Car Title Loans

Auto title loans, also known as pink slip loans, use a person's vehicle as collateral. If the loan is not paid off, the company has the option to repossess the car. This type of loan is usually a short-term solution used when the borrower needs the additional funding very quickly. This is also an option for those who have bad credit or no credit at all.

Benefits of Auto Title Loans

An auto title loan can have a few benefits. A title loan can be obtained very quickly, since a credit check or study of the person's assets, other than the vehicle itself, is not usually required. Car title loans are designed for those who cannot receive traditional loans due to poor credit or only needing a small amount of money. These title loans are very short-term, since they are typically paid off thirty days after the amount is borrowed. There are some car title loans that are more long-term and have payments made to only cover the interest. Using this type of loan, a person can typically borrow an amount ranging from a hundred dollars to about half of the vehicle's worth. An auto title loan is an acceptable solution if one needs to borrow the sum to cover expenses but will very quickly be able to pay it off, such as if his next paycheck will equal the amount needed.

What Is An Auto Pawn?

There are some things to consider before looking for a title loan. When using this type of loan, the consumer is entering into a type of "auto pawn". He is temporarily trading the ownership of his vehicle for a sum of money, and if he cannot pay it back in a specified period of time the trade will become permanent. This can be devastating if the vehicle is someone's only means of transportation. The costs associated with auto title loans are not very desirable.

High interest rates, sometimes triple-digit annual percentage rates, and various fees are often part of a title loan. It is extremely important to understand the aspects of a loan before agreeing to the terms. Ask plenty of questions. Some lenders may only mention the monthly interest rate, so make sure that you understand how that translates to the annual percentage rate. Inquire about all of the fees involved with the car title loan. If there is a fee to repossess the vehicle, refuse as lenders are not supposed to charge for this. When looking for a long-term pink slip loan, it is important to understand that interest-only payments mean that you will still need to pay the entire original balance at the end of the term.

Summary

Overall an auto title loan can be a good option for a well-informed person who needs short-term financial assistance. To begin looking for a loan that fits your budget, all you need to do is fill out the form at the top of the page. Using our online resources will save you the stress and time needed to visit different lenders. You do not even need to leave the computer to find a loan that is right for you.