Have you ever considered taking out a car title loan? Of course, no one is going to hand over their vehicle for some fast cash. A car is not only your primary means of transportation, but also your best friend on the road and sometimes even your most prized possession(especially if it’s a Mercedes!). However, sometimes there is no other option then to seek a car title loan. This type of loan involves using your car as collateral. This way the company has some assurance if the online loan repayment plan should fall through. If something like that happens you will still take responsibility and cover the loss.
Most applications for online title loans are evaluated according to the fair market retail value. Some companies will run a vehicle value and damage report through sources like Kelly Blue Book. A few larger operations in Georgia and Tennessee rely on vehicle history data and use their own vehicle reports. The vehicle’s condition, appearance wise and mechanically, will also be considered. We know the values of vehicles in the Southeast are going to take a hit when you factor in weather conditions. If everything is in good working condition, you will be offered an amount from the online title loan company. The terms and conditions are usually limited to 80% or less of the total fair market retail value. The online title loan service then has the right to take the title of the car if the contract doesn’t work out. Most states allow a repossession when a borrower hands over a pink slip as collateral. Others like North Carolina and Louisiana do not allow certain types of repossessions. This does seem like an awful big risk to take. What might cause this situation to happen? First of all, reject the idea that a car title loan is a long-term solution to any debt problem. This type of loan is for a short-term solution to a pressing need. For instance, if you encounter an emergency medical situation and use up all of your money on hand paying for the doctor bill. then what can you do about next month’s rent? Or the upcoming car payment?
You could put someone on the spot and ask to borrow money or ask for cash in advance from your employer. However, the most reasonable solution would be to borrow money from a professional lending company. This is the type of “saving face” that really helps. You don’t want to ask for money from your co-workers as this could indicate some measure of irresponsibility. Nor do you want to put any family members on the spot, as borrowing money can test good relationships. Securing a car title loan is a good way to assume responsibility if you have bad credit. There’s no need to panic thinking that using a car title loan amounts to giving your car away. If you are honorable in business and are committed to paying back the loan according to the agreement then your car will never be at serious risk.
What are the advantages to taking out car loans in times of financial difficulty? If you live in a Southern state like Florida or Mississippi you no doubt see many retail lending companies. Miami and Daytona Beach have hundreds by themselves! In case you’re not sure what a car loan actually is, this is a type of instant credit loan that is secured by automotive collateral. If the contract isn’t fulfilled according to agreement then you hand the title over to the company and they take possession of your car. The lender will sell the car and collect profit to cover their loss. Consider different outcomes if you approach a lending company with an automobile to put down. You will usually get more favorable terms and not as much hassle over credit or even work/home history. Your file will still be evaluated for honesty, and information that you give will be checked out. However, the decision on whether to extend you this loan will all depend on the value of your automobile. A newer vehicle or truck in good running condition may merit a fairly high loan, especially with bad credit. Compare the interest rate and payoff that you see with a payday loan. Most cash advance services will hit you with high fees, but you run the risk of a repossession with online title loans. Whereas an older car that doesn’t run so well would only gather a few hundred, if anything at all.
The first advantage of car title loans for borrowers in the Southeast to consider is fast approval. You will not have to wait weeks or even months to get approved by the lending company. Some online companies claim that they can offer car loans in a few hours based upon the person’s application and a copy of the title. This leads us directly into to the second advantage: fast transfer of funds. Does your application check out with the collateral to back up your account during underwriting? You can receive a loan within a business day via electronic funds transfer. The disadvantage of car loans is obvious and involves the possibility of losing your car. However, this scenario doesn’t have to happen if you are careful to keep the terms of the agreement short. Short-term loans happen fast and are repaid fast. They are usually paid within 2-3 weeks as soon as the borrower gets a new paycheck. In the end, this saves everyone money, including you, who will only have to pay a minimal amount of interest.
Can you not afford the repayment terms because of a bad credit score? This means that you haven’t really sat down to calculate the costs. Another factor to consider is if your state even allows online auto title loans. West Virginia and Arkansas have strict restrictions against companies that give cash for a pink slip. Other states like Alabama and South Carolina allow you to use a vehicle as collateral with some rules. Do not take out car loans until you are confident that you can pay them. Know where the money is coming from, especially when you deal with a Southern direct lender. This will help you avoid getting into further debt.