Car Title Loan – Your Absolute Financial Partner
Title loans provide quick cash, especially to borrowers with bad credit. In this case, the borrower must own a car which is used as collateral. Car title loans are secured. This is because the lender takes charge of your vehicle’s title and an extra key until you pay the money back in full.
Being short-term loans, they should not be a burden to the borrower. However, it is worth noting that the money has to be paid back within the agreed period. In the case whereby you, the borrower, do not have the ability to complete the payment within this period, a roll-over may be granted although you will have to pay a higher interest rate.
Car Title Loan Limitations
Certain limitations apply in car title loans. First, your car must be lien-free. You must also present a clear and valid title of your car. These loans are a type of payday loans. The difference here is that you get to place your car as security. Should you default in the loan, your car could be repossessed by the lender.
Phoenix title loans are especially popular because people facing defaults, arrears, bad credit, among others are eligible. Because the process is completely risk-free for lenders, it is often fast and easy. A borrower is thus able to meet their emergencies such as completing a medical bill or a debt. It only takes a few hours to get approved. In fact, because title loans have your vehicle as a guarantee, the interest rate is not often as high as a cash advance.
Auto Title Loan Consideration
If you are in a financial crisis, and thinking of getting a car title loan, find out if the lender accepts bad credit. If they don’t, you might have to get a cosigner or look for another lender. Determine the risks and benefits of taking out the car title loan. Also, consider the interest charged. Can you manage the repayment of the loan within the given time frame? Is the emergency worth risking your car?
Once you come to terms with the idea of getting the financing, research widely before securing a loan. Shop around for potential lenders including online and offline lenders, and then shortlist them based on their terms. The lowest interest rate and a comfortable repayment period should be considered. Other things you need to consider are:
- How quickly can you complete the payment? Find out if there are any waivers for an early repayment
- Can the terms be negotiated?
- How much money do you need for your emergency? Some lenders have a fixed amount
- How credible is the company? Look for reviews online to see what previous clients think
Anyone can face financial hardship. In such times, a title loan can come in handy as an efficient way of getting you back to your feet. You only need to use this loan responsibly, to manage emergencies, unexpected costs, and short-term needs. Be careful in identifying a credible lender with low-interest rates and flexible payment options.