Are Title Loans the Right Solution For Your Money Problems?
If money is tight, a title loan may be for you. With a title loan, you can use your automobile as collateral. Unlike traditional loans, a title loan can be easily secured. In some cases, your credit will not be considered. This makes a title loan a great alternative with those with less than perfect credit.
Advantages
- First, your credit score will not be checked…and it won’t be effected if you are approved or not for the loan. This really helps in the time needed to get approved, no matter what your credit score is it is not effected in any way.
- This really shortens the time lenders need to approve loans. If you need the money quick for a family emergency, this really is a benefit.
- The amount you borrow can be small. Larger lenders depending on credit scores usually like for their customers to borrow amounts in the thousands. This can get you into real trouble.
Are Title Loans Safe?
When you take a title loan, you are taking a loan which is usually due to be paid back in a short amount of time. All short-term loans have a higher interest rate than their long-term counterparts. So is there more risk? If you think about it you will realize all types of loans carry risk. No loan is ever without risk. Your mortgage loan has the risk of losing your home if not paid. Credit cards have risk, if you do not pay them you will be sued and your wages garnished. All types of loans have risk, don’t let anyone tell you different.
Just as you manage your other debt in your life you must take serious all your obligations and be responsible to not take on more debt than you can manage.
To secure a title loan, start by researching the value of your car. When researching, things like mileage and car condition should be taken into consideration. Next, look for title loan companies in your town. If none are found, take your search to the Internet. Find an online company that has the easiest application process. When looking online, check out LoanMart’s online auto title loans. Once you have located several companies, ask about repayment terms. You should also inquire about interest rates. Select the company that best fits your needs.
Now that you have found the right company for you, gather all of the necessary paperwork. In most cases you will need proof of income, contact information and proof of residency. Next, fill out the appropriate paperwork. If completing an online application, the paperwork may be done over the phone. After completing all of the necessary paperwork, your loan will be processed. This can take anywhere from minutes to hours. To avoid high interest rates, repay the loan as quick as possible.
Category: Loans
