Financial crises strike when you least expect them to and leaving you bewildered and wondering what to do and where to go for assistance. Banks are not as forthcoming as yesteryears when credit restrictions were not so harsh. Loans for vehicle title are a trusty option for many people, while many others consider them a mixed bag of good and bad. Here’s the complete lowdown on loans for vehicle title.
Interest rates are higher but reasonable: The biggest bugbear of a pink slip loan is its interest rate that will be higher than bank loans. What people fail to understand is that a higher interest rate is very much justified considering the fact that the lender is risking his money lending to complete strangers, many having poor credit backgrounds and carrying higher lending risk. The best title lenders amply compensate by never exceeding 25% APR which is very competitive if you compare them with payday lenders who levy excess of 400% APR.
Repayments schedules are immensely flexible: Any loan (payday, pawn loan) that restricts you to repaying a loan within thirty days is suspect. Since the interest rate charged by such lenders is already sky high, any default places the borrower under tremendous strain, and rolling over is not viable because the loan outstanding doubles pretty quickly through daily compounding. These are patently unfair lending practices. The cash loan for title diffuses any crisis by extending the terms of repayment from three months to three years for more sizeable loans.
The risk of default is pretty low:
Through a payday loan default you risk a garnishment order on your salary that will cut off your main source of income. A defaulted home loan may lead to foreclosure of your home; an irregular auto loan can result in repossession of your car. The pawn car title loan also carries the risk of repossession but unlike smaller payday loans and larger home loans, at least your salary and your home survive intact. Unlike bank loans and payday loans the repayment terms for fast car title loans are the most flexible in the market. Moreover, these repayments are adjusted to your level of income, so the chances that you might default the title loan are almost nonexistent.
Your credit rating is irrelevant to eligibility: Whether a bank gives a personal loan or a home equity loan, the deciding factor is how pristine is your credit report, and how high is your credit score. This leaves people with bad credit or no credit completely sidelined with little or no scope for getting their loans approved. The auto equity loan clears the arena for such people to apply. The car equity loan is only concerned whether you have the resources to repay the loan, and the decision to give you or deny you the loan is not linked to credit standing or past credit performance.
Speed of delivery of cash is guaranteed: Go to any bank for any loan and you could spend hours or days running here and there while the banker scrutinizes every inch of your financial life, and much of that information may not be worthy of scrutiny. Countless hours in assessments and needless formalities come in the way of quick cash. The auto collateral loan solves this by restricting formalities to the bare minimum. Proof of identity, residence, car ownership, and income will get you a car equity loan within minutes.
Safety and convenience are assured: The really big players in the title loan market, that are truly dominating the market, have a huge online presence matched by a strong terrestrial network of upfront stores that cater all categories of customers. The advantage is that you can log in from any remote destination and file an application for a title loan. The free instant quote tells you exactly what you get within seconds; thereafter it’s simply a matter of driving down to the nearest store to avail the cash within fifteen minutes flat!