Automobile Title Loans

Automobile title loans was not my first thought when I needed some fast cash to pay some bills I got behind on. I thought the process would be much tougher then it was. Finding the right place to get the loan and determining the amount was probably the hardest part, I had to do. Here are some of the steps you will need to follow to get your first loan.

Taking the proper steps with car title loans is very important if you want to get the best deal possible. Many time people need a little extra cash and these loans can provide it. Let’s get started on things you need to know about these loans. The amount of your loan will depend on the make and condition of your vehicle along with other factors. The vehicle will also need to be inspected as well. State Issued I.D. or Drivers License along with proof of income will also be needed. Searching for the loan online is the quickest way to find one. There are many different loan providers so check each one carefully to see who offers the best terms as far as interest and paying it back. It does pay to shop around so don’t be shy talk to more then just one loan provider. Easy application forms and quick approval are something these loans also give you.

There are some things that you will need to remember about automobile title loans. Paying back your loan is vital as if you do not repossession of your vehicle can happen. I know the thought of that alone will definitely make sure you pay it off. Losing your vehicle over a small amount of money is never worth it. When choosing a loan provider always go with a reputable company that has been doing it for a while. Getting these type of loans can help you in a pinch, and it has helped me out several times with great success.

When Are Auto Title Loans The Best Choice?

Auto title loans are a great way to get cash fast. They can offer much more money than a payday cash advance does, and the approval process is much easier. What this means for many people is that they’re lent more money than they can afford to repay, and they get themselves into trouble. I’m not going to tell you that you shouldn’t use pink slip loans to help you out, but I’ll show you a few things to consider before you sign on to accept the loan.

The major advantage of an automobile title loan is that it’s the easiest bad credit secured loan available. You don’t need to own a home, or have any other sort of collateral. Your car is your meal-ticket. Another upside is that in many cases you don’t even need to be employed. This is one of the few loans for unemployed available. The loan still has to be paid back, and that can be hard to do without a job, but we’ll talk more about that later on.

How Do Auto Title Loans Work?

Before digging into when you should choose title loans, we should back it up and give a quick explanation of what they are and how to get them. Put simply, a title loan is a secured loan (a loan with collateral) that doesn’t require a credit check. You need a car that’s paid off, the title, an extra key, and proof of who you are. You’re lent money based on how much your car is worth, and you can usually get up to 50% of its total value. Some lenders have a minimum amount that they’ll lend, cars with a minimum value of $5000, this is more common here in California but almost non-existent in states like Arizona.

After you’ve been approved for a pink slip loan, you’re given terms of when to pay it back. Some loans are short-term, like payday loans, while others will give you a few months and a payment plan. If you have a choice, go with a longer term loan. It’ll probably carry a higher interest rate, but the smaller payments will be much easier to swallow each month/week.

If you don’t pay the loan back you’re in trouble. You many have terms that will allow a short grace period, with very high fees, to get the money together. Title lenders build their business around repossessing and selling cars. This means that there isn’t going to be any hesitation on their part when it’s time for them to take your car. In some states they aren’t required to pay you the difference between what your car sold for and what they were owed, so you could end up losing big!

Still Want A Title Loan?

Of course you do, or you wouldn’t have read this far down!

Like I said above, title loans are a great resource for getting fast cash. The key is being able to pay it back. Many people get in trouble because they borrow more money than they’re going to be able to repay, this makes them doomed from the time they sign the paperwork. It isn’t the title lender’s job to be your financial adviser, so you can’t rely on them for solid financial advice.

Let’s run through a scenario to help you understand how this works. For the sake of the example, let’s say that your refrigerator broke and you have to buy a new one, a $750 expense. You make $500/weekly at your job, or $2000/month before living expenses are deducted. You’re offered a $1000 loan from from the title loan company, to be repaid 30 days from today at the rate of $25 per $100 borrowed (a common rate). From the start, you’re in trouble since you’re about to borrow $250 more than you needed. That extra $250 is going to cost you $61.50 in interest!

To repay your loan, the total amount due is going to be $1250. Basic math tells us that you’re only going to have $750 left from your month’s salary to cover the rest of your living expenses, or $187.50 a week! That’ll barely cover food! If you would’ve only taken the amount of money that you needed, you would end up with $265.63 each week, that’s much easier to swallow!

The lesson here is to only take what you need, or you’re going to pay them interest on money that you would have had in the first place!

When Are Title Loans The Best Choice?

Title loans are the best choice when you need money and will realistically be able to pay it back. People who don’t have a job don’t have a lot of places to turn for a loan, and pinkslip loans are certainly an option. The only thing that you must remember is to not bite off more than you can chew! You’ll lose your car and a ton of money!

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