What Are the Basics to Car Title Loans?Fast Action Finance
If you find yourself needing quick cash, consider a title loan against your car. However, the biggest factor to this is that you need to own your car. This means you are no longer making payments on it, and you have the title to it.
With this type of loan, your car is used as collateral, and what this means is that if you do not pay back your loan, your car is seized and taken from you. You give the lender the title to your car once you sign the papers to receive the loan. However, you do get to keep your car unless you stop making payments.
There are a few risks that come with this type of loan, and one is that you are going to be paying an unbelievable amount of money in interest. Did you know that some companies charge as much as 300% in interest?
Many people who cannot receive a payday loan will try to go this route to get the cash they need. You are not going to be able to borrow more than what the car is worth. For example, if your car is worth $10,000 you cannot borrow more than that. However, you should only borrow as much as necessary; not necessarily all $10,000.
If you find yourself in a bind to get through a few months of bills, this is a great option since the lenders don’t base a decision on your credit.