In need of quick cash NOW? Going to a bank can be a pain. Calling around for loan terms, filling out forms then waiting days if not weeks to find out if they approved your loan. What if you have a bad credit history? Will they loan you the money? If you own a car (or trucks, SUV) you can probably get a cash title loan.
What is a car title loan? A car title loan can be used for quick short-term loan needs. This loan is usually for 30 days, but depending on the lender, may be extended for several 30-day periods.
Pros and Cons of a car title loan.
Pro: A car title loan is a very quick and easy way to get a loan. You can sometimes get a loan in less than 1 hour. Typically you can get a loan in 24 hours. To get this loan, you will pledge the value of your car as security for the loan. This means the lender will loan up to half the value of your free and clear car. Lenders will base the amount of the loan of the value of the car and your monthly income. Some lenders will even loan you money if you are unemployed and can show proof of receiving an unemployment check. Lenders will loan you cash from $500 or more depending on your income and car value. The loan will be for 30 days with possible extensions. You will still have use of your car while you have a loan against it. At the end of 30 days, you will pay back the balance and all interest that has accrued on the loan.
Con: Title loans carry a high interest rate. The rate on the loan is lower than if you went and got a payday loan. Why is this? It is because you are using your car as collateral for the loan. This give the lender some security with the loan as opposed to a payday loan where all the lender has is your signature. If you need to extend the loan after 30 days, those interest charges really start to add up. That’s why it is advisable to only use this for a very short-term cash need.
So there you have the pros and cons of using a car title loan. Used wisely, it can help your short term cash needs.
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