This entry was posted on Tuesday, July 28th, 2009 at 5:45 pm and is filed under Car Title Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
July 28, 2009
Car title loans, which are also known as pink slip loans, are lending tools taken out against the value of the vehicle. Although these are technically considered collateral loans for cars, you do not actually have to surrender the vehicle while you are in the process of repaying the loan, like you would at a pawn shop. You can get cash for car title loans by handing over the clear title to your vehicle rather than handing over the car itself. You still get to drive around and as soon as you pay the loan back plus interest and fees, you will get the title back with no harm done.
There are a few requirements to get car title loans, but unlike loans and lines of credit from banks, the borrower does not need to have a good credit rating. You can get cash for car title loans as long as you have proof of income, identification, ownership with full coverage insurance, and some basic documents such as utility bills and references. And, of course, you must ask yourself if you will truly be able to feasibly pay back this loan. Because if you can’t, you’ll be in a worse situation than you were when you began, since you will no longer have your car.
Collateral loans for cars are often put in the same category as pay day loans since they are both subprime loans, but there are significant differences between a payday loan and a pink slip loan. With a payday loan, they simply take a check for as much as a few hundred dollars and deduct the amount from your paycheck. With car title loans, they take the title to your car and give you as much as half the vehicle’s value with anywhere from a few months to a few years to repay.
It’s important to pay these loans back responsibly, but as long as you do you’ll keep your car and be able to pay your bills.
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