Are car title loans good or bad?
Are Car Title Loans a Good Idea ? Well, that is a great question. We think it really does depend on the situation that you are facing. Making financial decisions is always a tough decision to make.
Is this a good investment? Is this a good loan for me? These decisions all are difficult to answer and only the individual can answer them. Some of the decisions have a large financial risk associated with them. We understand your dilemma when you ask yourself if “car title loans are good for me?”
There are pros and cons to car title loans. Sometimes it’s a very difficult decision to make. There are plenty of car title loan companies out there. Some of them are good and some of them are not so good. To qualify for a car title loan it is much easier than it used to be and they are defiantly easier to get than traditional loans.
You need to choose the right lender to help you get the best title loan for you. With so many new lenders out there it is very tough to choose who is good and who is bad. The last thing you need is a bad lender because that can leave you in a big mess.
When you are getting your title loan and you have a financial emergency, you need to take your time and make sure the lender has experience in title loans and will be able to help you. If you are in a financial bind and you need money fast, then only you can decide if a car title loan is an answer for you. If an auto title loan is for you, then we are going to give you some more information to help you decide what’s best for you.
Car Title Loans vs Traditional Loans
The best things about getting a loan from traditional banks are, that they have the lowest interest rates. So you will be paying lower monthly payments because of the low-interest rate. The loans at the banks are typically unsecured loans, so that means, there is no collateral attached to the loan to secure it.
When you get an auto title loans they are generally high-interest loans. Your monthly payments will be higher than the traditional loans. The title or the pink slip will be held at the collateral to secure the loan. The amount of the loan will depend on the value of the car. The bank will determine how much they will lend to you based on your credit score.
Banks determine that if you have good credit you are considered low risk. With auto title loans, we do not lend based on your credit score, we lend on the equity that you have in your car. As bad credit is accepted, we have to charge a higher rate because of the higher risk that was involved.
Advantages of a Car Title Loan
Get Money Quickly: We can do same day funding. The speed in which we can lend you the money will all depend on how long you take to get us the required documentation, and then how fast we will be able to verify the information. We always do our best to try to get you funded the same day.
Credit Doesn’t Matter: As we are not a credit lender, it is not a deciding factor.
We will use the equity that you have in your car to determine the dollar amount of the loan and your proof of income. We need to see that you will be able to pay for the title loan.
So if you have bad credit, we will be able to help you get the loan that you need.
Keep Driving: Doing a car title loan with us allows you to keep and drive your car, while we are placed on the title as the lien holder.
You are able to continue using the car as you did before getting the title loan from us.
Easy Application: We make applying to us very easy and quick. You can apply over the phone with one of our experienced sales reps or you can go online and fill out the application on our website. Once we receive the application we will contact you.
We will need form you, is your proof of income, your proof of residence, photos of the car, a photo of the odometer, we will do a credit check, we will need your insurance and we will need five personal references.
We try to keep it to a minimum, so it is easy for you.
Disadvantages of the Car Title Loan
Higher Interest Rates: Because we give you the money on the same day and we are not basing your approval on your credit, the interest rate is much higher than traditional loans.
The interest rate is a factor but it is much more expensive than a traditional loan. Auto title loans, in general, are high-risk loans.
The possibility of Repossession: If you do not make your payments and there is no communication, then the car will get repossessed. That is the same with traditional loans too.
Using your car as collateral is risky. But if you have the income to support it, then it will not be an issue for us.
Shorter Loan Terms: All of our car title loans have loan terms ranging from 24 to 48 months. This will depend on the underwriting and the needs of our client.
With our no prepayment penalty program, it allows you to pay us off at any time. We give you the flexibility to pay us off or pay down your loan at any time.
Unexpected Fees: We do not have any unexpected fees. If you are late, then you will have to pay the late fee. If you get repossessed, then you will have to pay the repo fee plus the storage fees.
We always strongly encourage you to pay us on time. We will call you to remind them when their payments are due. By always paying late, it will make it very difficult to pay off your title loan on time.
We are going to help you when you need money that we will make it easy for you to get it when you need it. When you get a loan from us, you will get more money than any other the other lenders can offer you. We will also get the best rate possible, so it will be easier to pay off the loan with your on-time payments.
We will work with you to make sure that your title loan will fit your budget and you get the amount of money that you need.
Excellent Customer Service: We will give you the best customer service. We will work with you if you are going to be late for a payment. Or if your payday has changed, we will be able to do a due date adjustment.
Call us and we will always work with you. Communication is very important and remembers we are here to help you.
We never want to repossess any vehicle. We will always do our best to avoid it.
If your car does get repossessed, we want to get you back in it as soon as possible, so you can continue to enjoy your car and get to work.
Longer Loan Terms: If we have to have longer-term loans then we can. We generally have loans from 24 to 36 months. But if needed to try and keep the payment lower, we can extend them to 48 month long contracts. We will work with what is going to fit you best. The longer-term loans are for larger amount loans, so we can make the payments more affordable.
No Prepayment Penalties: we give you our prepayment penalty program. This allows you to pay us off at any time. The sooner you pay us off the more money you will save.
We also allow you to make partial payments, so you can lower your principal balance and then you will pay less interest. We try to make it as easy as possible to pay off your title loan.
Car Title Loans a Good Idea?
Well, car title loans are not for everyone. Some people will say that they are too expensive. Only you can decide if they are a good fit for you.
If you have an emergency situation and you need a few thousand dollars immediately, then they can be a good option for you.
If they are good for you or if they are bad for you, it is good to know that if you have no options and you have an emergency and you need money now, then maybe a car title loan is the best option for you. By knowing the pros and the cons, it should help you make a better choice on whats right for you.
Here at Car Title Loans California, our title loans are different. We do our best to help you minimize the risks. Contact us and let’s see how we can help you use the equity that you have in your vehicle and get the emergency money that you need. Find out more about what we can offer you by beginning the application process now. We’ll give you a free quote with no obligation so you can really decide if a car title loans are a good idea for you.