the equity in your car when you apply for a car title loan. The percentage you can get varies with different lenders; some give as much as 50% of the equity of your car.
Other alternatives to title loans include negotiating your debts, use your credit card, request an extension from your creditors, apply for unsecured personal loans, use your tax refund or borrow money from friends and families. Learn more at https://medium.com/@1lowdr/consider-a-title-loan-for-cash-today-its-all-online-with-tfc-537d1733a33c