I've only had to use a title loan once, which is a lot for me since I haven't had a car for most of my life, but I do want to share with you what I know and what I've learned so that you can get cash fast with title loans.
Title loans are a helpful resource for those that are in need of fast cash They have their risks, since if you don't make a payment they'll come repo your ride. When used with caution, title loans help people get the fast cash they need, when they need it.
Auto title loans work by putting your paid off car up as collateral for a cash loan.. You're set terms for when your loan is to be repaid, and you make that payment with the interest to keep your ride. If you don't pay back the loan on time, they send the repo man to come and repossess your ride.
What You Need For A Title Loan
In order to get a automobile title loan you'll need a automobile (duh) that is totally paid off and a copy of the car's title. You're going to take this with you to the auto title loan lender and they will figure out a dollar amount for your automobile. After determining the value of your automobile, you'll be made a loan offer and the terms of repayment. The terms are usually four weeks with an very high interest rate. Auto title lenders are very loosely regulated, so their terms are very different than a traditional banks would be.
Often, you will also have to give them a key to your ride in case you fail to make payments and default on the loan. Cash auto title loans are not very kind, and will come and repossess your car from you. In some states there aren't laws that make the lender pay you the difference of the sale of your automobile and the money that you owe them, it could end up a double whammy. One title loan company in the southwest actually mandates that every ride is installed with a GPS tracker that allows them to find it when it needs to be repossessed.
When You Shouldn't Get A Title Loan
The worst time to get a pink slip loan is when you can't afford to pay it back, I know that's obvious but they'll lend you money. You're probably saying, "Yeah dude, I know that already," but lost of pink slip loan lenders make as much money selling their repossessed cars as they do in the interest earned. This makes me think that people aren't assessing the risk as much as they should before signing the contract.
If you're serious about getting a auto title loan, spend a while researching their websites to see which one is going to give you the best deal. They aren't really covered by any laws that make it clear how much can be charged, so the terms will be very different for each company. This research can save you lots of money, or even your car, if you are willing to spend the time actually doing it.
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