- Posted October 2, 2013 by
Los Angeles, California
Who Benefits from Car Title Loans?
People who are down on their luck often have poor credit. Few financial institutions are willing to make loans to those with poor credit. Most of the time, your credit has very little to do with your loan. The loan is based on the value of your car and your ability to repay the loan. People who need quick cash for a variety of reasons can benefit from car title loans, especially if they cannot get loans from other sources or do not have time to wait for the often lengthy loan approval process. In as little time as one hour you could have the cash you need. Contact us today for more information.
Understanding Auto Title Loans
Before you actually apply for the loan, you may want to know how auto title loans work. The basic idea is that if you have equity in your car, you can borrow against that equity. You will make arrangements with the lending company to pay the loan back in equal monthly installments. You will pay interest on the loan in the amount specified by the loan documents. You will be able to continue to use your car for the duration of the loan, just like you would with a regular auto loan. If you are not able to make the payments there is the possibility that the vehicle will be repossessed. However, reputible title companies will work with you to avoid that option if possible.
How Do Auto Title Loans Work?
If you need some quick cash, you may have heard about auto title loans and have been wondering "How do auto title loans work?" The process is fairly simple and you don't even need to have good credit to be eligible. Your car serves as the collateral and you can borrow money based on the car's value. We will assess your ability to pay the loan back and the amount of equity in the unit and that will determine how much you may borrow. Title Loan companies can help you through the process so that you can quickly get the cash you need.
Why is an Auto Title Loan better than a Payday loan?
A payday loan amount typically ranges from $100 to $300, is short-term and is to be paid back in full in 31 days or less. Payday loans rely on specific income for future repayment (such as your next paycheck or a pending tax refund), whereas an auto title loan is designed to advance much larger loan amounts (thousands of dollars) to be paid back over a longer period of time of 24 to 36 months.
In other words, an auto title loan is designed to cure financial needs, whereas a payday loan may be seen as a temporary fix.
For more information on Title Loans, call the experts at 866 913-7487