Car Title Loan - A Quick Source of Money Against Your Car Loan

If you are caught in an unexpected financial quandary, a car title loan can provide you the much needed quick cash to face the fiscal crunch. No one knows when some emergency would crop up and a large amount of your paycheck would get used. Such a situation could leave you with little or no choice for another source of funding if you already have a very poor credit score. It is the best then that you look for cash against your car loan and save yourself from being buried under mounting debts.

What Is Auto Title Loan?

So, also, if your cash flow is running low due to some urgent circumstances and you need short-term cash till your next payday, then a car title loan could be a savior in disguise. It is a means of procuring quick cash, wherein the lender keeps the title certificate of your vehicle and a duplicate of the key as security. In case you are unable to make the required payment in time, the lender sells your vehicle to collect the money. Therefore when you take cash, through auto tile loan be sure to pay back on time, else you might end up losing your car.

How To Get It?

The whole process for taking cash against car title is quite fast and simple. To qualify for such finance, your vehicle should be paid off i.e. there should not be any pending payments for it. The amount of cheap auto loan is determined based on the resale value of the car. The new car loan calculator is quite useful in this regard. It will help you to calculate how much exactly you can borrow and what the corresponding auto loan interest rate will be.

If you are 18 years old or above, with a permanent residential address and if you own a totally paid off car in good condition, then you can easily find an online car title loan cash provider for your title car loans. For it you have to fill out a simple online application form submitting some basic info like name, contact details, employment and income details, etc.

Repayment Process

Repayment process cash against car title loan is similar to that of student car loans and other borrowings. In this case, the loan provider holds the car title certificate that you get back only upon the return of the loan amount along with interest. Being a short-term loan, it incurs a huge amount of interest. Although if you are unable to repay on time, you can roll over into next month. However, in such a case you may end up paying an excess of the actual amount.

So make sure that you have a backup strategy for repaying the car title loan cash long before you start. Never forget that you are putting your own asset at risk and failure to repay on time might result in your losing the car forever. www.titlecarloans.net

Article Source: http://ezinearticles.com/?Car-Title-Loan---A-Quick-Source-of-Money-Against-Your-Car-Loan&id=877244

Car Title Loans Require Responsible Lenders And Borrowers

Car title loans are notoriously known for targeting low income customers with the ulterior motive behind the loans being to their vehicle away. As true as some would say this is, the whole idea sounds a bit exaggerated. People who fall into the desperate need for quick cash tend to be those who are considered low income, but not always. If their credit is poor and income does not support their expenses, then a car title loan is an option available for those who own the title to their car.

Is the car title loans company targeting these customers in order to sabotage their finances or are they offering one other option to help. High interest rates for a short term loan offsets the risk involved in lending money to those with poor credit. These loans work well for responsible borrowers. Someone who uses their investment to help themselves out of a financial jam knowing that the payoff is just around the corner and there is a payoff strategy in place. The lender does not hold the vehicle, but allows the borrower to keep possession of it. There is risk involved with that action. What happens if the car gets damaged during the term of the loan? What happens if the car gets stolen? There are risks involved with lending money to someone with bad credit history and little income. There are additional hassles and multiple costs to repossessing a car which doesn't support the idea that the vehicle is the targeted prize the ultimate goal.

You know that saying, "It takes two to tango"? It takes both lender and borrower to be responsible. If a person needs money that bad and owns their car, they have more than the car title loan option. They could sell the car outright and probably get more money through that transaction. A responsible loaner will only lend a percentage of the fair market value. The lender is not targeting the vehicle, but giving the customer the chance to use the equity in the car without losing it. High risk transactions bring high interest rates and demand a quick payoff.

What would a bank do? If your credit allows you to get a car title loans for people with bad credit from a bank, it will still be used as collateral; the interest rate for a short-term loan will still be higher than standard loans. If you default on your loan, your car will become property of the bank. Do the banks target the vehicle? Lenders target the revenue collected from the interest on the loan. Higher risks always cost more.

How does one be a responsible borrower? For starters, don't apply for a loan that you know you cannot pay back. Secondly, shop around for the best lender in your area. Pay attention to the charges involved and know what interest rates you will be charged. Don't borrow more than what your emergency demands. Stay clear from predatory lenders who pressure you to sign without explaining the costs. Don't sign a contract which contains forced arbitration clauses. These will take away your right to pursue legal action if you have a dispute with their services. Lastly, do what you can to fix your financial situation to keep yourself out of any future financial emergencies. www.titlecarloans.net

Article Source: http://ezinearticles.com/?Car-Title-Loans-Require-Responsible-Lenders-And-Borrowers&id=7123950

Car Title Loans: Advantages And Disadvantages

The ease of obtaining a car title loan has made these types of loans very attractive to people who are having trouble with their finances. It does not matter what your credit score is, the loan is based on the value of your vehicle. If the value of your vehicle is equal or greater than the amount of money you are requesting in your loan, then you will have no problems being approved. The lender will inspect your vehicle and determine the worth.

Car title loans stores will have information on the Internet as to what you need to have with you when you visit one of their locations. When you can bring all the documentation required of you, you can have your loan in hand in as little as twenty minutes. Some businesses will have applications online for you to fill out and send in making the process even easier once you get to the store. There is no credit check or background check involved in the approval status. The vehicle is your fast access to cash.

These types of loans are secure, meaning you will hand over the title of the loan for the period of time the loan is being paid back. Secure loans use collateral to speed up the process and make lending less risky. The collateral is the trade off for a fast loan without the long approval process and high risk for denial without it.

Title car loans are not after your car. You can drive it off the lot with the money in hand. You get continued use of your car or truck while your loan is being paid off. Lenders of this nature use the secure loan process, meaning use of collateral, as a guarantee that you will repay your loan. Financial institutions who give unsecured loans, with no collateral involved, are basing their approval on your credit history as they are lending money on the assumption you will pay it back along with the interest payments.

Those people who have bad credit are not being approved by banks and they are finding a higher success rate with car title loans. A bank will most likely turn you down if you have bad credit and request thousands of dollars to consolidate your debt or to pay bills. With an auto title loan, you will get what you need without the hassle. www.titlecarloans.net

Article Source: http://ezinearticles.com/?Car-Title-Loans:-Advantages-And-Disadvantages&id=7106290