Are You Still Believing These Six Car Title Loan Myths?Fast Action Finance
During these days when emergencies that need some amount of cash come up every now and then, many people would resort to find fast cash. When you are in any of such situations at the moment, you would certainly want that money available to you right when you need it. One option you can run to is a car title loan. Such loan entitles you to borrow cash provided you will use your vehicle as collateral. Once the loan is granted, you can use it for whatever immediate obligation you have.
You might be having some second thoughts about obtaining car title loans. This can be because of the many misconceptions attached to it. Let us break down the myths and learn the truth behind them to erase all those apprehensions you have.
Myth #1: Car title loans are granted to borrowers with good credit
This can be so disheartening if you have a bad credit rating at the moment. There is no reason to believe that statement though. The truth is whilst most loans would require you to have a good credit standing to be able to obtain them, you can consider car title loan as an exemption. Yes you can still obtain this loan even when you have bad credit. The reason why that is possible is because of your vehicle acting as your collateral.
Myth #2: You will only be granted car title loans once you have given up your car
This is certainly not true. With a car title loan, you can always drive home your car even when you have already been granted the loan and you have received the money out of it. Make sure though that you are consistent in terms of making payments so you would not have to resort to giving up your car later on.
Myth #3: You are given the money you need out of the loan because lenders are after your vehicle
A lot of people presume that all auto title lenders take advantage of your financial difficulty and use their capital, which is their money, as bait for you to dig deeper and later on fall into their trap. This is not the real case. In reality, car title lenders want to take you out of your financial obligation and help you to deal with whatever emergency you have at the moment. They would even walk out of their ways to make sure that you will be able to lessen the risks of having to give up your car in the future.
Myth #4: Car title loans will worsen your debt situation
As mentioned awhile back, many people think that car title lenders would often take advantage of your situation. You would even assume that they would do everything in their power to worsen your debt situation that may affect your credit rating once more. This is not true at all. However, you have to take note that when you default on making payments on your car title loan, it will follow that your credit score will be affected.
Myth #5: There is no chance you will be able to pay back your car title loans
This will only happen if you do not understand the nature of car title loans and you have not paid much attention on the terms and conditions that go with it. Once you have familiarised yourself into the process and you have raised all your concerns regarding it, there is no reason for you not to be able to pay back the loan on time or as agreed upon with the lender. In the first place if you read the terms beforehand and you feel like you cannot comply with it, there is no reason for you to ask to be granted such a loan.
Myth #6: Any lender can grant approval on your car title loan
You cannot just go to any lender and seek for a car title loan. Remember that lenders have different terms and conditions too therefore it would be good to assess these first before you enter into an agreement with them. You do not want giving off as much personal information as needed by these lenders only for you to find out later that they are one of those unscrupulous lenders who have a different agenda in granting you such loans.
Take the myths and facts about car title loans as a warning for you to make sure that you should be well-informed about how such loans work. You should by now be familiar with the choices you have when it comes to these loans. Add to that, you should also be introduced to a step-by-step guide on how to be able to obtain a loan and on how to repay them according to the terms set by the lender. When you want to know more about such loans, feel free to contact us.