You may become frustrated and pressured when you find your self in a situation where you are in dire need of emergency cash. You are under more pressure when you are not sure of where to get your needed cash. Auto title loan is a life saver in times like this, it allows you to use your car as a collateral to get cash and meet your emergency financial needs.
Auto title loans are not like the regular payday loans, they are secured and safe loan. When the borrower signs to get an auto title loan, he names the car as the collateral for the loan. This in turn reduces the risk for the lender and allows them to offer a much larger cash amount for the loan.
Auto title loans allow borrowers in need of an amount of money to have access to their needs via a secured loan and still be able to use their vehicles for their daily routine. Since auto title loans are not provided through traditional institutions like banks, those with a low credit, those who have recently received employment, retired or disabled can access this loan.
The documentation process is not as tedious and time consuming as traditional banks with probably little or no hope of getting the loan. However, certain requirements are necessary to obtain auto title loans such as your car, the clear title, proof of income and government issued ID. One of the benefits of this type of loan is that lenders do not check the credit score or require any auto insurance. To have access to auto title loan you must be 18years and above and the loan is approved upon the inspection and appraisal of your vehicle.
Another added benefit of taking an auto title loan is that you get to drive your car while you pay up the loan. However, the lender holds the title until the loan is repaid. The loan is very helpful in getting fast cash so far you own a car and possess a lien free title. You can as well obtain auto title loans online as there are numerous online title loan stores that offer auto title loans quickly and effectively. All you need to do is apply online by filling out the online form and providing the lender all your important details.
The quicker you pay off the loan the lesser the interest the borrower ends up paying. Some lenders agree to allow monthly interest payments but it is wise to make payments towards the principal every month to avoid a huge payment at the end term or you face the risk of loosing your car to the lender. Loans like auto title loans can put you into a debt trap if you are not careful.
If you are the kind of person that has a hard time meeting up with payment of bills or remembering when your payments are due then you should choose to pay with a postpaid cheques or direct debit from your bank account. There are no credit checks to pass through this thus makes the loan a good idea when you need quick money to make important payments like hospital bill. Ensure you have a good payment plan before signing up for an auto title loan.