Car Title Loans for When You Need Cash Fast

There are many times in your life when you may need cash but don’t have the funds in your bank account. You may need money to pay for college tuition, home improvements, car repairs or a vacation. A car title loan can get you the cash needed, without the long application process required by banks and other types of lenders.

There may be other reasons keeping you from obtaining a loan from a traditional lender. Perhaps your credit score is bad, or since you haven’t had a chance to build up your credit score yet. A car title loan works a bit differently than a regular loan.

A car title lender will not take a look at your credit history when approving your loan. Instead, your loan is secured against the value of your vehicle. After your loan has been approved, you will receive your cash. You then pay back the loan to a payment plan, plus interest. Failure to pay back the loan means that you forfeit the title to your vehicle. However, most people are able to pay back their car title loans to deadline, so it can be a good way to finance your purpose. A car title loan will also have no bearing on your credit report.

To begin the car title loan process, you fill out an form if you’re applying online. The lending company will then determine the value of your vehicle.

The value of your vehicle will be based on wholesale prices. The lender will then give you a loan based on what they believe your vehicle is worth. They will hold the title of the vehicle until you have paid off the loan in full. At this point, the car’s title returns to you.

This type of loan is different than the car financing loan you obtained when you purchased the car. This type of loan is meant to be short-term. It’s a lot like a pawn shop type of loan where you hand over the item to get your loan, and pay it back over a set payment schedule. If you fail to pay the loan back, the lending company keeps the item, in this case the vehicle. Basically, you’ll have sold your vehicle to the lending company by default.

In order to qualify for the loan, you must own the vehicle outright, and have no other existing loans on it. In other words, the title must be in your own name. If the vehicle’s title is still in the hands of the bank, you won’t be able to use it as collateral for a loan.

To further qualify, you may also be required to be a minimum age, provide proof of residency, and proof of your income.

A car title loan is a good way to quickly pay off finances, or credit card debt that has exorbitantly high interest rates. Car title loans are also a great way to get some quick cash for personal purposes.

Updated January 13, 2018

However, car title loans are not for everyone. When used incorrectly, title loans can bury borrowers into further debt. According to Titlelo Title Loans, a title loan company in Ft. Lauderdale Florida, auto title loans are one of the most misused and misunderstood forms of lending. It is important for borrowers to familiarize themselves with how these short-term loans work. Although title loans are a source of financial relief, they must be repaid within 2 months before they become a financial burden. Overall, title loans are controversial lending products that have the potential to be a viable lifeline to subprime borrowers who use them responsibly.

How to Navigate Past Expensive Car Loans

For many commuters a vehicle is essential to get them to and from work. People with larger families may also need a vehicle to get the family places. Public transit often isn’t an option in small cities or towns. A large percentage of the population relies on a vehicle. But despite the best maintenance on a car, they still breakdown and need to be replaced. Often many people simply do not have the cash to buy a new car, yet they are hesitant to buy a used car more than a few years old. A car loan is how they’ll be able to obtain the best vehicle to suit their needs.  Selling your old car at online companies like We Buy Cars is a great way to get the down payment for a new one.

Obtaining a car loan can be a lot like obtaining the best mortgage. It’s going to take time and research to shop around.

There are many sources for car loans, so before you sign on the dotted line, scope them out first. Your first option is going to be directly from the car dealer. You’ll find that they may offer the best financing, after all, they want you to buy their car.

Your second option for a car loan is from your bank. If your credit report is outstanding, you may qualify for a low interest loan. You may also be able to obtain a second mortgage and get it tacked onto a once-a-month lump sum payment.

The third option is to get it from a company that specifically provides loans to individuals. If you go this route, check the interest rate and loan terms carefully. Often these companies are created for people who don’t normally qualify for an auto loan. This means that the interest rates will be exceptionally high.

If you’re considering the purchase of a new car, and you know that you’ll need to obtain a car loan, it can be of benefit to pull your credit report. There are many agencies that provide this service. This will allow you to learn your credit rating, and whether you need to fix any errors. It can be of benefit to you, as a higher credit rating means that you’ll be able to obtain the best interest rate possible.

If you’re a woman, you may also wish to be extra aware before obtaining a car loan. Many people will assume you have not done your research, and may try to take advantage of that. They’re out to make money after all. Sadly it’s still something that you need to be aware of before you begin your negotiations. It’s important to brush up on car and loan terminology. If you don’t understand something in a contract, be sure to ask.

You may also ask for what you want. Is it possible that they can drop the interest rate a half a percentage point? It can certainly help you out over time, but be of little risk to the lender.

By the time you’re ready to sign on the dotted line you’ll have found the best interest rate for your car loan. Soon you’ll be driving home in your new car!

“Good debt” is for dumb people

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I was facebook chatting yesterday with one of my loyal readers. She was discussing her car loan, when I mentioned my student loan. She said “At least your student loan is ‘good debt’.” She put good debt in quotes because she knows (and I know) there ain’t no such thing as good debt (did you know ain’t IS a word?).

Typically student loans and mortgages are considered good debt. Why? The thought is, with student loans you obtain a degree, and with a degree you get a higher paying job. For mortgage, you take on a loan, buy a house, and sell the house for a profit. Nice idea right?

Have you read my blog’s title? Is it Punch Bad Debt In The Face? I don’t think so suckers. There is no such thing as good debt. Debt is debt…period. A degree doesn’t guarantee higher income, no more than your home guarantees increasing in value. So don’t fall for the trap and think you should keep Sallie Mae around for the 20 year visit she is planning to take.

It’s time to change the classification of debt. There is bad debt (which we all know as credit cards, payday loans, etc) and not-as-sucky-but-still-pretty-crappy debt (student loans, mortgage). Whoever decided to call some debt “good” was a genius. Heck, I wonder how much money that label has made the banks. Probably at least ten dollars 🙂

Don’t get me wrong. I’m not opposed to utilizing debt to get an education or buy a home. In fact, I’m 99.9% sure I will take out a mortgage. But don’t trick yourself in to thinking that your mortgage is good. It should still be seen as a money hungry beast that won’t go away until you MAKE IT go away. Were you like me and once thought  “good debt” existed? If I could go back in time, I probably would have gone to a public college, saved a ton of money, and graduated debt free. Oh to be young, naive, and easily influenced.

p.s. Anyone that thinks student loans are “good debt” is more than welcome to have mine 🙂