Tag Archives: cash for car title loans

The Advantages Concomitant with a Car Title Loan

It is definitely necessary for every person to have his/her own car because having a car can enable a person to be readily mobile; likewise, having a car nowadays is already a necessity. Some people however buy cars to show off. Since these people have the financial capability to buy luxury cars, they make sure that they have one of the luxurious cars that is available in the car market. Some people however buy cars as a form of investment which they can use later on when they badly needed loans like car title loans. In times of need and financial strait, they can use these cars as collaterals to obtain the needed amount of money to get by during critical times.

What is a Car Title Loan?

Some people usually confuse car title loans with car loans. On the one hand, car loans are availed of to finance the purchase of a car. On the other hand, car title loans are loans that you can avail of using your car as a collateral. In a car title loan, you are using your car to get the needed loan for whatever reason you would use that loan. A car title loan is a highly secured loan because it is secured against your car. At the same time, you can still drive around your car despite your car being used as a collateral to your loan. Hence, if you are living, for example, in Canada, and for whatever reason, you end up in dire need for money, you can then use your car as a collateral to avail of one of the car title loans Canada can offer.

The good thing about car title loan is that you can avail of it in spite of the fact that you have a bad credit rating. Most loans can be availed of if you have good credit rating, and for this reason, most people have to take care of their credit scores and make sure that their credit ratings are good enough so that you can qualify for loans. But it is different thing if you need money and your credit score is low, for surely, you would find it hard to get a loan with a bad credit rating. If you have a car however, you can readily avail of a car title loan despite your low credit score as long as you can comply with the other requirements for a car title loan.

Getting Out of Your Difficult Financial Situation  

The important thing in life is to make yourself financially independent and stable. However, life is cruel sometimes, and there are bad twists and turns in life that sometimes land you in dire financial strait. If you have already exhausted all your possible options to gain the needed financial assistance, you can surely consider availing of a car title loan as your last resort to stay financially afloat. It may be painful to see your car being used as a collateral for your loan, but if it may be the only wise and viable way to get yourself the necessary loan.

Bad Credit Title Loan

Auto title loans are become increasingly easy to secure. They are short-term loans, and they use a vehicle as collateral. The lenders who offer such loans are not interested in the borrower’s credit score, so these loans are fit for those who have bad credit. For a borrower to secure a bad credit title loan, a person can either seek for lenders in town or online. The online version is more comfortable and gains more and more popularity.

To secure a bad credit title loan, the borrower needs one form of identification or another, a valid government-issued ID, such as a driver’s license, and a proof of a stable income. There are other requirements to secure such a loan: some form of mail to prove the borrower’s residency, car registration, a lien-free car title in the name of the borrowers, some references. Some states might require even having car insurance, though not all states do. The maximum sum a borrower can get is determined by the value of the collateral. Usually, lenders will offer up to half of the car’s resale value, and some will go even higher. However, the borrower must have a clear vehicle title, which means that the car needs to be paid in full and have no liens or any form of current financing. Some lenders also require a full insurance on the vehicle.

The interest rates vary from state to state, and from lender to lender. They range between 36% and sometimes go above 100%, which makes these loans some of the most expensive ones, almost as expensive as payday loans. Payment schedules are different from lender to lender, but usually the borrower has to at least pay the interest at each due date. When the term of the loan ends, the full outstanding amount could be due in a single payment. Again, this may vary. If the borrower cannot repay the loan at this time, they can take out a new one, known as to roll the balance over. Most of the times there is a limit to this, for borrowers to not remain perpetually in debt.

If the borrower doesn’t pay back the loan or is late with the payments, the lender is entitled to take possession of the car and sell it to recuperate the money. But lenders only choose this option as a last resort, for many reasons. It may take a long time to recover the vehicle, months and months, and the costs with repossession, auction and court make lessen the amount of money lenders will get back. In most states, law requires the title loan lender to hold the vehicle for 30 days before selling it, so the borrower may pay the loan and recuperate the car.

However, bad credit title loans should only be considered as an emergency, and paid as soon as possible, to avoid the high interest rates and various commissions.