Every now and then something unexpected comes up and we need some quick cash, and that is money that cannot wait until the next payday. A car title loan can be a means to provide that quick cash that you need, and can normally be done in one day or less.
Some people think that car title loans are only for those with very bad credit and it is a desperate measure of last resort. Nothing could be further from the truth. If your car title loan is repaid on time, the little bit of interest you will pay for the use of those funds plus the ease and quickness that you can get your money make it all that much more attractive as a least-hassle way to go for fast cash.
In order to qualify to get a car title loan, you have to have your car paid off so that you are not still making payments on it. The largest amount of the loan you can get is based on the resale value of the car, so if you have a newer car in good condition, you can get a larger car title loan. You must also be the person on the title of the car in order to be approved for the loan.
Unlike a traditional or conventional loan, a car title loan usually has a term of 30 days, although some can be made for longer. In reality, you don’t want to make it for longer because the interest rate charged reflects the convenience and relative lack of required paperwork for this loan, which means the interest rate is usually quite high. The reason for this is the price you are paying for the convenience, the speed at which you can usually get your money, and to encourage you to pay it back on time, plus create a revenue stream for the company providing the car title loan.
If you need to roll the loan over into the next month or even months beyond that, the interest rate makes it very prohibitive and unattractive to do that unless you absolutely have to. In some cases, that high interest rate may work it out for an extended loan so that you owe twice as much as you originally borrowed! If you are having difficulty paying back the loan, there is also the chance that your car may be repossessed, so make sure you have a plan in place for repaying the loan before you start.
If you need cash in a hurry, a car title loan can be a great way to accommodate that need. With the greatly reduced amount of paperwork required, plus the fact that these loans can usually be approved the same day, sometimes within hours, a car title loan can get you the money you need quickly. Even a conventional loan with a bank or credit union can take days to process and get a check to you, and sometimes you need the cash NOW and cannot wait for several days.
Just make sure you realize you are putting your car at risk if you are unable to repay the loan on time, which could put you in an even worse financial situation!