Is A Car Title Loan A Monetary Option To Help You Repair Your Vehicle?Fast Action Finance
Are you currently having some problems with your car? Have you decided to bring it to an auto shop only for you to find out you will be spending more than you can imagine for its repair? The sad thing that can happen here is you have not really prepared yourself for this problem. You might not have allotted the cash needed for an extensive car repair. This can indeed mean more problems on your part.
If the repair is estimated to be more than a thousand dollars, there is reason to fret. But of course, you have to exhaust your options especially if you need the vehicle badly and you cannot do without it. Perhaps you will try talking to the auto mechanic and ask him your options if you avail of credit from the company. If he cannot grant that wish of yours, you might as well avail of a car title loan instead. You may ask: Is this type of loan a good option to avail of when you want your car repaired?
Why use a car title loan in the first place?
Using a car title loan can work a lot to your advantage when you want your car repaired. Consider the fact that you can get cash from availing of that loan and use the amount to get your car repaired immediately. That would mean a great benefit on your part especially if you need your car every day and it is the only means of transportation you have to send kids to school, run errands or even go to work.
A car title loan is one option you can avail of too if you have poor credit ratings since in this case you will not expect banks to grant you the usual traditional emergency loan you need. Sometimes, even if you still qualify to avail loans from financial institutions, you have to remember that the entire process can be very lengthy, meaning it can take too much of your time. Formalities will be required and the procedure can take days before you get the cash you need. With these, availing of car title loans is the best option you can get.
How does the car title loan application go?
The entire process goes easy provided you choose your loan provider wisely. Basically, you need to use your vehicle’s title (precisely why it is called a car title loan and not anything else). That car title of yours serves as your collateral for the amount of loan you will avail of. When you use that same title to repair your car, then you can be guaranteed you will be able to use it once it has been repaired. From there, you are expected by the lender to pay off your debt according to the terms you have agreed upon. As you notice, the entire process takes no time as long as you have the car title available for surrender to the borrower.
Are there any disadvantages of using a car title loan to repair your car?
Yes, there can be a disadvantage when opting to get a car title loan to repair your vehicle. That would be the fact that the interest rate is commonly higher when compared to those offered by banks. The reason behind why there is a hefty amount of interest rate is the fact that car title loans are commonly granted to individuals with bad credit. The borrower just wants to make sure you will be able to pay off the loan according to their terms. This can mean more on your part and can even mean more money allotted for your car’s repair.
However, what makes them lesser of an expense on the pocket is the fact that they do not come with add-on charges, a common additional burden that financial institutions and banks may charge if you avail of a loan from them. This can compensate very well for what seemingly has been added to your credit amount through the car title loan’s interest rate.
How do you take advantage of the car title loan for car repair?
Being granted a loan when you have a bad credit rating is already considered an advantage given by car title loans. You can take more advantage of that opportunity though by making sure you pay the amount you have loaned on time. If you default on your payment, expect that the entire car repair will be useless since you will lose it to the lender. You have to be able to sit down then and talk with the loan provider and make sure you come to terms with them in such a way that you will be given the chance to repay your loan according to your capacities as the borrower. It would be wise to opt for a short-term car title loan since this would mean lower total amount of payoffs for you when compared to opting to avail of a long-term car title loan.