Thursday, December 13, 2012

Car Title Loans Sometimes the Only Solution

Car Title Loan Reflection
Car Title Loan Reflection (Photo credit: Jeremy Brooks)
A title loan is a way to borrow money against your motor vehicle. Based on your vehicle's value, a lender determines how much money you can borrow. On average, title loans are $250 to $1,500, but they can be as much as $5,000 or $10,000. The duration of these loans is often short-term, such as 30 days. In a title loan transaction, you keep your motor vehicle and drive it, while the lender keeps the title to your motor vehicle as security for repayment of the loan. If you cannot repay your loan, the lender will repossess your motor vehicle, sell it and pocket whatever you owe. Because of the risk of losing your vehicle if you miss a single payment, you should take the transaction seriously before taking out a title loan.

The biggest benefit to getting a car title loan is that it enables the borrower to get the money they need extremely quickly. Car title loans are usually processed within a day or two. This is because it is a simple process, that really only involves the lender looking at your car to make sure it is worth at least the amount you need to borrow.

Anyone with a car can get a car title loan. This is because there is no credit check or background checks involved. The lender is giving you a secured loan, which means that the loan is based on a piece of collateral that you are putting up. An unsecured loan is when there is nothing involved, but they are giving you money based on the assumption you can pay it back plus interest. There is virtually no risk for the lender, so they have high approval rates with car title loans. Car title loans are perfect if you have bad credit. A bank likely won't give you the ten grand you need for your debt or bills, but if you have a car, the title loan will get you what you need.

Car title loans are a big part of the non-banking community. They are often the only way someone can obtain cash in a hurry for a family emergency. Many people do not have access to lines of credit, credit cards, or personal savings. The greatest asset that most people have is their car. Usually their car is at least worth $1000 or more. Seeking a car AZ Title Loan is their best choice.

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