A Car Title Loan uses your vehicle as collateral for a short-term loan. Typically, the lender will require you to surrender the vehicle’s hard copy or electronic copy of the title and your driver’s license. In addition, the lender may conduct a credit check. If you have bad credit, this shouldn’t prevent you from getting a Car Title Loan, but it is important to understand the terms and fees before applying.
Emergency Funds on Wheels: Exploring the Benefits of Car Title Loans
The maximum borrowing amount depends on the value of your car, and a lender may charge an upfront fee as well as a high interest rate. A car title loan may be a viable option if you need quick cash, but the repayment terms can quickly become unmanageable if you fail to make payments. In addition, a lender can repossess your vehicle if you default on the loan. There are other ways to secure quick cash that are less expensive and don’t involve putting your vehicle at risk.
Try to secure a personal loan or credit card with a lower APR instead. While credit cards are not suitable for everyone, there are unsecured cards designed for people with poor credit. Other alternatives include peer-to-peer lending, a payday advance or a pawnshop loan. While these options don’t help build your credit, they won’t lead to the long-term credit consequences associated with a car title loan. You may also want to consider asking friends or family for money.…