Auto Title Loan: An Overview |
|---|
|
Laura J. Solomon
July 27, 2013
Many people are turning to an auto title loan to help them to get the money that they need so that they can get their finances sorted out as quickly as possible. Imagine for a moment, you come home from work and you have a 24 hour shutoff notice for your water on your door. You don't have any extra money. You know that if you don't get this paid, you are going to have serious problems. You don't have the cash in the bank nor do you have credit cards, family members, or friends you can ask to help. It looks like your only option is to apply for an auto title loan.
An auto title loan is a loan that you can qualify for as long as you own your car free and clear. You must have the title in your possession in order to give it to your the lender to hold onto during the loan term. You will bring it to the auto loan store where they will give you either cash or a check for the title to your car. If you pay back your auto title loan, you will be given back the title to your car. If you don't pay it back, the lender has the right to repossess your automobile. it's pretty cut and dry.
If you are thinking about applying for an auto title loan, you don't have to worry about a credit check. The title to your automobile is your credit. Thankfully, you can qualify for an auto title loan as long as you have the title to your car which is in your name. Borrowing money has never been as easy as it is now.
If you prefer, you can apply for an auto title loan online. This way, you can qualify from the comfort of your own home. The money can be deposited into your bank account. This is perfect for those who don't have a lot of time to come into the store. Of course, the lender may need to see your car or truck before they fund your loan. Make sure you are clear as to how you will get them the pink slip and whether or not they want to physically see the car.
Also, make sure you understand the lenders loan terms. Auto title loans are short-term like payday loans but because the amount you can borrow on an auto title loan is generally greater than a payday loan or cash advance, you will most likely have more time to pay it back. it is also very important to understand the implications should you not be able to make your loan payments or payoff what you owe. Auto and car title loan lenders have the right to repossess your car should you go into default on your loan. In most cases of repossession the car or truck will be taken to auction and sold in an effort for the lender to make back what you owe them on your loan.
If you are considering taking out an auto title loan be sure to understand all of the lender terms and conditions before you accept the money. If you doubt your ability to pay the loan back, you should consider finding another way to get the cash you need.