Having bill collectors call you all hours of the day is stressful and if you can’t find the money to pay them back they can get pretty nasty. You do have one last option that is available to you…your car. How does that work? You can secure a loan based on the title of your car and get those bill collectors off your back. Yes, you can use your car to get out of debt.
How Does this Work?
If you own a car that is already paid off then the whole process is pretty simple and fast. Essentially the lender gives you money and as security you are going to give him the title to your car. There are lots of companies that specialize in auto financing that can offer you easy approval online. They use the internet to help as many people like you as possible. Most of their sites are already set up with the right software that will show you right away what your car is worth and how much you can get a loan for. Here is an overview of how they work.
The Fine Print
First of all you need to understand that this is a very short term loan. The lender is far more interested in the value of your vehicle than they are your FICO score and they may want to see that you have adequate car insurance. Given all that there are 3 things that will affect the amount of your loan:
- The amount of cash you’re looking for
- The value of your car
- How will you repay the loan (do you have an income)
Auto Pawn Loan or Car Title Loan
There is a pretty big difference between the two. If you want a pawn car loan you’re going to have to give your car along with the title to the pawnbroker. The car itself is going to stand as security. You can get more cash but you won’t have your car. title loans st joseph mo offer a little less cash but while you’re repaying the loan you can keep your car.
If You Can’t Repay the Loan
If you can’t pay back the car title loan Albuquerque then you face the very real possibility of losing your car. Before that happens though talk to your lender and see if you can extend your loan for one more month with a process that is referred to as “rolling over” your title loan. If you still can’t repay the loan then the lender will take your car. You need to remember this is a short term solution and this needs to be paid off within the time frame.
A car title loan is not for everyone but it will offer you money when you have absolutely no other alternative. Always make a plan to guarantee that you make the payments on time.
Times are tough and all of us are struggling to meet our financial obligations. It seems some days that money problems are never ending and can’t see any light at the end of the tunnel. Despite the recession being declared over long ago, you still have more bills than money and they keep pouring in. It doesn’t matter how hard you try you still are struggling to make ends meet. Loans have always been there for people in times of trouble, but not everyone can meet the criteria set out by the bank. Leaving you searching for other options, car title loans can help when the bank won’t.
What is a Car Title Loan
Car title loans in South Carolina or title loans in Kansas City are simply where you use your car to secure a loan. You can use a car, truck, motorcycle or any other type of vehicle to secure the loan. However mostly cars and trucks have been used to secure this type of loan. You surrender the title of your vehicle in exchange for some cash. Sometimes the lender will require you to hand over the title and a duplicate set of keys for the vehicle. Unlike some other loans, like an auto pawn loan you do get to keep and use your car throughout the whole process.
Why Get a Car Title Loan
You need to understand that title loans are not ideal for every financial situation. They are short term loans meant to handle an emergency such as grocery bills, medical emergencies or urgent electric bills when they are threatening disconnection. Car title loans offer an urgent solution in an emergency situation. You can apply online for a car title loan and it will only take a couple of minutes. It’s as easy as filling out an application on a website, no waiting for someone to approve your loan.
Not only do car title lending companies offer you a quick and easy application process it is the fastest way to get money in your bank account exactly when you need it. It only takes a day or two, sometimes as little as 24 hours to have cash in hand. Once the money is in your account you can easily handle whatever financial emergency that you need to. Car title loans are a great substitute for when the bank says no. You can have cash in the fastest and simplest way possible.