Now and then something unanticipated occurs and we need quick cash, and that’s money that can’t wait until the next payday. A car title loan can be a means to get that fast cash that you need, and can be done within a day.
Some people think that car title loans are only for those with bad credit and it’s a desperate measure or last resort. Nothing could be far from the truth. If your car title loan is repaid on time, the little interest you’ll pay for the use of those funds plus the quickness and ease that you can get your money make it more attractive as a stress-free way to get quick cash.
To qualify for car title loans, you must have your car paid off so that you’re not making payments on it. The biggest amount of the loan you can get is based on the value of the vehicle. Therefore, if you have a car that is in good condition, you can get a big car title loan. You must also own the title of the car in order to get approval for the loan.
Unlike conventional or traditional loans, a car title loan normally has a period of 30 days, although some can be longer than 30 days. You don’t want to make it for longer because the interest rate charged reflects the lack of required paperwork and convenience for this loan, which means the interest rate is high. The reason for this is the price you’re paying for the convenience, to encourage you to pay it back on time, the speed at which you can usually get your money and creating a revenue stream for the company offering the car title loan.
If you want to roll over the loan into the next month or months beyond that, the interest rate makes it unattractive and prohibitive to do that except you have to. In most cases, that high-interest rate may work it out for an extended loan and you may owe twice the amount that you borrow. If you’re having difficulty paying back the loan, there is also a chance that your car may be repossessed. Therefore, ensure you have a plan in place for repaying the loan.
If you need quick cash, a car title loan can the best way to accommodate that need. With the reduced amount of paperwork needed and the fact that these loans can be approved the same day, a car title loan can get you the money you need immediately. Even a traditional loan with a credit union or bank can take days to process and sometimes you need the cash quickly and can’t wait for several days.
Just make sure you understand you’re making use of your vehicle as collateral and it’s at risk of repossession if you’re not able to repay the loan. It could also put you in a worse financial situation or trap you in a cycle of debt.