Auto title loans – Your quick solution to dearth of cash supply - Make Money Online

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Auto title loans – Your quick solution to dearth of cash supply

Did you know that your car could do much more for you than just take you from one place to the other? What if you need money soon and your poor credit score is keeping you from getting access to the conventional short term loans? You could obtain a loan against the title of your car and this is one of the best ways of getting access to fast cash without having to go through income verification or credit check. However, although it might sound too simple but not being able to make repayments on such loans will in most cases leave you without your car. Hence, you need to be careful about your repayment ability before taking resort to an auto title loan.
Car title loans – How do they work?

Just as you get loans from pawn shops in lieu of jewellery, here too the lending company will evaluate the price and condition of your car and offer you a loan based on the amount he thinks the car is worth. The lender will then hold on to the title of your car till you repay the loan. This is a short term loan with a pretty high rate and in case you don’t repay the loan within the repayment term, you will literally sell off the car by default to the lender.

Reading the fine print of the loan agreement

You might rejoice at the fact that you can just get cash by taking your car to the lender but before you give it a green light, you should know the legal implications of taking out a car title loan. Here are some vital details you should watch out for.

In what way they calculate the interest and the time throughout which the rate is calculated is something to take note of. You may think that a 3% rate is okay but when you check the fine print, you see it’s 3% per month which translates to 36% in a year. Since car title loan lending companies aren’t subject to usury laws, they can charge you even higher rates.

What kind of penalties for non-payment of loan and late payments are you supposed to pay? Does one late payment mean repossessing your car? Or will the interest rate of the loan increase due to one late payment?

What sorts of mitigation rules are applicable? Do you need to work through mediation and can you take the loan lending company to the court if there’s some pressing need?

The above mentioned questions are important to take note of when you’re taking out a car title loan as this will make you well-versed about what you’re going to enter.

So, it can be concluded by saying that car title loans are one of the best ways of obtaining cash when you need it fast. However, they are not the only way. If you’re not sure about your repayment ability, it is better to opt for alternatives like personal loans, workplace emergency loans or even payday loans. 
Auto title loans – Your quick solution to dearth of cash supply Auto title loans – Your quick solution to dearth of cash supply Reviewed by Lokesh kumar on 2:25 AM Rating: 5