During a cash crunch, your own car can be very handy when you are looking for an extra cash to help you get by. This can be done through car title loans.
Car title loans are very easy to apply to provided that you own the title to your car free and clear of any balance or liens against it, you can qualify for a title loan in just a matter of minutes. One of the best things about a car title loan is that it does not involve any credit checks. This is because your car will serve as the collateral for the loan. Just in case borrowers default on their loans, there are some lenders that may require borrowers to give up a spare set of keys to their car.
Just the same with other quick loans, car title loans are also intended for short term use. Repayment of the loan can range anywhere from 2 weeks or up to a month after the loan has been issued. If you’re wondering what will happen just in case you don’t have money to pay off the loan on its due date, all you have to do is to roll over the loan for another period of payment. However, it is always advised that borrowers avoid rollovers as much as possible because they often involve large interest payments just so the loan won’t default. The problem with this is that you pay huge sums just to cover the interest and none of the principal is paid off. Borrowers that roll their loans over end up paying many times the original amount of their loan. It is reported that there are even title loans that has triple-digit annual percentage rates.
On the part of lenders, a car title loan has very little to no financial risk whatsoever because the loan is always secured by the car’s title and the loans that borrowers take out is always less than the actual value of their cars. However there are borrowers that are able to bargain well and get up to the fair market value of their cars approved for their loans.
On the part of consumers, title loans can be quick financial solutions for their short term needs but it involves a very high financial risks especially of the borrower is not careful in paying the loan on time. There are even some borrowers that borrow more money than they actually need and end up having a hard time paying off the loan. So it takes discipline and self control to be able to manage a car title loan well. Depending on how you use it, it can a breeze to get your hands on or a nightmare to get rid of.
If you are wondering where to look for a lender of car title loans, there are actually many bad credit lenders that specialize in car title loans. There are some online or you can also drop by one in your local area. You’ll be surprised how quick and easy the process will be and you can get your much needed cash within the same day.